Why We Can't Stop $100 Oil

摘要

When the price of a barrel of oil briefly hit $100 in trading last Wednesday morning, it was basically a nonevent. After adjusting for inflation, $100 per barrel in 2008 still isn't a record. And really, what's the difference between $99 and $100? (If you answered $1, come to the front of the class.) It functioned more as a Rorschach test. For presidential candidate John Edwards, it was "just another example of how corporate greed is squeezing the middle class." American Petroleum Institute spokesperson Karen Matusic noted that oil's hitting the century mark should spur efforts to "explore for more oil and natural gas. After all, 80 percent of our potential domestic resources are cut off from drilling." For Renewable Fuels Association president Bob Dinneen, the event highlighted (wait for it!) the importance of recently passed legislation that subsidizes ethanol production. And for Treasury Secretary Henry Paulson, it was an occasion to marvel at just how well the U.S. economy has held up in the face of such challenges.