Gabriel M Key  

Thoughts on the price of oil:

“each time the dollar falls 1%, the price of the barrelrises by $4, and of course vice versa.” – Chakib Khelil, as quoted in The Economist, May 3, 2008 page 9.

So, right now we have a dollar at near historic lows,intense speculation about the supply of oil form the Middle East and other oilexporting countries, increasing demand from Brazil, China, and India, and annual pre-summer price hikes caused by Wall Street speculation based on expected increases in demand over the summer. 

Still think “Big Oil” is causing the current prices?

Ask yourself, what type of car do you drive, how often andhow far is it driven, and is it absolutely necessary for you to drive that car,that far, or that often?  This isyour part of the nation’s demand.

Also ask yourself, how much credit, personal, or home-equity dept do you have?  How muchdo you have in relation to any savings? Most of us have very low savings andrelatively high dept; this is a part of the reason why the dollar has droppedsome of its value. 

The current oil prices are not an individual problem solved with accusations, finger pointing, or simply waiting for others to make the difference.  It is a national problem affecting us all today, tomorrow and into the future.  We all must make changes in our daily life to see change benefiting us all.