Woo Wee, What a thought for the day!

I lived in Houston during the Oil Crises of the 70's and subsequent Oil Gluts of the 80's. The cheap oil that we have enjoyed over the last 10 years has basically destroyed the domestic production system. We are much more dependent on foreign oil than we have ever been in the past. When the oil industry begged for some relief in the 80s they were given the response "Let the market resolve it". The crash of 1985 was the consequence. The Houston area alone lost more than a hundred thousand jobs in 1985 (can't remember the exact number).

Today's energy price increases are the direct consequence of OPEC starting to get its act back togehter and realize that they have us by the short hairs. The only reason that there has not been large scale problems with the economy and distribution system is that there is another technological revolution going in automation and Intelligent Transportation systems. There are more short term alternatives (re-routing, better distribution, just in time delivery etc.) today and we can use computers to make adjustments to short term glitches. This won't last.

We are heading for serious trouble unless as a society we start living in a more environmentally sustainable way. That includes weaning ourselves from cheap oil.

This is not a case of let the market rule, and government intervention for government's sake. One of the functions of government is to protect us citizens from the fluctuations and suffering that the market causes. If you can't get food because the truckers won't deliver it, or you can't afford to heat your home in the winter because of spot shortages in fuel oil, hearing some conservative anti-government policy wonk gush at how great the market is working really goes over well.

Anyway. We are now reaping the consequences of our actions. And its going to get worse before it gets better.

JAB