June 27, 2008 7:57AM
$7 Gas
By Cheryl Casone
Get ready, one report out this week warns of 7 bucks a gallon, with oil prices hitting 200 dollar by 2010. (I had to read the year twice, because I can’t believe it is already 2008, where does the time go.)
In the analysis done by CIBC World Markets they also talked about the “body blow” to the auto industry. When gas prices hit $7 per gallon that will make driving a car too expensive for millions of Americans, taking an unprecedented 10 million vehicles off U.S. roads over the next four years.
Jeff Rubin, chief economist and chief strategist at CIBC wrote “Many of those in the exit lane will be low income Americans from households earning less than $25,000 per year. At their current driving habits, filling up the tank will have risen from about seven per cent of their income to 20 per cent, an increase that will see many start taking the bus.”
They also said auto sales will hit their lowest level since the early 1980s. I would not want to be at GM, Ford, or Chrysler right now. You are already under pressure from the Japanese and to a lesser extent the Germans, and now another negative forecast from an analyst.
What can these guys do to turn things around? And do you believe 7 bucks is two years away…….or sooner? Just asking.
CC
Comment by Bill
Jun 27th, 2008 at 8:32 am
I am still waiting to hear why these increases are so immediate. How does a resource go along for years with general increases then spike 100% in a year or so? Speculators? Sure, but not all of it. Greed? Absolutely. When will someone make the call that necessities cannot be traded for ridiculous profit? Is gasoline a necessity? For many yes. I live in a town of about 100,000 with no mass transit…sure we have a bus or two, but nowhere near enough to get 100,000 people back and forth to work. And I’m sure other towns are in the same boat. Contrary to popular opinion, everyone doesn’t live in NY, LA, or SF and mass transit isn’t even an option. When those 10 million cars are parked for the final time, is that 10 million more people out of work? Finally, when will voters DEMAND that Congress actually work and do something to save our County…
Comment by Bullie
Jun 27th, 2008 at 9:04 am
NO !! Oil Cos. no what the LIMIT IS !! It will stay around $4 - Bank on it !!!!
Comment by McLeod
Jun 27th, 2008 at 9:05 am
We will see $200 a barrel long before 2010….Everyone had best get OUT of debt….It ain’t gonna get better for AWHILE…..
Comment by Norman Anderson
Jun 27th, 2008 at 9:16 am
With all the talk about off shore drilling etc. Why don’t the feds bring back the
55 MPH speed limit, and inact it immediately?
Comment by American Man
Jun 27th, 2008 at 9:20 am
Bush hid for hours on 9/11 while the mayor of NYC took action.
Bush hid for days while Katrina destroyed New Orleans.
Bush hides when things go wrong.
Bush is in hiding now when he could act by limiting/stopping oil speculators. Some say it won’t work; well lets find out with a bold move but Bush listens to the greedy who could care less what happens to the USA as long as they can fill their pockets.
Bush is in hiding now when we need a leader.
Comment by John
Jun 27th, 2008 at 9:32 am
I think rising gas prices is something that we need. For years experts have been saying we need to be less dependent on oil. The amount of Americans using public transportation is up and that is a good thing. If gas prices continue to rise than i think we will also see a change in the public transportation system. More buses would be run and probabley more frequently and that would make public trasportation less of a hassle than it is today. The way we are living today and the way i grew up is changing. We as Americans need to change our habits and way of living to save the planet! With gas prices rising the price of food and other essential goods is on the rise. I strongly believe that gas for the general publice should just do what its going to do, but for companies delivering mail, food, and consumer products should be given a break when it comes to gas. If gas prices are too high thats fine with me. I can manage to live my life without a car, but if it gets to the point where I can’t put food on the table, well then I think America is in trouble.
Comment by Rod
Jun 27th, 2008 at 9:46 am
$4 gasoline has not caused much change in the driving of Americans.
The threshold of pain from high fuel costs is very high..although Americans love to complain, they love and need the mobility.
In addition, the US is no longer the “demand driver” for oil. We will be the first to start cutting back, but so long as other countries subsidize their energy costs for citizens demand will be slow to wain.
We may well see $175 oil and $6 gasoline this year.
Comment by Shawn
Jun 27th, 2008 at 10:05 am
Perhaps investing in a vespa or other scooter might be a worth while investment, if you can find one that is. This will be a brave & more expensive new world.
Comment by Pat
Jun 27th, 2008 at 10:30 am
Reality is catching up to the U.S. China, India, and other booming economies are bidding up the price of oil like crazy as they buy every drop available. We have not yet really changed our habits; we continue to drive large SUVs, snowmobiles, motorboats, buy toys from China that take lots of oil to ship to our stores, etc. Our oil usage has barely budged so far.
A little truth (perhaps inconvenient to some) about oil companies: U.S. oil companies already spend 25% of the funds invested in alternate-energy research; and their after-tax profit margin, at roughly 8%, is far less than banks’, many retailers’, or, say, trial lawyer firms (though Congress isn’t talking about windfall profit taxes for those businesses…)
Our government gets in the way of cheaper energy most of the time. Case in point: in 2006 ultra-low-sulfur diesel was mandated for U.S. sales (a good move environmentally). However, go do your own research about how many oil companies and refineries were granted permits to convert over to producing the stuff: hint, we are currently shipping much of it in country instead of making it here. So ironically, our government demands something, refuses to let it be produced here, makes our dollars go elsewhere, exacerbates scarcity, and causes tankers to burn more dirty diesel to bring us clean diesel from elsewhere. Also, diesel is taxed higher than gasoline here. All part of why diesel (and gas) are so expensive, though of course in Europe they pay twice as much.
Comment by ken
Jun 27th, 2008 at 10:40 am
If we as cont down this path, of no no not in my back yard, it will kill bambi, WHO CARES, we let the these sand rats till us how much we are going to pay for oil. HMMM i do think that we where the ones drilled for that oil in the early 50s abd now we have to pay this high prices. And yes BUSH is a dum ass, we make money with these oil be high, so why should we care he does not have to fill up hes car we do.
And to this env people shut up about the AS oil, we need it or do want to go back to the 1800 when we had to take a horse to the story, oh want it makes waste to much green house gases. WAKE UP PEOPLE we did this and we are going to pay this prices. AND guess what, if oil kepts going there will ot be any airlines to fly your happy but any where, and no green house gases just planes going weeds uparound them Welcome to the 21st century, sad
Comment by Steve S.
Jun 27th, 2008 at 11:32 am
I agree with Bill’s comment. Not all of us live in the big cities that can afford to have mass transit. I live in a small town of about 1,000 that is basically at least a 40-mile drive to the larger cities and towns where the stores are to buy what you need. I chose to live away from the bigger cities to be closer to where I work, roughly two miles away, since that is where I’ll be commuting to most of the time. However, many of the folks I work with are getting hammered by the higher prices because of gas prices because they don’t live in town. Keep in mind that these folks are not driving larger trucks and SUVs every day, but small fuel-efficient cars and are still $60 to $80 to fill these up. Until all of the possible alternatives to oil and gas are truly viable and affordable, our elected officials need to allow drilling in ANWR and offshore. Until the day we as a country can move away from oil, we need to make sure we can supply what oil we need ourselves.
Comment by Cats
Jun 27th, 2008 at 11:49 am
Contrary to the Democrat Party and Environmentalists line, speculation would begin to drop the moment Congress lifted the ban on offshore drilling, ANWR drilling, oil shale production and nuclear power plants. Speculation would continue to drop as the processes move along towards actual production. There would not be a decades-long wait for the effect of a new energy policy on prices. And, many industry experts claim that new production could, in some cases, be available in as little as 5 years. If we fail to increase domestic supplies, the economic future of this country is in grave jeopardy.
