How do you feel about the high gas prices?
wingworm asked:
With gas prices nearing $4.00/gallon at this rate do you think it’ll hit $10.00/gallon within a few years?How do you feel about all this?Do you think that its just price gouging that is going on?
With gas prices nearing $4.00/gallon at this rate do you think it’ll hit $10.00/gallon within a few years?How do you feel about all this?Do you think that its just price gouging that is going on?
I think it ***** pretty hardcore
One reason for this rise of Oil price is Demand-Supply situation. We hit a peak in production in 2005. Since then, the production has been declining at the rate of 3% a year, whereas the demand is rising 3% a year. Another problem is that the value of USD in international markets is crashing. So, we can’t afford to buy fuel.
There has been no major Oil-field discovery in the last 4 decades.
The cost of Oil has doubled in terms of Euros in the last 5 years, whereas it has tripled in terms of US$ in the same period. There is no denying of the fact that the purchasing power of common man has declined sharply, all thanks to the Federal Reserve.
For Gas to reach $10 per gallon, Crude would have to be priced at $300 per barrel. It won’t happen unless the value of USD Greenbacks crashes in the International markets and everyone stars dumping dollars and they become worthless.
It is a distinct possibility that the value of dollar would crash soon. The United States has been exporting paper currency in order to import products and services from Asia and Europe. They no longer produce a lot of stuff in the United States any more. It is a service-run economy, and when the dollar crashes, gas will hit 10$ per gallon, and the ensuing hyper-inflation will take down the Stock-markets and all the savings.
Ron Paul is the only guy who can save America from Total Collapse…
Gas prices are consistently rising. It was just a few months ago when everyone panicked that it hit $3 a gallon. I honestly feel that prices will continue to rise until there is a reliable alternative to gas. Perhaps someone should come up with a system where we are able to run cars on salt water. Salt water is one fluid we have a surplus of. Gas prices are ridiculous.
In Europe they pay over 12$ a gallon so there is nothing stopping the American Government from raising them just as high. I don’t own a car but I have to pay my brother gas money when he drives me places which is not too often but still can be a major pain in the *** when he complains about it DX
The real war is economics.
I think its very bad, and we are like sitting ducks, buying hybrids from foriegn countries just like the oil.
What happened to America by the way.
Is it too much fun or too much greed?
You don’t even have high “gas” (petrol) prices! In the UK it’s about $8 a gallon. You have been very, very spoiled in recent years – welcome to a small taste of the real world. Think yourselves lucky – so far – and get ready for it to go even higher.
$4.00/gallon has been expected for some time to a certain degree. Since the 1970s looking at inflation, gas prices have had risen much slower than other commodities. Looking at the milk/gass ratio of the 70s to the milk/gas ratio of the late 90s to early 2000s, it was due that prices were to rise. We tend to be half the price of Europe. With Europe passing $8.00/gallon, it seems on target. Overall though this price increase has many reasons for occuring. While recently there has been heavy speculation in Sweet Crude Oil, it’s not necessarily price gouging on the gasoline end. While ExxonMobile is posting some of the highest numbers in their history now, it will only be due time until their cash reserves dwindle. We peaked our production around 2005 and oil is becoming harder to pull up from the ground. Once the main 80% of an area has been pulled out the last 20% is almost cost ineffective to pull out of the ground. While Saudi Arabia just increased production, they produce Sour Crude Oil so prices won’t fall or be affected by that. Oil found in Brazil has given a little hope to the system but it will be 5 – 10 more years until it is exploited.
While US consumption is down about 7%, India and China have increased their usage by about the same. Our gas problem only became pronounced when both these countries have begun to industrialize. The growth rate of these two countries is immense and their oil consumption will only go higher.
The credit crisis put a huge burden on hedge fund managers shoulder’s and they are exploiting the commodities market like no tomorrow. Washington needs to close loop holes in commodities holding and you will see the price drop if legislation were to pass (which it never will). The hedge funds are driving up the price of Sweet Crude Oil and is the cash cow they need to make up the ground they lost. Oil speculation is immensly high because of this.
Unfortunately the best way to drop oil prices is to deleverage oil by going back to coal at the moment. The US is the world’s largest coal supplier. While coal does leave a larger carbon footprint, switching to coal for power would cause enough of a drop in demand to make oil come down a bit, possibly starting a trend of shorting it which would drive prices down even further.