Big changes in Romeoland

[Whomp]

Higher oil prices are more a product of global demand than U.S. demand. Oil consumption in the U.S. was 17.3 million barrels/day in 1973 and 20.7 million barrels/day in 2004. Worldwide consumption over the same period has increased from 57 million barrels/day in 1973 to 82.6 million barrels/day in 2004. One example is South Korea which has gone from 281,000 barrels/day to 2.14 million barrels/day. China and India have a even more significant slope. As far as I'm concerned what is more problematic is these countries are heavily investing in the Sudan. A whole different can of worms.

What's amazing, unlike '73-'74, is this increase in oil prices has not created stagflation. Food prices are down for the fifth month in a row in the U.S.

Here's the good news. A German scientist is here to save the day. Biodiesel for 23 euro cents (.30 U.S.) /liter. 1/5 the cost of gasoline.

http://www.cnn.com/2005/WORLD/europe....catfuel.reut/