Comment by Paul E. Bennett
Jun 27th, 2008 at 2:43 pm
It is not the OIL Companies that are causing the rise in prices. The Oil Companies do not own any of the Oil that gets pumped. It’s the Countries that are part of the CONGLOMERATE known as OPEC which stands for the ORGANIZATION OF PETROLIUM EXPORTING COUNTRIES is a block of countries that RESTRICT THE SUPPLY of OIL, the OUTPUT. THEY SET THE PRICES ON A DAILY BASIS counter to what you have been told in the NEW MEDIA. It is all about Supply and Demand. Read your BASIC Economics 101. Saudia Arabia, Kuwait, Venezuela, Nigeria,Iran, IRAQ,United Arab Emirates, Libya, Ecuador, Indonesia, Algeria, Angola and Qatar. I am not sure but it would be worth looking into if Russia and Mexico are also members of OPEC. OPEC is based is Vienna and USES OIL as a WEAPON. The Oil Companies only work to FIND Oil and Pump it out of the ground like a sub-contractor.
Get your facts straight. OPEC is a CARTEL & the Shieks are VERY VERY WEALTHY. Beyond what you can ever believe.
Comment by Shane
Jun 27th, 2008 at 2:52 pm
Congress should cap the price of oil. Push carmakers to make more plug in hybrids and fuel cell cars. Wall street is BLAME for this there is not a reason to cause oil prices to be this high. If the goverment would make all there vehicles fuel cell look at the amount of gas that would not be used. Congress needs get out of bed with the oil companies and stop this. It’s there fault that we have become dependent on the middle east. The U.S. needs to become more INDEPENDENT and take care of it’s self!! Take the goverment away from business.
Comment by kurt
Jun 27th, 2008 at 3:06 pm
I was looking forward to less people on the road, but apparently everybody else was thinking the same thing….people are complaining, but the markets know when they have sopped up all extra cash laying around. That time has clearly not come yet. Traffic is no lighter. When you are surprised that you don’t see too many people out and about, that is the indicator that the limit has been reached.
Comment by chuck
Jun 27th, 2008 at 3:21 pm
$7 for gas.
All right here are the consequences.
First off the larger metromarkets such as New York City,Chicago,Houston,Boston metro areas will absorb the costs and shocks. Now non-competetive markets such as Vicksburg ms where competition for retail gas prices is lacking. Even though Kroger is putting in thier gas pumps here the cost shocks here are going to be hard.
Not all small businesses will be able to aborb the cost shocks of retail gas prices. A community like Vicksburg ms which has an extreme weak retail sector and is now feeling the pinch of the housing downturn. As a result of 6 or 7 dollar costs of gas the consequences will be more businesses will close and even some may move out of the harbor project. Now the town is acutally paying the price of a selfish business culture that didn’t believe in free markets and didn’t allow in more competiton. Also the with higer price of gas,the gaming sector here could see a lot more pull back in gamblers coming into this market. It would drive the tax coffieurs lower. With two gaming boats in bankruptcy court could a higher price of gas trigger a third? But the shocks in the varied business sectors are going to be profound. Those that are in denial on the issue or greedy don’t see the reality of the consequences to the consumer.
Comment by Iagan
Jun 27th, 2008 at 4:24 pm
I tend to agree with gas prices will stay right around 4 dollars per gallon. Let’s not forget the oil companies or the people that drill for oil will not let this get out of hand to the point where they are going to loose money.
I think the US Goverment better take a good hard look at the US Economy and ways to help the US People. I am all for helping other countries BUT if the US Economy goes under then we will not be able to help anyone.
All I hear and read about is countries and people quick to place blame on others.. but what I fail to see is someone standing up and saying this is how we can fix it. With all this technology I cannot believe that we cannot drill in Alaska in off the coast in a way that we do not harm the environment.
Forgot all the politcal posturing and this insane posturing and fix the problem.. this is not just a US problem.. this is a global problem.
Comment by luke
Jun 27th, 2008 at 4:54 pm
“$4 gasoline has not caused much change in the driving of Americans.”
This is completely false - Americans have changed their driving habits more drastically this year than they ever have. People are driving less.
This is a blessing. Americans can do better than being reliant on noisy, smelly, ugly, polluting automobiles! We’ve got to figure new ways to work with the earth, to use the infrastructure we have in place for as long as we can until we can work out new methods for dealing with the inevitable crunch in resources caused by decades of our unsustainable (and greedy) consumption habits.
You can put food on your OWN table - it grows out of the ground, you know.
One thing is for sure: the wealthy are going to stay wealthy - and they’re going to keep driving - and the rest of us are going to make it work for ourselves with a lot of effort and hard-nosed change! It’s time for a new life to emerge for Americans…there MUST be other options than the suburban/commuter lifestyle because we’re running out of ways to afford it.
When you live in a nation that consumes more than it produces, your quality of life will eventually decline. You’re no longer independent.
Comment by Squellin Loud
Jun 27th, 2008 at 5:06 pm
Many of you simply want to blame Bush for EVERYTHING!
Get over it! Obviously, many of you do not understand the power structure of this country.
Laws START in the House of Representitives — That is the Democrat house with Polosi; THEN it moves to the Senate — Again, the DEMOCRAT senate; Blame Harry Reid!
This congress is the MOST DO NOTHING people to EVER take office. When will THEY get sstarted???
You want relied??? Call your Congressman and Senator; quit blaming Bush; he can propose NO laws from his office.
This Congress is quick to hold hearings with the CEOs of Oil companies; when will someone actually understand the REAL cause of all this mess; it ISN’T the Oil companies. Congress has REFUSED to allow them to drill or even to use the capped oil wells that are already in place.
We have MORE oil than Saudi Arabia; but NO ONE wants to allow the companies to actually drill for it!
The US Energy policy is to blame; we have the ability to work through this; but NOT on this path of dependence from those who wish to be our enemy.
There has NOT been a new refinery built on over 30 years. Now they are too expensive and I doubt the oil companies would even want to build a new one at a price around $10 BILLION dollars with the small profit return they are held to.
Let’s figure out a REAL relief for energy; MORE WIND Turbine generators, more solar panels.
Comment by Patrick
Jun 27th, 2008 at 5:37 pm
Let the prices increase. The free market economy works when you leave it alone. If people can afford $4 gas, then prices will remain there. If they cannot, demand will decrease and prices will drop. If we force the prices down, people will use more and there will be lines at the pump. Simple concept.
Comment by JNH
Jun 27th, 2008 at 5:48 pm
OK Let’s see here…we wanted to drill in Anwar but no the environmentalists got in the way. We want to drill off shore…heck China and Cuba are doing it in the Gulf…but nope we can’t…again the environmentalists. So blame who you want…but the Republicans have been trying to do something for many years now but the extremists keep getting in the way.
So exactly how do you want to us to reduce our dependencies?? Could Bush step in and open the reserves…probably but it won’t help. Could we get a tax holiday…yep but that doesn’t mean the price will go down it just means they can keep the price where it is and increase profits. States, counties have tried tax holidays and it doesn’t change anything. Speculators are causing the greatest problem at this point.
Everyone loves to complain but the truth is we have done nothing. No new refineries because no one wants them in their back yard. Yet those same people love to complain about our dependency and our gas guzzling SUVs. You can’t talk out of both sides of your mouth. You aren’t going to get people to stop driving SUVs and pickups…it’s just not gonna happen.
Comment by gary
Jun 27th, 2008 at 7:42 pm
Wow, how blind can some of you be? Since the 1980s, the domestic output of oil has been cut in half, mostly by ecofreaks suing to have any latest swamp declared an endangered area to stop drilling. This is what has put us into this situation. And yes, “Bill”, that will be 10 million more people out of work. Who has done this? No, “American Man”, not Bush. Everyone says gas was $1.80 when Bush took office. True. However, gas was also $2.00 when the democrats took over congress a year and a half ago. Nobody wants to acknowledge that one, though, do they? Many people, myself included, live in areas where there is NO public transportation (rural Ohio aka “flyover country”), and driving 40 to 60 miles each way to work is common. Don’t think for a second that the dems are sitting back laughing, waiting to gain even more power in November because too many people are misplacing their anger. Open up drilling in Oklahoma, the Gulf, and Alaska, and those gas prices will plummet almost immediately!!
