Oil at $150?

Well, not immediately. Maybe by 2015, though?

China has already passed the U.S. in coal use. By 2020, it may pass us in oil consumption. And, that "surge" cannot but impact oil prices.

Since we may well have hit "Peak Oil" three years ago, if China doubles its oil use in a decade or less, that will inevitably put upward pressure on oil prices.

Per Canadian Liberal MP Dan McTeague, that may open the door to more speculation.

“What that means in normal lingo is that the fundamentals of supply and demand have been thrown out the window,” he said. “If supply and demand fundamentals cannot discipline the price discovery, then price can be whatever it wants to be and any excuse can be used.”

He said tax on fuel in Ontario, Quebec, B.C. and New Brunswick is also helping to push the price up, in addition to refineries in eastern Canada who charge between 17 and 20 cents per litre to convert crude into transportation fuel when the actual conversion cost is more like three to five cents per litre.

“Consumers are now vulnerable to the effects of unbridled speculation and subject to potential shortages as a result of restraint in competition at the refinery level,” McTeague said. “We’re flying blind. We have no idea just how serious this situation has become.”

At the same time, don't forget that hear in the U.S. President Obama refused to tackle the need for more regulation of commodities derivatives as part of financial regulation reform. If Peak Oil is here, Enron of a decade ago will seem like nothing.

That said, if this really starts hitting the fan early enough before the general election, we may see Obama forced to choose between continuing to run a $1 billion presidential campaign and working to pass something that's not completely toothless in terms of commodities regulation.