tag:blogger.com,1999:blog-6794081868790733319.post9033775413858837767..comments2008-05-07T17:47:33.947-07:00Con Gurthttp://www.blogger.com/profile/17769604598890725642noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6794081868790733319.post-91472122537571891382008-05-07T17:47:00.000-07:002008-05-07T17:47:00.000-07:00Oil prices hit another new all-time high on the momentum ignited by two, very alarming words- “Super Spike.” Goldman Sachs predicted the possibility of oil reaching $150-$200 over the next 6-24 months. By taking prices to new record after record, speculators are playing a critical role in solving the energy crisis by speeding up the process of gaining greater energy efficiency. Higher oil prices incentivize higher capital spending on a wide range of energy projects while at the same time encouraging lower levels of demand by energy users. That is a needed reaction and attempts to alleviate the current crisis, such as the gas-tax holiday, would make things worse. I'm certainly in the group that is against the holiday and other measures to alleviate the energy crisis with band-aid solutions. While I would certainly appreciate lower gas prices this summer, a momentary break may only serve to mute that reaction. It is unfortunate, but the price of oil needs to become economically unviable for the current energy landscape to change. <BR/>Ryan WegnerRyanhttp://www.blogger.com/profile/02090399941346058588noreply@blogger.com