Comment by Brian
Jun 27th, 2008 at 8:27 pm
It would be entirely possible that this country would be well off with high gas prices if the credit cards were put away. Pay them off, cut them up, and live happy. People would be amazed at what they could afford without CC payments and even car payments. They could save money to get the nice TVs and furniture and cars instead of using credit. Do away with credit, and you do away with money problems.
Comment by monkefurbal
Jun 28th, 2008 at 3:41 pm
I think $7 easily by 2010. I was in Canada last week and paid $6.65 a gallon(in US gallons). EU is already over $8 a gallon in many places. The Vespa’s don’t work in cold climate States so forget that idea. Oil companies don’t control the price of oil either—it’s really the oil producer cartels that do. And the speculators don’t help either. China and India growing rapidly–there’s where all the surplus oil of a few years ago has gone. It won’t get better for the next several years. What have I done? Well, I’m not a whiiiining liberal blamer so I know Bush isn’t the problem. Although he and Congress are to blame for the Ethanol fiasco that has raised food prices worldwide. NO….my solution 4 yrs ago was to load up on a bunch of oil, energy, ag, mining stocks. Many are up 500% since then. All are up more than 100%. I have enough money to buy gas for the next 100 years at most any price. I didn’t get mad or blame or whiiine. I got even.
Comment by dodobird
Jun 28th, 2008 at 3:46 pm
Democrats are totally to blame.
Comment by Chris
Jun 28th, 2008 at 9:11 pm
None of you seem to get it. $200 oil is cheap. We have dominated the world for so long and the tide is changing. Since the Brenton Woods Agreement in ‘71 we have had nothing behind the U.S. dollar other than our military. The times are changing faster than you think. Gas is just the begining. Getting out of debt right now is stupid, you need to be grabbing things of value, ie. Gold, Silver “real Money”
Comment by Brian
Jun 29th, 2008 at 1:47 am
haha. I can seen the Terrorist smiling now. They don’t have to target us when the oversea’s investors are doing their job. Bush is sitting back and loving this. He probably set this up to send a “slap” across the Democrates who for years wanting to protect our environment from disasters. Do you really want to sit on the Jersey Shore and see an oil drilling platform from a distance. Oh lets not forget, when the little spills happen and we are banned from swiming in the ocean. I am against offshore drilling b/c it will take years to see any benefit!! Oh yeah, 2010 prices will be $7 bucks. Oh lets drill offshore to lower the cost. Yeah right! BIG OIL will make every excuse of “unknown costs” to drill offshore and gas will rise even more or drop a penny or two. Can you see Obama Bin Laden smiling this winter when record deaths across the USA b/c most American’s won’t be able to heat there homes. I am looking at 5 bucks and rising for home heating oil!!! No one talks about that!
Comment by steven
Jun 29th, 2008 at 10:00 am
why don’t we try drilling for a change, instead of forcing the oil companies to drill in very deep water or in areas that geologists say is a very poor place lets let the oil companies swap the land the government is forcing to drill on for land they want. Think of what it would do to the economy if instead of sending billions over seas we kept it here, the job increase would be substantial.
Comment by andy
Jun 29th, 2008 at 12:36 pm
Instead of speculating the hipe of fule price, why not somea one talks about public tarnsport, renewable energy sources, solar energy. And most importantly why to trade oil & food. There are the basic necessities of human being.
Think abt the world where people survive whith income less than a doller $.
Why just US. Trading of oil by few peoples making other’s life miserable.
Comment by Gary
Jun 29th, 2008 at 8:21 pm
The Federal Reserve needs to shock the world and Raise the Federal Funds Rate by a 1/2 % point at their August 2008 Meeting. This will strenghten the US Dollar and Oil prices will plummet. On top of raising interest rates, The Federal Reserve should buy US Dollars to futher strengten the dollar. This will burst to oil bubble.
Comment by Tim Tarr
Jun 29th, 2008 at 8:30 pm
You Jack-asses (Demorcats) and leftee Republicats (Bush 1,2 and McCainnites)!
You gave China MFN statis. Low cost imports to make inflation low in US.
Now it’s time to pay .
Those who don’t learn from history will repeat it again and again!
Nuclear Power now, better 20 years late than never!!
Comment by Johnboy
Jun 29th, 2008 at 10:04 pm
FIRST, to the poster who bashed Bush…it takes little thinking to just blame someone. That someone YOU blamed might be PART of the problem. However, I didn’t see CLINTON do anything about our dependence for eight years, neither did Reagan, Carter or anyone before that. This is a problem we SHOULD have been planning on for some time. IN ADDITION, do these speculators ENJOY ripping apart their country? Is it funny? There is NO reason for gas to be where it is right now…ITS ALL smoke and mirrors. SOMETHING is going to need to be done or the middle class is HISTORY! Increases in health insurance, home insurance, etc ALREADY outpace our raises each year. Coupled with rises in gas and items we buy it is going to break them soon! Of course…maybe that is what the government wants…
Comment by Ames Tiedeman
Jun 29th, 2008 at 10:09 pm
This post is in response to American Man:
Why are you blaming Bush for all of this? Why are you blaming Bush for Katrina? I did not see any mass starvation, murder, looting, or uprisings in Iowa from the recent floods. Could it be the people of New Orleans were incompetent in managing their own affairs? Wasn’t Katrina a local and state issue and not a Federal issue?
Further, why not blame Jimmy Carter for high oil. After all in 1978 he said, and I quote. “The United States will never import more oil than it did this year, 1978″ He never got us off oil. He lied.
Wake up! Stop blaming Bush for problems he did not create. And no the Iraq was it not why oil is 140. There have been no new major fields discovered in 40 years! Wake up Neanderthal Man!
Comment by tb
Jun 29th, 2008 at 10:10 pm
and many on the left still dont want US to drill, would rather be held hostage, they say it wont help tomorrow, well what will?…start drilling before it is taken by someone else….wake up!
Comment by Marc M
Jun 29th, 2008 at 10:11 pm
The mayor of NYC did nothing during 9/11 except put his face n front of the camera.
This is a man who put the anti-terrorism HQ IN THE WORLD TRADE CENTER AFTER IT WAS PREVIOUSLY ATTACKED AND SWORN TO BE ATTACKED AGAIN. As the HQ sat under rubble and he searched for a camera to put his face in front of the NY Fire department risked their lives,
it amazes me how Giuliani was able to fool people into thinking he was some sort of a 9/11 hero, his approval ratings were at an all time low as he squandered money on endless police officers salaries that were supposed to be part of a 1 time grant for police gear.
The next mayor inherited his financial mess.
Comment by David
Jun 29th, 2008 at 10:12 pm
Truth is, I hope gas hits $7 a gallon. Not because I want to see the poor put in a worse position than they are, but because it’s clear that it is the ONLY thing that’s going to save us from destroying ourselves. We (myself included) drive SUV’s and at drive them at 80 miles per hour. We don’t car pool, public transporation is out of the question, and we don’t want to spend the money on alternatives.
I used to feel sorry for the American auto industry. I’ve only ever bought American made cars. But they dealt with this in the 1970’s. Hindsite is 20/20 and they didn’t look back and see this coming. The auto industry should have been prepared for this by having invested heavily in new non-fossil fuel alternatives, but they didn’t, they made token efforts to prove they cared about the environment with intention of a practical large scale marketing strategy. It’s their fault not mine fault and we sleep in the beds we make.
I’ll bet we have hydrogen fuel cell cars, practical electric cars, and Ethenol at every corner within months of $7 a gallon gas The beauty of being a capitolist society is that when the price is right, we’ll work anything out. I pray for those that will struggle this next couple of years, but it really will solve itself and when it does, the oil barrons (U.S. and international) will be bankrupt, shocked that their industry had dried up, unaware that it was their own greed that destroyed them but their fall will reduce terrorism & help save our planet.
