Is $120 Oil Actually Good For Us?

Sure the price of gas is hurting a lot of us right now, but there are some that say $120 oil is actually good for consumers in the long run:

"Nobody at Goldman Sachs wants to see a fuel truck pull up and say "Ok, here's your 60,000 gallons of gasoline,'" said Michael Cosgrove, president of the commodities brokerage Amerex Brokers, which handles transactions for both banks and end users of oil like refineries. "Ultimately, it's the consumer."

Which is one reason why $120 oil is necessary - to limit demand in a supply-constrained world.

"I think the market is working," said Joseph Stanislaw, an independent energy adviser at the consulting firm Deloitte & Touche. "It forces us to make decisions as individual consumers that will change our behavior. It needs to be done."

Link


Newest 5
Newest 5 Comments

I don't know about anyone else but I'm tired of the people in power telling us everything that happens with a negative attasched is our (the public) fault. We don't have sufficient public transportation, they continue to allow building of homes and business without regard to infrastructure and utility use, they haven't been working on alternative fuel and power sources and now we (the public) are suffering and blamed for the problem. We don't have a say other than electing politicians that cater to the special interests that include big oil, the utilities, and the car manufacturers. Yeah it's all my fault because I don't live next door to my job, within walking distance to the stores I frequent and when I do have to go any distance ride a bike.
Abusive comment hidden. (Show it anyway.)
Idil: maybe now that the price of oil is increasing, it might make financial sense for the sprawled US cities to install public transportation systems.

someguy - if environmentalists were smart, they'd endorse the building of nuclear plants. There's hardly any emissions, and the amount of energy available from the Earth exceeds that of oil.
Abusive comment hidden. (Show it anyway.)
Good point, someguy. If we can just burn all that oil those pesky environmentalists are protecting, then hundreds of millions of people will die when the sea levels rise. This will reduce demand and prices will drop. Let the market work!
Seriously, people in Europe pay more for their petrol (in part) because of higher taxes on the stuff. These taxes go on to fund excellent public transportation systems (at least compared to ours). I'd be all for higher prices if the money were being used properly. Instead it's all going to record breaking profits for oil corporations who exist only to make more profits--even if that means the planet has to die.
Abusive comment hidden. (Show it anyway.)
Dave has it right.

The USA has huge amounts of oil reserves that have not been tapped for the last 30 years because of environmental concerns. Unfortunately, many environmental activists want to force people to use less fuel for transportation so they like higher gas prices.

There may be a similar issue with the lack of new nuclear power plants in coming years.
Abusive comment hidden. (Show it anyway.)
Login to comment.
Email This Post to a Friend
"Is $120 Oil Actually Good For Us?"

Separate multiple emails with a comma. Limit 5.

 

Success! Your email has been sent!

close window
X

This website uses cookies.

This website uses cookies to improve user experience. By using this website you consent to all cookies in accordance with our Privacy Policy.

I agree
 
Learn More