Road Warning: $7 Gas May Be Ahead

[Froley1]

Originally Posted by EJFB1029

Well you are from Roswell, they might be aliens and don't have to worry about oil prices.

hah! quite right----
we all look at each other strangely here---checking for the long, long fingers you know....
regards
Froley

[taggart]

None of this will change or at least level off until Americans wake up and smell the coffee. I see some indicaions of it, but most of us are sticking our heads in the sand on this issue, hoping that our government will dig us out, while we stick to driving our pickups and suv's.

I've owned my Prius for 3 months now. I have a 72 month loan on it, although I swore I would never go beyond 60 months. That's ok, because I am accelerating the payments with additional principle payments each month.

Even with that, I am at least a little concerned that by the time it is paid off, gas will be so expensive that I won't be able to afford to drive even my Prius, and the value of it will be so low that I won't be able to trade it in on an electric or whatever else is available.

Maybe I'm a little paranoid.

[Barcelona Red Lass]

Originally Posted by Fibb222

Furthermore,, from reportonbusiness.com: globeinvestor.com - U.S. is in recession, and getting worse: Buffett

In economics terms the market is now called a "scarcity market". People fear there will be no gas/oil available at ANY price, so they are willing to pay the higher prices that are charged. In a normal market, demand would drop and prices would go down to equalize again at the proper level to the current demand. In a scarcity market, buyers (speculators and commodities purchasers) fear that at some soon future date there will be NO commodity left at all, therefore rather than declining to buy and waiting for the price to go down, they pay the outrageous prices being asked. The fact they are willing to pay the current outrageous prices sets the stage for the next hike, and the one after that too.

In layman's terms, we're screwed.

[orracle]

Originally Posted by EJFB1029

Well you are from Roswell, they might be aliens and don't have to worry about oil prices.

Dang it! You beat me to it!

[AdamKPL]

11 gallons @ $4.50 = $49.50.....11 gallons @ $7 = $77

I think we will survive, how will everyone else?

[pewd]

Originally Posted by hill

... that will not budge from their SUV driving pride.

they will eventually.
i don't know at what price point - $5 gas, 6, 7, or wherever - but we're getting closer to the point where SUV's and pickups used for single person commuting will disappear.

but we're not there quite yet.

[lucky1]

We are already paying $6.20 a gallon in Canada.
Someone in Germany parked his Mercedes in front of a government building,
poured gas all over it and torched it. I guess $10 a gallon does that to you.
I saw a report that said that in a few years there will be 10 million less cars on the road in the U.S.
I was in London for 4 days in December and after talking to a lot of people I realized that probably half the people in London don't own a car. The tube was so efficient for getting around the city hardly anyone travels above ground.

[Scummer]

Originally Posted by lucky1

We are already paying $6.20 a gallon in Canada.
Someone in Germany parked his Mercedes in front of a government building,
poured gas all over it and torched it. I guess $10 a gallon does that to you.
I saw a report that said that in a few years there will be 10 million less cars on the road in the U.S.
I was in London for 4 days in December and after talking to a lot of people I realized that probably half the people in London don't own a car. The tube was so efficient for getting around the city hardly anyone travels above ground.

It was a BMW.. but essentially same gas guzzling car. And he torched it in protest of fuel prices after he quit his job, because he didn't want to pay the 250 Euros/month anymore for fillups.
German police fined him for polluting and mentioned that he seemed normal and not crazy at all.

The thing that amazes me... fuel prices had been at 6-7$/gallon when I left Germany 10 years ago. So the increase in gas is not as much as it is here from a percentage of price increase standpoint.

[Kablooie]

$4.60 today in Los Angeles. And that's at one of the cheaper stations.

[joe1347]

This is a summary of the peak oil story at June 2008. The major themes of this presentation are

• The US oil story
• The world oil story
• Five myths



The Oil Drum | Peak Oil Overview - June 2008 (Pdf and Powerpoint available)

A presentation on peak oil guaranteed to ruin your day.