Comment by Marc M
Jun 29th, 2008 at 10:12 pm
We do not need to change our way of life.
Congress needs to change theirs.
Comment by Jason
Jun 29th, 2008 at 10:13 pm
This is why gas is going up so fast. Get ready $7 is only the beginning. It will be $7 in less than a year I bet.
http://www.theoildrum.com/
Comment by Daniel
Jun 29th, 2008 at 10:14 pm
Bush is NOT the problem. The Democrats in Congress is the problem. They are blocking everything.
Comment by jason
Jun 29th, 2008 at 10:15 pm
I’m tired of people blaming Bush saying he is doing nothing to lower gas prices. Just what in the hell can he do?!? He’s already trying to convince the tree hugging brain damaged democrats that we need to drill in Alaska and off the coast, but they won’t let it happen!
I say it is the democratically ocntrolled legislators that are responsible for the situation we are in regarding gas prices. Aren’t they the ones the write the LAWS!!
Wake up and open your eyes America. It are the democrats that are causing our gas prices to soar!
Comment by Brazito farmer
Jun 29th, 2008 at 10:17 pm
All this talk about cars & transit is good but here’s where the truth lays. Everything you buy at the grocery store is trucked in and little comes by rail. Every farm and processing plant uses fuel, mainly diesel. The milk is trucked from dairy to processing, then again trucked to the store. The cattle feed is farmed with diesel powered equipment. Hang on to your undies for $10.00 gallon milk and $12.00 six pack beer. Beer processing uses grain. We better be worrying about groceries pretty darn quick. 1st. thing we ALL need to do. Check labels before buying anything! If it aint made in the USA-DON’T buy it if you can help it. Good luck folks and hang on for the ride of our lives! God Bless the USA!
Comment by That 70's Guy
Jun 29th, 2008 at 10:18 pm
“Comment by Norman Anderson
2008-06-27 09:16:56
With all the talk about off shore drilling etc. Why don’t the feds bring back the
55 MPH speed limit, and enact it immediately?”
Maybe because the politicians in Washington D.C. remember how unpopular that Federal mandate was the last go round? I know that if one of my local politicians proposed such a thing I would vote against them the next time they are up for re-election. I lived during those times and can tell you for a fact that nobody drove any slower with the limit at 55 mph than they do now with my States speed limit at 70 mph. All it did was get people to buy CB radio’s so that they could go as fast as they had before but would (hopefully) know where the police where at. Later people bought radar detectors when they came along to do the same thing.
Comment by Bill
Jun 29th, 2008 at 10:18 pm
I hope to see these oil speculators in a ’soup line’ and without jobs for the recession and eventual depression that they’ll be causing.
Comment by Jim
Jun 29th, 2008 at 10:19 pm
Oil prices will stay high until and only until alternative fuels start to take hold. Then prices will fall until and only until the alternative fuel choices become uneconomic, thus preventing their widespread adoption.
And both people and government are sufficiently shortsighted that the oil cartels and oil industry will get away with it…again.
Hey! It worked in the ‘75 oil embargo, it’ll work now.
Comment by Steveo
Jun 29th, 2008 at 10:20 pm
I always notice that the Bush bashers never seem to notice that all this occurred after the Democrats took control of Congress, which was supposed to save us from Bush. I thought the Dems were so GREEN. Environmentalists WANT $8 a gallon gas. It’s supposed to make us car pool, take mass transit, buy scooters, WALK, etc.
Comment by kevin
Jun 29th, 2008 at 10:20 pm
Obviously you folks talking about people taking public transport don’t live in rural america (fly over country to Obama and the Dems). In the medium-term the Dem Congress will have to cap the price of gas and susidize the cost… otherwise the economy will plummet. I hope this rookie Obama has more in his head and mouth than “Yes We Can’ and ‘Change’.
Comment by Brett
Jun 29th, 2008 at 10:22 pm
When the Israeli & Iranian war starts; it’s going to get a lot uglier than $7 a gallon gas. Save your money, the market is about to go into the toilet. The only thing Congress cares about is cashing those big checks from big oil. It’s pretty sad that our society cares more about animals than human beings. SAVE THE HUMANS !!
Comment by Steve Yates
Jun 29th, 2008 at 10:23 pm
We can blame high gasoline prices on our politicians. The resource is here for a reason-use it. Common sense is in short abundance at all levels of government. Cut out all subsidies and let the market do it’s thing. It’s smarter and it even has common sense.
Comment by Francis
Jun 29th, 2008 at 10:24 pm
Where I live in Marshall Islands in between Guam and Hawaii, gas prices are $6.50 per gallon in the capitol and the other rural area it is $7.10 a gallaon. Well Looks like our friend U.S. is catching up.
Comment by Brenda Coury
Jun 29th, 2008 at 10:25 pm
Forecasting is not news. Please keep to news and facts.
Comment by mike
Jun 29th, 2008 at 10:25 pm
We will see $200 a barrel and $7 a gallon before the year is out. I recently filled two 2000 gallon fuel tanks that I have not filled since the early 90’s. I am going to sit on this fuel, and when I need it, it should last me a few years. It is going to get bad and feel for the familys that this is going to hit hard, but what can we do? We can not drill ourselves out of this mess, I guess it is time for the SUV’s quad cabs and big 4×4’s in the city to be done away with. I will tell you one thing, we better brace, because the collapse of America is soon and we will be living like the Soviet Union after there fall before to long.
Comment by Del Ross
Jun 29th, 2008 at 10:25 pm
If Israel strikes Iran within the one-year window that a former spy says it has before Iran has “the bomb”, $7 gas or even $17 gas will seem like a bargain! Ya think President Obama could handle that????
Comment by Adam
Jun 29th, 2008 at 10:27 pm
[Q]$4 gasoline has not caused much change in the driving of Americans.
The threshold of pain from high fuel costs is very high..although Americans love to complain, they love and need the mobility.
In addition, the US is no longer the “demand driver” for oil. We will be the first to start cutting back, but so long as other countries subsidize their energy costs for citizens demand will be slow to wain.
We may well see $175 oil and $6 gasoline this year.[q]
God help our children!
Comment by Steve
Jun 29th, 2008 at 10:30 pm
It doesn’t really matter what the price of gas would go to. The average person is most likely using their credit card to pay for gas, so there minimum monthly payment does not change much if any. This just creates another credit problem to deal with.
Comment by Anna
Jun 29th, 2008 at 10:31 pm
$4 gas is hurting my family now $7 would kill us I live in a small town in Arkansas and there is no mass transit system at all at $7 our town would shut down most families here are at or below the poverty line I work for the local car dealership and let me tell you car sales are dead to years past I worry that my job will be gone if gas gets any higher it will become a question of pay the credit card bills or buy food, well food has to get bought
Comment by Steve
Jun 29th, 2008 at 10:34 pm
American Man:
What makes you think that the president of the United States has the ability to affect everything.
Also, if the idiots in Congress had used the millions of dollars in earmarks to do politically expedient projects in New Orleans instead of doing what the Army Corps of Engineers told them to do (fix the levees), the hurricane might not have been as disastrous as it was.
In short, there is enough blame to be passed around. You ought to read Dick Morris’ book “Outrage”. It pretty much demonstrates that we have a lot of criminals in government on both sides of the aisle.
Comment by Margo
Jun 29th, 2008 at 10:35 pm
Yes 55 mph will definitely help. I am amazed at how fast people cruse the streets never considering that they’re burning up gasoline far faster than they have too. In general, people are silly, irresponsible and impatient. They get up at the last minute, leave at the last minute and try to make their commute in record time on busy highways and streets risking their safety as well as others. It’s this “nothing better change and I ain’t gonna change cause I’m an American and I ain’t gotta change for nothing and nobody” attitude that got us in this mess in the first place. And the primary idiots harboring that Neanderthal mentality are Bush and Chaney. Lord I’ll be glad when they get the hell out of the Whitehouse. Nothing is ever urgent or even important to us “Americans” until it’s a freaking crisis and then everybody cries “do something, drill here - drill now and save our inattentive butts”. CONSERVE and invest in alternative energy and save yourselves. Santa’s not on the way so suck it up. PS: I drive 70 miles roundtrip to & from work, stop along the way to get what I need and pretty much walk or ride my bike to the stores and shops close to home.
