Against this backdrop, energy experts have gathered at the 19th annual World Petroleum Conference. One of the key issues being discussed is the high cost of gas, and how consumers and businesses will deal with it.

Andris Piebalgs addresses the crowd at the World Petroleum Conference

“We are clearly in the third oil price shock,” suggested IEA chief Nobuko Tanaka. He said the oil shock was similar to what happened in the 1970s and 1980s. This time, though, he didn’t think there was a quick fix for the problem.

“Those price peaks forced consumers into saving oil and oil companies to look for new wells,” continued Tanaka “But now the biggest energy savings have been made and … the easy oil outside of a few countries has been found.”


Video of a discussion on just what’s causing the high price of oil

Oil industry and public officials also gave dire warnings about where they thought prices were heading. Some called for global initiatives to tackle the issue.

“We need a global effort to improve our resilience,” EU Energy Commissioner Adris Piebalgs.

“If the EU with 27 countries … could agree on common energy policies, I believe we can do it in the global forum,” he said.

Gas prices in the U.S. were $2.96 per gallon one year ago today and are $4.09 today. That’s hitting people and companies right where they can least afford it. Consumer confidence is down and prices are up. This is never a good combination for the economy.

It certainly seems as if alternative energy will continue to attract more investment capital in the coming months. With enough capital invested, a major breakthrough that would introduce alternative transport energy cars to the masses could happen. That is one investment opportunity that’s definitely worth exploring these days.

Right now, oil shock has gripped the world.

During times like this, some entrepreneurs figure, “hey, I can attract crowds with super low gas prices.” Of course, they’re right. Watch what happens when this ploy is attempted with gas prices at an all-time record high.

People showed up for the free gas, all right. They did to the point where a huge traffic jam ensued, causing even more gas to be burned, and we’re talking about full price gas. In any event, a Broward county Free Gas Giveaway resulted in the radio station who sponsored the event giving away 4,000 gallons of gas.

Today the trading on Wall Street has been choppy, but some analysts, such as Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners Inc., expect better results soon.

“When you have this type of slipping in and out of the plus and minus column — usually that’s an indication that the market is trying to stabilize. But I think we’re going to need capitulation for the market to begin to stabilize,” said Cardillo.

After some initial downs, certain stocks are rebounding behind news that crude oil has bounced off its’ record high.

—Midday stock highlight:

H&R Block (HRB), announced they went from a loss to a profit in the fourth Quarter. “While we are not providing earnings guidance beyond fiscal 2009, we are confident that for the three-year horizon through fiscal 2011, we can realize significant gains in earnings per share through unit growth, greater efficiency in our tax and other operations, and capital deployment, rather than relying solely on annual price increases for growth,” said interim Chief Executive Officer Alan Bennett.

Oil is up, but investors are still hoping for good earnings news.

Rep, Bart Stupak has introduced the Pump Act, to try and stop excessive speculation in the commodities market.

Rep. Bart Stupak, D-Michigan, said that oil industry experts have agreed that speculation is causing $35 a barrel of price increases. Oil is now a financial asset. Commodity trading is now a massive market that is creating havoc in the markets and high consumer prices.

Stupak wants to end excessive speculation in crude oil. Check out the whole video from C-Span. His arguments are certainly compelling. The rise in commodity index funds is driving the price of commodities up worldwide.

Stupak has received broad support for his PUMP Act.