Well, OPEC is going to keep screwing with fuel prices in an effort to destabilize the economies of those they perceive to be infidels – which is about 2/3 of the free world. They have a lot of trouble with the power they have and seem to think that they can do as they please, which is liable to get them into a war.
We Americans don’t learn very well in some areas because when gas first jumped up years ago, Detroit started churning out economy cars, investigating alcohol based fuels and so on. Once we got things under control, a couple of things happened. First, all of the major banks started investing in oil prices – not a good decision, which means that the higher the barrel price, the better for them. Then, OPEC dropped the prices.
Well, that screwed up some banks, made the economy spin and Detroit started churning out cars and trucks that get about 8 mpg. OPEC raised the prices again. Out come the smaller cars but the alcohol based fuels curiously seem to fall into the back ground. OPEC dropped the prices some and the economy flourished, more SUVs hit the streets and, this time, with engines MUCH less fuel efficient.
Americans bought them up! MORE POWER = greater fuel usage and us Americans hate to use a system of gears to create power like the French and Brits do, so we plunk in massive engines. OPEC snickered over that. Our banks again invested in the price of oil, and the costs went up a bit. Many of the American cities, naturally, decided to add a couple of cents of tax on the per gallon price for their own coffers.
The costs went up. Houses did not just get bigger, but people got tired of the small, energy conserving windows and started shoving in glass everything to let in the light. With light comes heat. More a/c is needed to cool the house. The house gets heavily insulated, but petrochemicals are often used to make the insulation to save gas used for power.
OPEC jerks the gas prices up and the economy staggers again. Only this time, knowing that there will be a drop, the gas guzzlers still come out of Detroit. By now, most of the people (a couple of million of them) who, for economy reasons due to rising operation costs triggered by high gas prices of the 70s, had been fired, have managed to find new jobs. BUT, there is a BIG rift between the American haves and the have nots, which starts to cause friction.
OPEC drops the prices a little and the economy booms. People buy up everything. Construction increases and assorted businesses churn out all forms of gas using personal fun craft. Nuclear power gets a bad name and instead of trying to make it safer, plant construction stops.
OPEC jerks the prices up, businesses start laying off people and millions are stuck with gas guzzling things. The banks, which have no brains anyhow, chuckle over the increase but mourn over the sudden rash of loans going into fault. Higher fuel prices = higher food, shelter, medical and transportation costs and some people have discovered that they cannot pay their loans.
Homes, businesses, cars, boats and toys are repossessed, creating a glut on the market and a loss (HA!) for banks. New businesses falter, lay off or fail. OPEC drops the prices again.
The cycle starts all over, only this time, many businesses keep their prices high, to store up operating capitol for the next increase. The rift between the haves and have nots increases and more tension happens. People start buying more toys.
OPEC raises the prices.
Get the pattern here? The way I look at it, they’ll keep it up, screw up the lives of a couple of billion people until eventually some nation has had enough and goes in shooting. (Yeah. I know it sounds like that other post in the SDMB, but it certainly looks like what’s going to happen.)
‘I like me but I sure as shit aint so positive about you.’
