Bubbling Out

‘THIS oil thing is just a bubble,” Steve Forbes said in May. “The price of oil peaked in 1980 and then went down to almost $12 a barrel by 1986. These things run in cycles. New supplies will come forth, consumers will cut back, and pretty soon the price will come down again.”

That’s the optimistic view of the situation-and some close observers agree. Time reports that Richard Rainwater, the investor who rose to No. 91 on the Forbes 400 by betting on oil stocks, has dumped his holdings. “I just felt that America was not ready for $4 gas,” he said.

About the Author

William Tucker

Mr. Tucker is author of Terrestrial Energy: How Nuclear Power Will Lead the Green Revolution and End America’s Energy Odyssey.

Featured Tags

‘THIS oil thing is just a bubble,” Steve Forbes said in May. “The price of oil peaked in 1980 and then went down to almost $12 a barrel by 1986. These things run in cycles. New supplies will come forth, consumers will cut back, and pretty soon the price will come down again.”

That’s the optimistic view of the situation-and some close observers agree. Time reports that Richard Rainwater, the investor who rose to No. 91 on the Forbes 400 by betting on oil stocks, has dumped his holdings. “I just felt that America was not ready for $4 gas,” he said.