Seems like just the other day when we were hearing that oil was too expensive when it got all the way up to $70 a barrel. Well today Goldman Sachs says that prices should average $141 a barrel the second half of this year.
So many people including myself have thought the top in oil was in, we were all wrong. Oil at $150 which I would have thought impossible not very long ago now seems inevitable.
Given this what should you buy?
DAI
Hey you'll still be rolling in your Benz!
Seriously I'm starting to see these all over the place.
I have no position in DAI.
So many people including myself have thought the top in oil was in, we were all wrong. Oil at $150 which I would have thought impossible not very long ago now seems inevitable.
Given this what should you buy?
DAI
Hey you'll still be rolling in your Benz!
Seriously I'm starting to see these all over the place.
I have no position in DAI.
4 Comments:
"Smart" is a city car. It can't function on the highway, so I doubt that it will be well accepted in US.
Regarding oil - what seems inevitable in the short-term, it is absolutely manageable in long-term. When the price of one good becomes too high, people are naturally looking for substitutes. Take for example Brazil. They are able to produce one barrel of ethanol for about $35 using sugar cane. Here in the USA people use corn for the same purposes. Unfortunately corn is not very good source of fuel and a barrel of ethanol produced from corn is over $80. It is not cost effective.
Take for example Europe. The average gas price there exceeds $8 per gallon and yet people continue to live their lives. The European countries have created very reliable public transportation system. For the longer distances, there are super-fast trains.
When there is a will, there is a way.
Can sugar beets be used as ethanol in a cost effective way? Does America grow many sugar beets?
Ivanhoff - I agree, people will adapt one way or another. I think electric cars will be a game changer in autos.
The transition period as adaptation occurs could be pretty rough.
Jim - I think bio-fuel in this country is in trouble.
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