Comment by Rich
Jun 29th, 2008 at 10:37 pm
My solution was to convert a gas powered car to 100% battery-electric power. I live in the DC suburbs and it gets me everywhere around that region- Annapolis, DC, and Baltimore. I use the train for longer distances. I haven’t purchased gasoline in months.
Comment by Giving up
Jun 29th, 2008 at 10:38 pm
Already the price of gas is more than I can afford. As a disabled American, on extremely limited income, I have to decide weekly to either pay for necessary heart medications, or put gas n the tank. Living out in a rural area with no public transportation, it is a no win situation for the poor like me.
Comment by dan
Jun 29th, 2008 at 10:40 pm
there is no reason for that high of Gas. this is enron all over again.
Keep driving to a minimum and make the greedy leeches eat thier overpriced oil contracts.
Comment by Jessi
Jun 29th, 2008 at 10:41 pm
To Rod & John:
You must be one of the lucky ones that lives high, mighty, and beyond. Gas prices have been killing my family’s food budget, clothing budget (for the kids for school) and has completely cut out all extra activites….that includes even taking the kids to see the free movies put on by local theaters for the summer. It costs too dang much in gas to get there and back. Rod, yes, the prices have changed a lot in our lives. No sports for the kids, no garage sales to find bargain clothes for the kids, no swimming at the lake, no visits to the grandparents every weekend, no television b/c the satellite money has gone to gas, no new sandals for summer, no birthday parties, etc - it all stinks this year!
We live in a town of 500 people - the kids’ doctor is 35 miles one way, my school is 55 miles one way, church is 11 miles, my husband’s work is 15 miles, my parents are 20, his parents are 30, a grocery store (other than the higher-than-I-can-afford-grocer here in town) is 35-40 miles. Heck, our gas station in this one horse town is even 15 cents higher than surrounding towns.
And, John, you thinking rising costs are a good thing? Will you please fork over the money to those of us who can’t take public transportation, carpool, or otherwise get to work, the store, or the doctor just so we can fill our tanks up with what you believe is a good deal?
Comment by Ed
Jun 29th, 2008 at 10:44 pm
If the oil producing countries say it is supply & demand, and speculators say it isn’t them, then who the hell is it? Why has the price of oil gone up over 50% in one year? I think this is the root cause of the economy going south. IF this isn’t a reason to release 50% of the feds oil reserve, then when is it? I don’t think you can put much blame on Bush. I think 90% of the blame should be on Congres. What are they doing in Washington? Sure not working for the American people!
Comment by Robert R Smith
Jun 29th, 2008 at 10:44 pm
well here we go with the ole I tol ya so. See many years ago someone once said nothing lasts forever or what goes up must come down. This is inevitable in everything from the price of something to the political and governments thats run on peoples lazy and sorry butts wanting a free ride. We should always have been thinkin ahead instead of for the day like Aesop and the fable of the ant and the grasshopper. We in the United States are all grasshoppers in the world. Not an ant to be found unles it fills our backpocket. We do not care if or what our world will be like, or if it even lasts. I can’t wait to be gone from this selfish world and it s indignant greed of self fulfillment and pleasure, not just here but in every country.
Comment by sjp
Jun 29th, 2008 at 10:45 pm
obviously no one posting so far on this column works with there hands. welcome to the real world of labor, it now costs twice as much to get to the job site, have lunch, buy tools, buy product and maintain vehicles. while on the other end fewer jobs are available because of the cost of materials, labor, planning and just plain backup due to costs. i’ve been in the trades in wisconsin since 1983. at this time the work load is as low as i have seen it due to those factors and getting worse and i am actually lucky as my company is busier than others. 5, 6, 7, dollars a gallon brings this countries production lower with each step, meaning less hours and less pay for these higher costs. also anyone who says americans haven’t changed yet, has not been out on the open road, traffic has already decreased and speed has fallen at the $4 mark even in the trucking department, it hits $5/6/7 a gallon and we will see shutdowns, stoppages and strikes. now our choices seem to be drill more and continue to rely on oil or find a new direction in energy and transportation that helps not only the urban but also the rural areas of this country.
Comment by Simon
Jun 29th, 2008 at 10:45 pm
At $6 or $7 a gallon, this country is going to come to a schreeching halt. Europe can handle it, with their 1.0 liter engines, but we can’t. You’ll be seeing a lot of Yukons, Expeditions, Escalades on the side of the road, out of gas :).
I think it may help highway congestion, though, because maybe then people will give up their castle that’s 50 miles a way from their work, and move closer to their job. This country relies on transporting everything, and for great distances. Things are going to get ugly, especially if the increases are passed off to the consumer, which they are. Recession? I think it will be worse than that.
Comment by Rawdogg
Jun 29th, 2008 at 10:47 pm
I agree with bill 100 percent, mass transit is not availible in the area i live in, so what will happen when ppl cant afford to go to work??? such places like wal mart, mcdonalds, home depot, lowes, ..mainly retail, fast food, service station workers…these places do not pay well enough for most of their employees to afford 5,6,7,dollar a gallon gas….will the country come to a stand still???? will ppl finally say ENOUGH!? will truckers strike? i know most ppl say drive less….well for a lot of people that is not an option, oil is killing this country, something is gonna have to gove, i just hope the president or congress will step up, or the little man (who is the backbone of the country) will be in huge trouble
Comment by Any
Jun 29th, 2008 at 10:47 pm
Thank you democrats for obstructing drilling our own oil of the coast and Alaska. Don’t BS me with environmental crap since the alternative is that they will be drilling in Siberia and hotbed Middle East or polluted Nigeria.
If you really care for the global environment you allow drilling HERE which will be done much much more environmentally responsible.
I will vote whoever is not that moronic. So guess it will be McCain.
Comment by John
Jun 29th, 2008 at 10:48 pm
I for one am sick of the wacko socialist environmentalists who use inuendo and dubious data (the fear of climate change) to drive their agenda. The problem with oil is not that there isn’t enough or even that its destoying the planet, but that it is being used as a tool of war by some oil producing countries, used by unscrupulous people in our own country to further their neo-social/political agenda, and used by others who are piling on for sheer greed. This is what has brought us to $4.50/gallon (and probably higher) fuel. I just hope that smart Americans will wake up to the manipulation and put a stop to it before its too late.
Comment by Eric
Jun 29th, 2008 at 10:48 pm
Sigh… is it just me or do all of these reports come from investment companies? I wonder if they have any incentive to keep the prices high. It’s like they are all trying to out-do each other. Every day, the future price of a gallon of gasoline goes up by $1-2.
Comment by Mark
Jun 29th, 2008 at 10:49 pm
Speculators talking about oil spiking up has been one of the factors in oil actually going up at this ridiculous rate. But the bigger reason, in my opinion, is the fact that WE in the US are not drilling enough oil here. We have ANWAR, the Atlantic and Pacific Coasts, Oil Shale in Colorado and the Dakotas, yet we are not producing a whole lot from there because of inaction on this Democratic-lead Congress’ part (Mainly appeasing to the tree-huggers and all). Though I agree that alternatives need to be developed (and not ethanol, I’ll get into that in a minute), we need to drill our own oil and natural gas while we develop these alternatives. For us to be spending these high amounts on Foreign Oil is insane. We should drill and subsidize our own oil and tell the Saudis to take a hike. I’m willing to bet anything that if we were to drill our own, that oil prices would plummet because of it (because the US wouldn’t have a need for foreign oil). It just makes sense, while developing clean energy alternatives, we should drill our own oil.
