Energy Bubble Will Burn Bulls Just Like Tech Did, Says Top Investor Herro

Herro must be discounting an attack on Iran by Israel. Bad bet. My money says israel bombs before Bush leaves office.

It is clearly a bubble. We are already in the "this time it is different" phase.

energy cost will go down when we cant afford to go to work ................................ very soon.................

It's definetly a bubble- Will it burst or will the air be let out slowly is the question.

Sorry Herro, I will stick with Jimmy Rogers, Matt Simmons and T. Boone Pickens. Long term, there are too many people on the planet, we will get a pullback as our housing bubble continues to implode, that will create the buying opportunity of a lifetime. You lose all credibility by comparing commodities to the tech bubble. There is no comparison.

My opinion is the crude is going up so unreasonably. I do not agree that this is base on the supply and demand, but purely speculation. at the range between 70 to 80 will be more rational.Those arab oil producers had enough dollars in their pockets now, and now they are going to boost the supply. they are not doing any country any favor but only for their own selfish goal. I wish one day soon, we would be able to discover a sustitute for crude to produce the energy, like neuclear plant, wind fan, water power, solar power and others and those arab use their oil to cook their meals instead of water. (politics is a strange thing. president would send the american might to attack irak, why not sent an carrier group to arabia to compel them to increase production, just like during those colonial ara, the gunboad policy, forcing Japan to open to the world, and each one conpete to get the lion share from weak chinese empire.

I think he's right, I can't believe that the demand for oil has increased 150% in 3 years.

Saudis are smart, they are producing slightly more to lower the cost of oil, so we remain addicted to the stuff. Of course if you price oil at $10/gal, then all of a sudden our dear politicians will fund projects on alternative energy and at the end oil-producing countries will lose out. So what do you say to a drug dealer that wants to sell you cocaine on a discount and offers frequent flier miles?

Herro sounds like the biggest idiot in the world right now and someone who is just being pummeled in his investment strategy for going short on commodities. While there could be some level of speculative price built into oil, the commodity boom is a demand side statement driven by the unprecedented growth the world is seeing in emerging markets. The proof of this can be see well beyond the bounds of oil and in industrial metals, ag, and other commodity businesses. Today, Saudi Arabia said they will increase production of crude, a move that they would not have considered if the balance between supply and demand wasn't tight, On a bet between who knows more about the oil industry Herro or OPEC, i'll take OPEC everytime.

60-80 oil would be great! still good profits for oil companies and better for economy. Lets open up drilling everywhere, even offshore Florida

this is exactly why you DO NOT legislate against rising prices in free markets: if the prices are wrong, they WILL adjust eventually. THAT IS HOW FREE MARKETS WORK! let the prices run their course. and oh - no one is the "victim of speculators." that's the problem with Americans - we are ignorant and easily brainwashed by the press. If prices were clearly too high, millions of investors like Herro would come in and SELL oil, neutralizing the prices. This is not the case. it's not obvious. there are no evil "speculators" driving up prices. it's a free market.

A weak dollar causes higher commodity prices. Anything denominated in dollars is more expensive. The dollar is at record, as in all time, lows right now. One silver quarter bought you one gallon of gasoline in the 60's. Today one silver quarter will still buy you one gallon of gasoline.(melt value)Nothing has changed, except the worthless rag we know as the dollar. Bring back real money...

coal to liquid would be $50 a barrel.

thesoothsayers is right, comparing this to the tech bubble is wrong. You cant just hang a sign on your door and say your an oil company. You must find, produce and transport oil, which is infinitely more difficult than building web pages. Supply cannot keep up with demand. If you have any question regarding supply just look at this chart of US production and duplicate it on most all mature oil producing nations. The chart is US Crude Oil Production and US Crude Oil Consuption, its in the middle of the page http://www.rrc.state.tx.us/divisions/gs/rap/Pf0108a.pdf From 1997 to now production in the US is down from 6.5mil bbl/day to 5mil bbl/day. Consumption is up from 18.5 to almost 21. The consumption increase in BRIC, ME, and easten Europe is much higher than that. You do the math.

I live in the highlands of Maine where temperatures reach 30 below at times. Oil has become too expensive to heat a home with...it is funny though, that cord wood has also climbed close to 50 % in price right along with oil...are we running out of trees too ?....I think not. The American dream is broken. When was the last time you saw your income jump 50 % ? Wasn't it Democrats that passed NAFTA, and sent all our jobs overseas ? And here WE are getting ready to elect a Democrat into office....change ? Yes....waiting in a food line for soup WILL be a change for this American.

Can you spell "self - interest"? Can you say "I'm US focused and don't have a clue what's happening in China, India, or the rest of the world?"

Look at crude right now. It's heading up and the dollar index is heading down. Get the USD index headed up and crude goes down. It's simple.

The people responsible for the high cost of Energy were in Congress and the White House back in 1995 when they decided to not allow for drilling in ANWAR. Had we started back then, there would be at least an extra 1M barrels of Oil on the market....coming from the US. Instead, we are left begging the Saudi's to increase production by 500K barrels. Short term, emotionally driven (save the "whatever") has cost the American consumer Trillions of dollars in the past 40 yrs. It's time to vote out EVERY incumbent. Until they know that we are really in charge, we are doomed to get the idtiots back in charge year after year.

This is a supply and demand problem contrary to the speculators that politicians like to throw out there. The politicians love to put the blame on everyone but, themselves and they would scapegoat anything and anyone to suit their needs. Our energy policy is atleast 10 years or more behind other countries when we give tax breaks to those who buy those 8 cylinder humongous vehicles which consume the most gas and pollute the most. We propagate the ethanol BS due to the ethanol lobby putting money in politicians pockets. Farmers have stopped planting other crops except corn, most of which is used to make ethanol only. Rising food prices result from higher feed costs (from corn) for livestock (cows, pigs, chickens). China and India has huge increases in its population as practically even country yet, oil supplies and commodities are limited in supply. Apparently, some individuals failed their economics classes or were asleep at the time! LOL

When the commodities bubble finally pops, watch out for DEFLATION.