I really hope these guys are wrong...

I must say I’ve been a little obsessed with the situation with oil right now. Prices seem to be taking on a life of their own. Depending on who you believe this is due to pure speculation or its due to global demand outstripping supply or due to price manipulation. Regardless of the cause, oil is so critical to our way of life in the US that this is impacting everything. Stacks of SUVs piling up at local dealers, lots more compact cars on the road and the price of everything that is transported anywhere (aka everything) is rising. Personally I have cut down on anything non-essential and have sold my V6 sporty car and got a civic.

As we quickly approach $5/gallon here in California, what will this mean for the value of the housing in suburban and exurban areas such as Eastvale? There are clearly not enough jobs locally so people are forced to drive to Orange County or LA county every single day. To combat the rising cost of my own commute I’ve started taking the train every day. Not everyone works within a reasonable distance from the very few train lines though so this is not a solution for everyone. What will we do when gas costs $10/gallon?

In terms of oil supply and the future I really hope these guys are wrong:

http://www.youtube.com/watch?v=NDHYAbe9qNg&NR=1

If you look at the peak oil theory, the world doesn’t even need to run out of oil for there to be major calamity:

http://www.lifeaftertheoilcrash.net/