Now, with ethanol, food prices have only skyrocketed, and while initially a good idea, now it is just not practical. The world food supply is getting lower and products that are used to produce ethanol such as sugarcane, soybeans, and corn are only contributing to that factor. The ethanol production should come from switchgrass or biowaste or not at all. Corn, soybeans, and other foods that are grown should be used for just food now.
Comment by Real American Man
Jun 29th, 2008 at 10:49 pm
It’s funny how we all spend ourselves silly, during the best economic times, without so much as a single positive action or comment toward our gov’t (Democrat or Republican) and when things get a little hard, not a board can be found without some blame for Bush.
Do us all a favor. If you can’t afford teh gas, stay home and read a few books so you can understand how we got here.
Is Bush responsible for the price of gas in Europe? Taiwan? Anywhere else?
Comment by MM229977
Jun 29th, 2008 at 10:51 pm
Analysis by CIBC Worldwide equals garbage. I remember everyone rushing to buy over inflated priced homes several years back due to the fear that housing would continue to climb to even higher unaffordable prices based on “fear” analysis made through speculation. Well, we all have now seen what has happened there, and those unfortunate folks that listened to the “fear” analysis of the speculators are now in foreclosure, or taking losses in the hundreds of thousands in some cases. Trust lessons in history, not speculation from groups like CIBC Worldwide. $7.00 per gallon gasoline in 2 years? Pigs will grow wings and fly before that happens.
Comment by Rob
Jun 29th, 2008 at 10:52 pm
$7.00 per gallon of gas. Let’s not forget that this is only part of the issue. With the rising cost of oil comes the rising cost of everything. People will not be able to afford to live. Also, lets not forget that this will also result in increased crime rates as people will begin to steal that which they will not be able to afford. Look out U.S., we have only just begun to see the fringes of the bad times that lie ahead for our children.
Comment by betty
Jun 29th, 2008 at 10:54 pm
High gas prices is what this country needs right now. Less cars on the road will help save the planet, get more drunks of the road, which will bring down drunk driving accidents and bring down the cost of Insurance, bring down the speed limit,bring down the cost of automobiles, put smaller cars on the road, take teenagers of the road, put in more transit systems, and create less profits for the greedy oil giants so maybe one day it will be them we see begging on the street. Ha Ha would that be a laugh of what? : )
By the way American Man, shut the hell up. Your probably one of the people who drives a gas eater. I hope your tires go flat.
Comment by Don
Jun 29th, 2008 at 10:54 pm
Everyone wants to blame Bush for the price of oil…especially the socialist democrats and the media. What can he do? It’s congress that controls the price of oil. Oil is taxed by congress such that they make far more off oil than the oil companies do. Congress also controls the price by not letting us drill for American oil and forcing us to beg other countries to sell oil to us at whatever price they demand. Only the ignorant and uninformed blame Bush.
Comment by F. Turney
Jun 29th, 2008 at 10:55 pm
The U.S. House and Senate are ran by millionaires who are not able or willing to understand the financial pain of $4.00 gas. In an election year the stakes are too high to possibly lessen the anger of the voter by providing relief at the pump and in turn lose out on gaining the angry vote away from the other party. The party is more important that the people. Higher gas prices have turned into higher grocery, clothing, and utility bills. There is talk of $200.00 dollar a barrel oil and six to $10.00 a gallon gasoline and the U.S. Senate goes home for the holiday. Going home should have been out of the question. Staying late into the evening everyday until an answer to the cries of the american people was obtained is what our elected officials should have done. Speculative traders were deregulated by our elected officials and then boldly came on the national news programs and proclaimed that the days of cheap energy were over. Recently they were on CNN once again and now saying prices are poised to go as high as $230.00 a barrel for oil and $10.00 a gallon for gas. After years of stability in the energy market we now have prices climbing ever higher only after speculative trading was deregulated. We are getting fed information in the news that a hang nail on a south american native may cause a supply disruption. Its a money grab. Vote out the politicians that are letting us suffer.
Comment by Robert S
Jun 29th, 2008 at 10:59 pm
Folks, this article is not journalism. It is fear, presented as news. It is not reporting on what has happened, but what some analyst says WILL happen. So the media dutifully takes the speculation, throws it at you as if it absolutely, positively will happen, and reports it as news. Apparently many of those who have commented here have fallen for the bait.
I don’t have a crystal ball, and neither does this analyst. He is going on what the current situation is now. He does not (as does anyone else) know with any certainty how things will play out in the next two years. Any sort of speculation beyond the next few months is iffy at best, because anything can change at anytime. That’s how volatile the market is. The dollar could strengthen, Saudi Arabia could dramatically increase output, The U.S. could convince its Congress to allow drilling for new oil, demand could fall because of the high prices. Or conversely, there could be a disruption of some sort, whether by a hurricane in the Gulf of Mexico, which could cut off supplies in the short term by damaging oil rigs, or an Israeli-Iran conflict could occur, and Iran makes good on its promise to stifle supply.
The fact is - no one knows for sure. To report $7 a gallon gasoline is indeed-no-doubt-going-to-happen-with-certainty is poor journalism, and is designed to arouse fear. And shame on those of you who fall for it. Think for yourselves and do your own research, instead of falling for the bait the liberal media feeds you.
Comment by Dave
Jun 29th, 2008 at 11:00 pm
I hope gas prices go even higher so alternative fuels can be developed more price competitively. The sooner we get off foreign oil, the sooner we stop funding criminal Arab govenrments so they can kill us.
Comment by rich
Jun 29th, 2008 at 11:01 pm
Doesn’t matter what we do, or what George Bush does…we could have vehicles that get 100 mpg, instead of $4.00/gal. we would end up paying $12.00/gal. The Arabs can’t beat us on the battle field, but they can bring us to our knees at the pump. Democrats, Republicans, they all know what needs to be done…but they do nothing. It’s ironical that there is a new television program beginning entitled “Sons of Anarchy”. And, coincidentally, those same politicians who won’t do anything to make this great nation more energy independant, now want to take away our second amendment rights…or is it coincidental? Imagine the billboard: “Sons of Anarchy” starring: the people of the once great United States of America produced by: the U.S. Congress and U.S. Supreme Court directed by: OPEC
Comment by hkgonra
Jun 29th, 2008 at 11:02 pm
This is EXACTLY what Gore wanted to happen and we are all standing by and letting the politicians do it to us.
Comment by greg
Jun 29th, 2008 at 11:05 pm
Every one seems to be blaming everything on the Oil Companies, Politicians and Speculators. True, Oil Companies are reaping the rewards for their production they took risk on when the price per barrel was $20. True, Politicians have limited our abilities at home as well as not weaning us off of Foriegn Oil dependancy for decades. True, speculators have been over zealous now that the realization of other global economies are becoming more energy dependant. BUT THE REAL PROBLEM IS GLOBAL SUPPLY AND DEMAND. The World consumes 88 billion barrels of oil per day and only produces 85 billion. True, $7.00 a gallon may be a harse reality we have to learn to deal with. Another point, If we had a billion barrels of oil sitting in the Gulf of Mexico it would not make much of a difference considering that all of our REFINERIES are running at capacity and we have not built any new ones in 28 years. The only one coming on line any time soon took 12 years just to clear the governmental red tape so they can break ground in Arizona. No one to blame but ourselves for being so slow to act, now that is something we have grown accustom to from our Politicians!
Comment by Taos Jeo
Jun 29th, 2008 at 11:06 pm
So what do those of us who live in rural areas and have to drive 12-50 miles each way to get groceries or go to work do? No buses, and we are a tourist industry which means banker’s hours are unheard of, so no carpooling. We’re the lucky few…my husband and I each head in opposite directions on Monday morning, park our cars (I drive 20 miles and he drives 50) live at work, then return home on Friday afternoons. More commuting marriages? AND we have to have 4×4s to get home in the winter since we live a mile off the highway on a dirt road that stays snow packed. I find it hard to believe that technology has failed to come up with a more fuel efficient engine….was it big oil or the car companies that suppressed the technology?
