Here's the picture: we produce just over 5 million barrels of oil a day here in the U.S.

Our daily consumption is 20. 8 million barrels.

The math speaks for itself. We're dependent on imported oil and oil products for the large majority of our daily consumption.

We have approximately 21.7 billion barrels of proven oil reserves left in this country. We have several hundred years' worth of coal, and a similarly massive amount of oil shale. Environmental prohibitions and the state of current technology essentially preclude us making more extensive use of those domestic energy supplies.

Oli prices are skyrocketing for two reasons: one is that China, and to a lesser extent India and other fast-growing third-world economies are industrializing at an unprecendented rate. The world has never before witnessed an economy that's growing as fast as China is. The law of supply and demand dictates that a commodity such as oil that is not growing in supply, but is in increasing demand, will rise in price.

The second reason is speculators. Most commodity prices are affected by the futures market--that is, a market where speculators 'bet' on what the future price is going to be, and buy and sell contracts for future deliveries based upon that price.

For some time now, as the futures market has seen demand for oil go up (due to China, India, etc.), it has bid the contract price up. The message that this market is sending is that consumption is going to increase, creating more and more demand. As demand goes up, and worldwide production remains pretty stable, the price goes up.

It's difficult to see how China isn't going to keep growing and consuming oil at a faster and faster rate. Meanwhile, we can't/won't increase domestic drilling and refinery building.

So the outcome is crystal clear, for anyone who wants to look at the facts. Unfortunately, for the past thirty years none of our elected leaders have really wanted to present the truth--and the tough solutions that are called for--to the American people.

And that, in essence, is why we're heading into some very deeply troubling times ahead. Future wars are likely to be fought over natural resources. Oil will certainly be one of them.

Last night my son on his way to work passed a Chevron with the price for regular listed at $4.05. This mornig coming home from church my wife and I passed the same Chevron with the price now listed at $4.09. We are maybe headed to $5.00 a gallon, and we thought $2.00 a gallon awhile back was bad. This is kinda scary, I'll have to go to cruise-ins that are free or $10.00 or less registration fees. Aaron19762008-05-25 18:55:16

Cheapest gas in Klamath Falls, OR is 3.92

Cheapest gas in Redding, CA is 4.05

Both are good size community's.   Where is it all going to end ???
Barrel of Oil this morning is  133.  Record high was 135...

Everyone have a good Memorial Day and remember our vets.. Thanks

gas is 3.99 per gallon and diesel is 5.01 here in eastern washington

 its 4.00 a gallon for regular in eastern north carolina, I paid 4.25 for premium on saturday, diesel is 4.40..it costs 25 bucks just to mow the yard, maybe i need a goat. rd

It has been higher, but across the border in MO I paid 3.70 for Regular last night.  On the KS side, it is always 8-12 cents higher.    Don't even wanna think about Premium!!  And am I glad that I don't drive a diesel. 

[QUOTE=rick d] its 4.00 a gallon for regular in eastern north carolina, I paid 4.25 for premium on saturday, diesel is 4.40..it costs 25 bucks just to mow the yard, maybe i need a goat. rd[/QUOTE]

Hey Rick....25 bucks.  Just how big of a yard do you have?

Well gas here in Klamath Falls OR  is hitting the big 4 bucks too.
  Still acouple of stations at 3.94, but suspect they too will increase to 4.

In my small town of Dorris, CA   REG GAS IS 4.55!!!!!
steves742008-05-27 06:05:09

$4.70 for sneezle today...