Reply #9: Agreed, but this isn't a popular truth... [View All]

[Youphemism]

When the Saudis say, "supply is not a problem" -- given that you want to believe them, it can be viewed as true in the sense that we aren't going to run out of oil tommorrow. There is a supply that will still last a long time.

Pumping capacity is the problem. They're about to increase to pretty much their maximum ability to pump in Saudi Arabia. Everybody else is already at that point.

Given that scenario, and the current demand increase trend, the people who are dealing in oil futures are upping the price. This is not a "bubble." It won't go away, because the demand will only keep increasing. Even if the US does a stellar job of cutting back on consumption, bringing renewable energy resources online, etc... The new demand being created daily in India and China will offset all of our gains within 1-3 years.

This is a much more real problem than the manufactured crisis of the 70s.