A story about high gas prics
It is about Demand. I found this in the another blog
""Tired of high gasoline prices and rising food costs? Well, here's a solution. Let's shoot the 'speculators.' ... Gosh, if it were only that simple. Speculator-bashing is another exercise in scapegoating and grandstanding. Leading politicians either don't understand what's happening or don't want to acknowledge their complicity. ... Oil rose 177 percent, corn 70 percent and copper 360 percent. But that's just the point. Did 'speculators' really cause all these increases? If so, why did some prices go up more than others? And what about steel? ... A better explanation is supply and demand. ... 'We've had a demand shock,' says analyst Joel Crane of Deutsche Bank. 'No one foresaw that China would grow at a 10 percent annual rate for over a decade. Commodity producers just didn't invest enough.' ... Or take nonferrous metals, such as copper and aluminum. 'You had a long period of underinvestment in these industries,' says economist John Mothersole of Global Insight. ... Commodity-price increases vary, because markets vary. Rice isn't zinc. ... For every trader betting on higher prices, another is betting on lower. These trades are matched. ... But all the frantic trading doesn't directly affect the physical supplies of raw materials. ... If politicians wish to point fingers of blame for today's situation, they should start with themselves", "
The answer is India and China. Why speculation might be a factor, the India and China factor is exactly why the price of gas is peaking. Simple face it. We do not have the supply to meet the current demand.
But drilling is not the answer. It is taking Al Gore's challenge and making it happen. Taking Al Gore's challenge is how we can become energy indepedendent.