In my opinion, anyone who thinks the world economy can support $200/barrel oil needs to have their heads examined.

I wonder if high transportation costs would destroy the idea of a global economy where goods are produced at low labor rates and shipped to markets around the world.

Reminds this old man of the situation that dominated the agenda of the Carter Administration.

The idea of giving this bucket of poop to McCain to deal with is a more interesting option if oil spikes to $200.

'Let them that caused it deal with it....'

Here's a stat:

When China and India reach the oil per capita of 2004 South Korea they alone will need 90,000,000 barrels of oil a day.  The entire world production is approx 86,000,000 barrels a day.  There is not a single oil analyst out there that is predicting a world production figure of 200,000,000 barrels a day any time in the future.  The Arabs are not uping production because they can't!  No one has ever been allowed into Saudi Arabia to confirm the Saudi oil reserve figures.

No Democrat or Republican will ever be able to do a damn thing about the price of oil and if they say they can then it is an outright lie!  Get used to high oil prices they are here to stay and will get higher so get the highest mileage car you can and make your home energy efficient.  Above all don't listen to any politician claiming to be able to bring gas prices down.

Oh, and by the way, thanks for having a blog that is not based on the trashing of one democratic candidate or another - you stand no chance of having substance enter the rec'd diary arena but I rec'd anyway.

I have no problem with oil hitting $200 a barrel - philosophically that is.  If that's what the market can bear, then that's what the market can bear.  Keep in mind that a large part of the increased oil cost in the US is due to the tremendous devaluation of our currency.  I mean, for God's sake, the dollar is worth less than the Canadian Dollar.  

I tremble at the thought of what people making less money than most would do at $6-7/gallon.  Having said that, the most sweeping and effective change comes when everyone stands up together, in unison, and says enough is enough.  This is what happened in Brazil before they were able to shift their entire energy structure away from petrol to E85 in only 7 years.  We are oil addicts - and junkies have to hit rock bottom before they can climb out of the whole.  I hope $6-7 is rock bottom, but I could see stubborn ass people willing to pay $10 a gallon.  The place that this will cripple the US is in the Midwest and suburbs...places without mass transit options like we have here in the DC area.

this also caused by the futures market. I was reading about it on KOS and they were saying that the market was driving up prices, its not so much the supply and demand the companies want you to think. THere is definetly market speculation caused be a fear that there is a nearing shortage.

Its like a self- fullfilling prophecy. We are afraid of the gas prices causing the shortage fear which causes buyers to buy up all the market futures, thus causing a $10 spike/ barrel in one day alone.

The system of supply and demand that the republicans shove down our throats is not working.

This would really hurt a lot of working folks badly, but ridiculously high gas prices (as if we aren't already experiencing those) are probably the best way to solidify public opinion around investments in clean energy, dramatically increased fuel standards, and a foreign policy that DOES NOT saber rattle against Middle Eastern countries and drive up the cost of oil's risk factor.

This is the most important post on this site and I rec'd it.  Today we're seeing the Democratic Congress at it's most pathetic.  Taxing Exxon will bring more money into the IRS but won't do anything to lower oil prices.  We passed that point long ago, get ready for a very rough ride!

Interesting diary.  Today Congress is quizzing the oil execs

http://www.msnbc.msn.com/id/24757944/