Comment by Ghia
Jun 29th, 2008 at 11:07 pm
It’s amazing to me that everyone thinks we can’t come up with long term and short term solutions. I still believe that I live in the greatest country with the greatest ingenuity and creative people on earth. WE put men on the moon in less than 10 years, successfully created atomic fusion in less than 5 years and those were the governement programs. In the private sector we developed the semi-conductor which fueled the computer revolution and during WWII built Liberty ships in two weeks or less.
Open up the oil fields we have in Alaska and the Gulf of Mexico and you’ll see the price per barrell drop fast. Incentivise the development of clean energy alternatives and you’ll see the private sector kill themselves to get it on the market first. Lastly, let’s help a southern neighbor who has a whole lot of sugar cane but needs our manufactured goods by allowing Brazil to sell us their ethenol without a 50 cent per gallon tariff while they buy our brakes, our clothing, and other products. IF ONLY CONGRESS WOULD QUIT POINTING FINGERS AND BE REAL MEN AND WOMEN OF ACTION!
Comment by Ron-Independent Voter
Jun 29th, 2008 at 11:09 pm
We need a comprehensive energy policy that advocates efficiency, alternative energy sources AND accessing our domestic energy supplies where they exist including ANWR and the continental shelf. Now.
Obama is an elitist and arrogant when he’s ok with oil/fuel prices as high as they and stating that it’s “tough” when they’ve gone up so quickly. Many of his constituents are suffering from the high fuel prices we now have and I hope they realize that by election day.
McCain, while formerly against off-shore drilling, has seen that we have an energy crisis and resulting economic crisis that will require our country to use what energy sources it has for the good of the American people.
Comment by Esteban
Jun 29th, 2008 at 11:09 pm
DRILL HERE, DRILL NOW, PAY LESS!
1. Since we’ve always protected Israel and have pulled Iraq & Kuwait’s collective asses out of a sling, why are we note getting free oil for life?
2. Mexico (& probably Canada) owes us more money than they can EVER pay back — why are we note getting free oil from them?
3. Oil companies have spent over 3 decades to research on pulling oil out of the ground safely, cleanly with minimal environmental impact — DRILL HERE, DRILL NOW, PAY LESS!
Dimorats want you to have to spend more on a gallon of gas — they don’t care & they don’t have any solutions to the problem either. A vote for a democrat is a vote to bankrupt this country one citizen at a time.
Comment by diane
Jun 29th, 2008 at 11:10 pm
American Man….you are a friggin idiot!
Comment by Tracy
Jun 29th, 2008 at 11:10 pm
Doom, Doom and Gloom. .. Everyone thinks the sky is falling. The current fuel price bump is nothing more than Wall Street testing the market to find the maximum bearable limit for oil pricing. At $60 per barrel, they were making a tidy profit, gasoline was $2 per gallon and people were generally complaining, but not upset so much. An opportunity to make a test case for $3 gas came up during Katrina and it showed the market was willing to pay a higher price. Once used to $3 gas, a 33% hike was the next logical step. People are still driving and only a 5% drop of consumption has occurred. $4 has started to draw some heat, so prices may back down to $3.50 for a while.
So what does this mean? If the average consumer drives a 25mpg vehicle 15k miles per year, then you are spending about $2,400 per year on fuel at $4. If gasoline hikes up to even $7, that will be only $1,800 more per year for fuel. If the average person earns only $30k per year, they need only make a 6% increase in their salary over the next 18+ months to compensate for a hike to $7.
So no, the sky won’t fall if gasoline reaches $7.
Comment by Esteban
Jun 29th, 2008 at 11:10 pm
“American” man is an idiot.
Comment by Bill
Jun 29th, 2008 at 11:15 pm
Cable companies have price limits, our “government” should federalize the gas companies, and replace the limits removed by Bush and his people in 2001.
Gee, maybe if we stopped protecting all the Arabs, and stop fighting their wars for them, and stop letting them come here by droves, and stopped them from taking over our colleges,….oil would go down? The ONLY reason they have money, IS oil. They have contributed absolutely zip to the world, and humanity in 3000 years. Without it, they are nothing.
Comment by Jimmie
Jun 29th, 2008 at 11:15 pm
Our congress is a bunch of crap.
Comment by William
Jun 29th, 2008 at 11:17 pm
>>>When will someone make the call that necessities cannot be traded for ridiculous profit?<<< C’mon, when will people realize that this is a capitalist republic and not a socialist democracy? Obama and the rest of his socialist posse will start with something like oil, claiming unfair profit, move through all the utilities, then the grains and all commodities, then never stop. We already have enough of a parental, socialist government haunting us from FDR (and he only got around the Constitution by threat of his court packing plan). People need to wake up and realize that the government is not their savior, and that business runs in cycles. Those cycles cannot be suspended, a constant upward slope imposed, by fiat of some socialist president without having to pay the piper down the line. America is the land of freedoms; freedom of choice, freedom of economic contract, freedom of speech, freedom of the press. This is not some regime where they give you the other, weakness inducing freedoms; the freedom from fear, from poverty, from responsibility will only destroy our individuality, and our country.
Comment by mike
Jun 29th, 2008 at 11:17 pm
This whole oil price increase crisis has been a way of life over in other countries for years, take a look at Japan and England etc.. for years they have paid alot more for oil then us Americans do, hence this is the reason you do not see these countries driving around in full blown v8 trucks and suvs. I dont feel sorry for most gas guzzling vehicle owners as they dug there own grave buying one and wasting gas for years. We had back in the 80’s an oil problem, then instead of making cars-trucks more fuel efficient we started introducing v8 suv’s in the 90’s till now and pumping out more hp instead of fuel mpg, now after gas hits $4 a gallon we start to think that maybe its time to make more fuel efficient vehicles?? well what would have happen if we all drove fuel efficient vehicles back when gas was $1.50 a gallon a few years ago! would we be at $4 a gallon like we are now?
Comment by Jeffrey DeWitt
Jun 29th, 2008 at 11:17 pm
If Congress and the President would stop spending money at a rate that would make a drunken sailor blush that would strengthen the dollar and be a huge help, as would opening up more of our own resources for exploration and production.
If gas actually hits $7 a lot of people, including members of Congress (hopefully ALL of them) are going to be unemployed.
Comment by Tammy
Jun 29th, 2008 at 11:19 pm
I agree with Bill. I also live in an area where mass transit is very limited. Some of us need our cars to get to work. What about us? We have a do nothing government (all of them, including the President). Congress goes on vacation after doing what for the past year in a half, nothing. We need to drill and we need to do it now.
Comment by Ross
Jun 29th, 2008 at 11:19 pm
I highly doubt this…China and India are going to get called out shortly for the damage they are doing to the environment and their increased demand is going to go down.
Interest rates in the USA will go up so that the dollar is more valuable and other countries will look to invest in our country again.
If the government can stop handing out money to subsidize the losers of the economy this time around (the borrowers and lenders) then we can finally get into a recession and start repairing what is broken.
Comment by Mark
Jun 29th, 2008 at 11:19 pm
Comment by American Man says Bush is hiding. What the heck does the president have to do with gas prices, or hurricanes, or sneak attacks from terrorists? I’m so sick of hearing the blame Bush comments. Two things determine gas prices; supply and demand. If we cut back demand, prices will go down. If we find more oil, prices will go down. If we get off the oil teat we might get our country back and revive our economy, drive the Arab states out of business, and get us the heck out of the Middle East. But stop blaming Bush. The Democrats have had control of Congress for two years and they have done nothing!
Comment by Duane
Jun 29th, 2008 at 11:20 pm
The algore (he doesnt deserve capital letters) socialists in Congress are to blame for the sky high prices. They dont want to do anything about it but watch them go higher and higher to get people off the road and out of business. B. Hussein Obama is top of the list of socialists in Congress backing these prices. We need to drill here, drill now and pay less and push the socialists out of the way so we can survive!!!
