Letters to the Editor
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Energy bubble? I don't think so.
For years I've been watching the oil situation in terms of peak oil, rising demand, and volitile politics/war in oil-producing regions. I do not believe there is a bubble in energy prices, ESPECIALLY if the US economy is moving back into high-growth mode. Supply is so tight and refineries are at near 100% capacity that any little hiccup in the system sends prices up. Try to imagine if an oil rig got blown up or we bomb bomb Iran--you'll see $200+ oil in no time.
My strategy is to invest in domestic gas and oil, which there is still a LOT of and more is being discovered all the time. We get nearly half our gas and oil domestically still--and cheaply compared to what it takes to get it elsewhere. Next time foreign imports are interrupted, can you guess what will happen to the value of domestic production?