Big Day for Big Oil, and Way to Future Profits Seems Well-lubed

The price of crude is cruising, and it's not on cruise control, it's on blast-off. A record high on Tuesday and perhaps another one today. Not only is the Federal Reserve priming the pump, they threw gas on the flames.

Not to be outdone, China's decided to increase its strategic oil reserves...just in case somebody turns down the spigot. China continues to burn up its share of the world's petroleum production and stands as #2 behind the U.S. in petroleum use. Nearly all its oil is imported. While some European and other develpped countries are curtailing use of petroleum, China's appetite more than replaces that market.

Some analysts expect the stockpiling by China to actually prevent huge price increases in the future, if there is a burp in the supply chain. China's stated goal: to have reserves enough for thirty days. Hope they can store this stuff in earthquake-proof manner.

These steep prices for crude make alternative energy sources look more and more economical. Even there global economics are at work with biofuels being shipped around the world. UK producers claim the U.S. is dumping government-subsidized biofuel into their market undercutting UK producers. And grain prices are at record highs in many countries because of the competition between biofuel and food industries, coupled with the generally high price of energy needed for fertilizer and production.

Trains and buses anyone? Electric cars?