One thing that struck me while reading the NY Times recently is that the news that China and Mexico are stopping the subsidization of gas prices did not seem to be much big news in the gas price news world.

It seems to me that the fact that people in China and Mexico will now have to pay 2 to 3x what they are paying now will have a HUGE downward effect on the demand for oil.  I could be wrong, but look to see the oil price plunge in the next few months.

Don’t get too happy though.  The supply will keep going down and demand from population growth will keep going up, so gas prices will continue to rise long term.  We need to do what we can to replace oil NOW!  Buying a gas saver car is just the beginning.

Right now, the welcome mat is out for analysts who claim that out-of-control speculators are responsible for $4-a-gallon gas.

I confess to seeing OReilly mention it enough, that I’ve believed it too, and so have a lot of people in this country…

Somewhat surprisingly, Republicans have been at least as willing as Democrats to denounce evil speculators. But it turns out that conservative faith in free markets somehow evaporates when it comes to oil. For example, National Review has been publishing articles blaming speculators for high oil prices for years, ever since the price passed $50 a barrel.

Reading this article opened my eyes to some other possibilities, and this country really needs to develop some renewable power sources before we’re paying $10 a gallon, which is undoubtedly coming. Read the entire article and see what else might be to blame…