Friday, June 01, 2007

Russia's Playing With Fire

Russia keeps trying to muscle it's way around the world energy markets when it comes to it's own natural resources. This is a dangerous move for them on many levels.

First off: No one will want to do business with them if they have a reputation for simply forcing people out if the other party starts making heavy money.

Secondly: They have shown that they are an unreliable energy provider because what they've been doing lately is nothing more then very expensive extortion.

Lastly: Take a look at what they are doing carefully. They are driving up energy costs for everyone. Do that, and people will start looking for alternatives. If people start looking at solar, geothermal, and other renewable resources, Russia won't have any customers.

I know I've been eying another hybrid for quite some time now. I just need the economics of it all to line up just right. Oil companies and oil producing countries have tasted what it's like to have a barrel of oil spike above $70. That means that we won't ever see gas down to $1.80 like it was just a few short years ago. I have a knack for seeing patterns and this is a classic.

People see gas shoot up to $3.50, they get angry, they see their bill go up, then gas settles down to $3.00 a gallon. People are happier that gas has gone down significantly and they are seeing less money come out of their pocket. But they don't remember is that the previous year, gas was at $2.50 and still there's a net increase of 50 cents a gallon.

Keep it up Russia, if you piss off enough people, you'll be back to standing in line for hours for a loaf of bread again.

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