Even More Proof

I saw in the news today that Americans drove 1.4 BILLION fewer miles in the month of April this year than they did in April 2007 as reported by the Department of Transportation. It's the sixth consecutive month that total miles driven has dropped from last year.

Overall, Americans have driven 20 billion fewer miles so far this year and about 30 billion fewer miles since November.

Even though we are cutting way back on how much we use, the price continues to rise. Supplies are increasing, yet the price continues to rise.

I've heard the figures flying around the net saying that it only costs the Saudis a few dollars in actual production costs to produce a barrel of oil that they are now selling for over $130. I don't really know if the profit margin is that disgusting or not. I know they have more money than they know what to do with, so they buy things like diamond encrusted, sterling silver cars to drive around in. They live in palaces that puts the term "mansion" to shame. They built their own islands in the shape of palm trees and indoor ski resorts in the desert.

They're lining their pockets as are the speculators on the commodities markets and laughing all the way to the bank. It's basically legalized theft and they're getting away with it. For now...

I can't help but think that it will all come crashing down at some point. Artificial market inflations tend to correct themselves eventually. Just look at the housing market. When property values went skyrocketing too fast the market dumped and will stay slow until actual value catches up to the artificially high prices. Sooner or later, this will happen in the oil market.

I think that this drastic price rise will ultimately help to destroy the oil market in the coming years. They've pushed it past the tipping point where people are so fed up with it that they are making the commitment to end the dependence on oil as our main energy source. People want alternative, renewable energy and the push to replace oil has begun. You'll see ethanol production drastically increase as well as more use of solar and wind, even in small applications. People are starting to do whatever they can to beat them at their own game.

I'm lovin' it.