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Sunday, August 24, 2008

Today the price at the pump was $3.74/gallon of gasoline. While that is good news short term, it will not stay under $4/gal for gas very long. We are running out of energy reserves and the world economy is so utterly dependent on energy.

In addition any perceived weakness in petroleum prices will be minimal and short because of peak oil. As world consumption continues to exceeds output we will see an increase in price. It is predicted that present petroleum production capacity and its current expansion plans will be unable to meet the demands of China, India, and other industrializing economies.