Which costs more?

Next week we leave for Red River, New Mexico. Shanna's parents celebrated their 50th wedding anniversary last November and instead of a party they opted for us all to take a trip together. I'm really looking forward to it and I know Shanna and the kids are as well. What I'm not looking forward to is a loaded down Suburban pulling a trailer being filled with $4 a gallon gas. Shanna and the kids do not yet know that we will be foraging the forest for food.

Note: This run up in oil prices really chaps me. Quit feeding me this garbage about it being a 'supply and demand' issue. Should some of this ridiculous price increase be attributed to increased demand and/or decreased supply? Sure. But think about this - the price of a barrel of crude in June 2007 was about $65. Today it's over $133. So logically if it's supply and demand one of two things has happened in the past 12 months. Either we're now using twice as much or there's half as much.

Ok, I realize that conclusion may not be sound from an economic theory standpoint but consider this article posted on CNBC Tuesday:

Bubble, Bubble, Oil Is Trouble …
Posted By:Daryl Guppy
Topics:Commodities Energy Asia
Sectors:Oil and Gas
Is the world running out of oil? Or gold, or rice, or wheat, or almost any other commodity you care to name? Despite some usual shortages that have been offset by a surplus in other areas, there has been no significant change in the fundamentals of supply of most commodities.

Nor has there been a dramatic unexpected increase in demand from China, or India, or elsewhere for products in the commodity markets. The most likely culprit for the persistent and strong growth trend in commodities – speculators.

“Since the price hit $105, everything above $105 is speculation. Something like 50 – 100 billion dollars has poured into the market the last 2 months”, says Dr. Fereidun Fesharaki, CEO of FACTS Global Energy Group.

The disconnect between oil prices and fundamentals is a disturbing bubble...


Alright, enough of my rant. Check out this link for an interesting perspective on the price of oil:

CNBC - Which Costs More?

I found it very amusing until I got to Tabasco. That really hurt - I love Tabasco.