How High Can Oil Go, or Are We Prophets?

From a 2005 Mises blog discussion about the real economics of corn ethanol as a motor fuel;

“…The fact remains that the energy input deficit alone is enough to kill ethanol until gasoline reaches $8 – $9 per gallon, without subsidies. Until this occurs, it will not be economic to replace gasoline with ethanol on a national scale.”

Today, from an article on the Bush Administration’s imputed plans to “bomb, bomb, bomb, bomb, bomb Iran”;

“Sinking or crippling a couple of the 50 supertankers as they pass each other every day in the strait (of Hormuz) would not be much of a challenge for Iranian gunners…ship-owners the world over would ban any attempt to navigate around the shipwrecks. A barrel of oil would quickly jump to $500 and gas would reach $12 a gallon…

Dwayne Andreas, please call your office.

(links courtesy of the Mises and Lew Rockwell.com blogs)


1 Response to “How High Can Oil Go, or Are We Prophets?”

  1. July 9, 2008 at 9:20 am

    If our government is looking to make Iran want to sink western oil tankers, then launching an unprovoked attack on them would do the job very efficiently.

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