The Ironies of Oil

Gasoline prices are on the verge of crashing down to below $2 a gallon. The price of oil may dip below $50 a barrel.

Even with renewed demand from a global economic resurgence, energy prices continue to fall. The U.S. has suddenly become the world’s largest combined producer of oil and natural gas.

That fact — along with a desire to weaken hostile Iran and Russia — has prompted the oil-rich Gulf sheikdoms to keep pumping oil even as the price falls. In their game of petro-chicken, the desperate sheiks hope that either their poorer enemies will run out of cash, or that fracking in the U.S. will become unprofitable and cease.

Everyone seems to have forgotten about “peak oil” — the catchphrase of the new millennium.

  • ontario john

    And whatever happened to global warming? Its freezing here.

  • Norman_In_New_York

    Should the price of oil fall below the cost of fracking, production will stop until either the price rises sufficiently to make it profitable again or newer technologies will lower the cost of production even further. Either way, $5 a gallon of gas will be a distant nightmare. Now, If we only can get the price of milk down to the price of crude.

    • .You are right about $5 gas being a distant nightmare. The situation will only get better as the rest of the world uses fracking technology.

  • Let’s hear it for free enterprise.

    The American oilman has kicked the butt of the mullah’s oil cartel.

  • simus1

    A total cynic might start to wonder how two upcoming years of cheap world oil prices might be of benefit to various political aspirants in the US and elsewhere. Don’t think Russia and the DemocRats would find it especially helpful to their causes.