Will Oil Prices Continue To Rise?

Will oil prices continue to rise?, is not the question, how much higher will they go, is the better question. They are over $100 a barrel and rising and some think they will go over $200 dollars a barrel by the end of the year. Just think we could be paying five or six dollars a gallon by years end. Will that put another crimp in your already battered household finances?

The real scary think about all this is that it's happening with a glut on the market and not a shortage. If it was a shortage, like back in the seventies, when gas stations were out of gasoline, we could all understand that, but this is happening with the market so flooded with gasoline, that the oil producing countries are slowing down their oil production. My question is, how can a glut on the market raise the price of oil?

Take for example, gold and silver. They continue to rise because the dollar continues to fall and the demand for precious metals is going up. Every where you look the talk is about gold and silver. The demand is driving the price. Not so with crude oil.

It defies any marketing system that I've ever heard of. What about price and demand? If a product is high in demand and there is a shortage of that product, the price goes up. If the product can be found every where, and the demand is down, the price will be driven down. Current oil prices don't make sense to me right now.

Our country sets on trillions of barrels of oil, and yet we continue to run our deficit up by borrowing trillions of dollars from foreign countries, and using that to buy oil from yet other countries, our enemies.

Mr. President, and members of congress, start drilling for oil in this country and building new refineries, in this country, and we can say good bye to our ball and chain that our foreign lenders have on us. We won't be at the mercy of our enemies and those countries who are friends of our enemies.

There is no incentive for us to conserve and use less, when the price continues to rise no matter what we do. The reason people try to conserve now is because we can't afford to pay seventy or eighty dollars for a tankful of gasoline, not because we are trying to save our atmosphere, or make our planet green again.

I'll give you a great example, natural gas. The price of natural gas has been pretty much stable for the past thirty years. It has had a couple of spikes up, but it has done nothing like the crude oil prices have done. The reason for this is that we have our own natural gas, we don't go out and get that from anyone. We drill for our own right here in our own backyard. That makes a huge difference in the price of natural gas.

Why don't we do that for crude oil, is the million dollar question, and I do mean million or billion dollar question, in this county today. Is it that the president, and other presidents in the past, have deliberately kept our exploration and drilling on the back burner, to keep prices high?

High oil prices hurt us both economically and defensively. It puts us in harms way in a myriad of different ways with our enemies and counties that could use it to take advantage of us.

These high oil prices could be the straw that pushes president Obama's reelection dreams right out the window. If he doesn't get a grip on this real soon, he can kiss a reelection good-bye.

The only one who has ever done well, and continues to do well, weather crude oil is high in demand or there is a shortage, is the oil companies. You will never go wrong when investing in stocks of these large oil companies.

They always bounce back with resilience, after any crisis. Other companies would be bankrupt, but the rich deep pockets of the oil companies can whether any storm.

The gulf oil spill by a British Petroleum oil rig, was the largest oil disaster in history. Some 5 million barrels of oil spilled out into the Gulf of Mexico. Eleven men died, and the cost is still being counted. Yet these companies rack in record profits.

Now I am all for the free enterprise system and it's the best system in the world, and I'm all for companies rising to the top, if they go along the same path as any other company does, that's what makes the free enterprise system so good. It's free to anyone and makes it a level playing ground for any entrepreneur, but when that system is being taken advantage of and uses means that are against the freedom of the system, it will fall, and the economy will suffer.

I think that's what we are seeing in our country today, and for the past 100 years, it has evolved into this.

We are all paying the price for the greed of a few.