Oil & Gas Association: Where do we go from here?

One reader's reaction to this article:

There are 42 gallons in a barrel of oil. Of that, on average, 19.4 gallons is refined into gasoline, 9.7 gallons is refined into heating oil and diesel, and 4.3 gallons is refined into kerosene and jet fuel. The balance is refined into other products or feedstock for chemicals. Roughly 75% of a barrel of oil is coverted to a fuel source.

If you look at the numbers, there never was a surplus or shortage of oil that warranted the price increases we witnessed this past year. Speculation and day trading ran up the price of oil. There was apparently an abundance of money in the market that needed a place to go, hence that money was put in to oil and subsequently ran up oil prices. Probably not quite that simple, but not far off.

Money is now tight, oil prices are down... Production volume and consumption remain the same as before...