I have to laugh when I hear there is a problem with gas prices. When gas prices spiked last summer, I called and talked to several oil experts. They told me that the oil pipe line in Alaska (that was corroded) plus continued problems in supply from Hurricane Katrina disruption were the major issues. We had problems with a bottle neck in refineries which limited production. Finally, we had the problems with stability in the Middle East which is a source for ongoing nervousness in the market. That’s what I heard last summer. So with predictions of gas prices going over $4 per gallon what happened, gas prices dropped by .50 – .75 cents per gallon. So, all of that told me one thing, no one really understood what was going on.
So, with gas prices going up, the experts are out in force, again. Let me tell you what I do know, no matter what the oil prices do the oil companies will rake in billions of dollars in profits. The oil executives will made millions just in bonuses.