Oil, Oil, Oil

Come on, I had to write a blog on oil. It's like black gold. No - better yet, let's start calling gold "black oil". In fact, we need to submit a request to Webster's Dictionary that the word "OIL" has its spelling changed to $$OIL$$.

This blog has been on my "to do" list for some time. In the US, people get freaked out now that they're paying over $2 per gallon of unleaded gasoline at the pump. Well, I have news for you, $2 gas is here to stay. We ain't seein' it fall below $2. Ever. I just don't see it.

The US is so reliant on oil that I think gas prices could hit $4 per gallon before Americans would actually start to change their ways. Think about that - $4 bucks.

But that's not why Oil prices are skyrocketing. It's not so much about the situation in the Middle East,either, though it is a factor. It's China. It's India. Hello everyone! China and India are undergoing a revolution. Will this cause the world to run out of oil? Geez, maybe that might actually come true before I kick the bucket - though I am going to bet that Oil does outlast me, the world's oil supply could actually be in danger.

Oil prices have had one heck of a big run this year. But, I don't see them headed lower in the longer-term view. Shorter term - you might be able to catch a "sale" on oil and oil stocks, but let's just be ready because high oil prices are here to stay and, in this investor's opinion, aren't headed down anytime soon. I do think we'll get near 80, then maybe even 90 dollars a barrel within 18 months.

For a great article on the topic of oil, visit this Time Magazine article