Comment by jeff
Jun 29th, 2008 at 11:20 pm
you want gas prices to go up????? How do you think most of our crops are harvested and how do you think they get transported to your local grocery store. Rising gas prices affect a lot more than consumer goods, mail and food. Rising gas prices also affect the number of jobs in our country as businesses cannot afford to keep as many employees. Rising gas prices = high unemployment. Wake up liberals!
Comment by Phill
Jun 29th, 2008 at 11:20 pm
Part of the problem with high gasoline prices is tied to the law of supply and demand. There have been no new gasoline refineries built in the United States for several years. The EPA requirements have made it cost prohibitive for oil companies to build new refineries. While I agree that we need to protect the environment, I don’t believe that environmental concerns should trump our national sovereignty. Our dependence on foreign oil is placing our country in grave peril. Environmental concerns have prevented the United States from developing some very rich oil fields. They have also prevented us from drilling for oil in offshore areas that other countries are actively exploring.
The supply side of the gasoline price equation has cannot be solved in the short term. However, there are short term steps that can be taken to reduce the demand side of the equation. One immediate step that can be taken is to reduce the national speed limit to 55 mph. Driving slower will reduce the amount of gasoline that is consumed. Thereby reducing the demand for gasoline and causing the price of gasoline to be lowered.
During the Arab oil embargo in the 1970’s, a national speed limit of 55 mph was implemented. The demand for gasoline dropped and lives were saved. I have personally contacted both of the senators from my state and the national congressman from my district suggesting a speed limit of 55 mph. Not one of the 3 responded to my suggestion.
Comment by Kevin
Jun 29th, 2008 at 11:20 pm
I believe the oil/gas companies should be regulated as the Electric & Natural Gas companies are regulated. The only issue comes in that petroleum is a raw material in making products (plastics) that are sold for profits just as gasoline is a product, so at what point do we NOT regulate profits? The other problem is that the US Government can’t control markets in other countries, will companies reduce oil shipments to the US where they can’t make as high a profit that they may make selling it in Canada or other countries.
Comment by Emory
Jun 29th, 2008 at 11:21 pm
My LARGE Harley gets 40MPG without even trying. The high gas prices just made me invest in some rain gear- thats its. Screw it, lets Ride!
Comment by Randy
Jun 29th, 2008 at 11:22 pm
I think once someone assassinates one our inept congressman (women) then the rest will take notice. It is bound to happen, too many people are complaining, and sooner than later, they are going to piss-off a shooter.
I think that our congress and senate is so out of touch!
When I become president here is my first items are:
1. Senators and Congressmen have two-term limits.
A. Pay is $50,000 per year.
B. No Medical Benefits.
C. No Company Cars.
D. They also agree to be audited for the next 20 years by multiple tax companies to keep pay-offs from happening.
2. We become an Independent and a self-sustaining Nation.
A. We drill for our own oil, and if needed we can sell excess to pay off National Debt.
B. We drill for oil, where ever oil can be found.
C. We make our Oil Drilling areas “Cleaner, Better, than they were prior to drilling.
D. We use ONLY Nuclear Power for electricity and NOT coal. We use coal for other things, or sell to other countries to pay off National Debt. (Nuclear Power has ZERO Carbon FOOTPRINT)
E. Get rid of Diesel Fuel, and replace with Natural Gas. All Diesel Trucks will convert to CNG.
F. Develop Hybrids, and Electric Cars. (Electric Cars will require HUGE demand for electricity, and only Nuclear Reactors can offer that amount of energy)
Thanks!! More to come
Comment by chris
Jun 29th, 2008 at 11:22 pm
If there are that many fewer cars on the road, how would demand go up that much. Sure, demands up in developing nations, but the countries can’t subsidize fuel for ever, and demand isn’t up that much. If 10 million vehicles leave the road, don’t you think that would impact the futures market?
Comment by Rick
Jun 29th, 2008 at 11:22 pm
I wish that I knew what is going on. I work closely with the oil business in Houston and most at my level here don’t understand why the sudden spike in oil prices. I have heard about the speculators, the terrorists, big oil, supply interuptions, enviromentalists and more. I personally believe that it is a combination of all of the above. I believe the speculators with the help of the media are unnecessarily driving up prices, big oil is just sitting back and enjoying the big money they are receiving, they do not set the prices and they DO invest hundreds of millions to find and harvest the oil, but I don’t see them giving anything up to help. Enviromentalists are a big problem to domestic drilling and they don’t have any idea of what they are talking about other than their “feelings”. Drilling for oil is now so clean that I can’t understand their objections. Last of all are our politicians who wish to subjugate the US to the new world order. Just take a look at the Trans-Texas corridor plans to see what they have planned for us. Basically until people stop buying oil, the prices will not go down.
Comment by Daniel
Jun 29th, 2008 at 11:25 pm
When Israel attacks Iran within the next few months, we won’t have to wait till 2010 for $7.00 gas.
Comment by Steve
Jun 29th, 2008 at 11:28 pm
The reality of what we read about the oil crisis/situation is indeed of significance. How we, as end users of the commodity, understand, evaluate, and act is of real concern. What are the essentials in life? Rhetorically, we know they are food, housing, and transportation: each is not mutually exclusive. How then do we make viable decisions based on alternative ways to overcome and still maintain our open independence as we go about our styles of life, all framed in a prudent manner to continue to exist in terms of success? As demographically diverse and intra cultural Americans, this can be accomplished if we exercise pragmatic ways to “meet and defeat”: a fundamental of our democratic society. Is it at the point where we are so dependent on oil as a resource that none of us are willing to sacrifice and find innovative alternatives or are we just merely lazy and defer to complaining and making excuses and finding fault?
Many questions to be answered. Americans have always taken pride in a moral fiber that demonstrates our flexibility to provide solutions to problems. Our economic engine in this country has, as it appears, found itself so attached to the production of crude and the association of all hydro-carbons derived from every distillation process that the effects are felt in every sector of our economy - transportation, housing, food production, and on and on. Let’s find ways to creatively free ourselves of the bond to oil - no easy task but attainable.
Comment by Jeff
Jun 29th, 2008 at 11:29 pm
I think our economy will be totally destroyed before gasoline hits $7.00 per gallon. It won’t be so much because people will be forced to choose between a commute to work and food or medicine. It won’t be because people will no longer be able to afford a vacation or a trip to Grandma’s for Thanksgiving Day. It will be because the fuels used by our transportation industry, diesel and jet fuel, are significantly more expensive than the fuel we put in our cars. We have already seen the price of literally everything skyrocket because of the sharp increase in shipping costs. Our transportation industry in on the brink of failure. It cannot make any more cuts. The transportation industry is the backbone of the U.S. economy. Every other sector of our economy relies on transportation. Once transportation fails the entire economy fails. We are already dangerously close to that point. Fuel costs are up 33 percent from this time last year. Another thing that Americans don’t see is that the stock market takes a major blow every time oil futures are bid up. On 26 June the Dow drop 358.41 in one day of trading because oil futures were bid up $5.50. That was the last 21 months of gains lost in one day of trading because of ridiculous speculative bidding on oil future. On 27 June the Dow lost 106.91 when oil futures were bid up $1.22. At this rate the stock market will crash before the end of this summer. The U.S. will be a 3rd world nation before it sees $7.00 per gallon.
Comment by Steve
Jun 29th, 2008 at 11:30 pm
Wow since the dems have taken over congress, look what has happened. Open up our off shore areas to drilling and when that happens oil will go down. GM, Ford and Chryl better wake up and produce vehicles that do better than 15 mpg. People still drive too fast and we have too many old vehicles on the road. Time for change. Change congress first as the Dems have accomplished nothing since taking both houses.
Comment by The Truth
Jun 29th, 2008 at 11:33 pm
The truth is that the price of oil is being driven up to take your minds off what is important like the governments activities, corporate interest, zionist regimes, etc. They paint a picture of peaceful visits when they come and go, Bush to Saudia Arabia, the Pope to America, but what is really happening. Their called behind the curtain deals. Why do human being tolerate this, we are gods not rodents to be controlled by a group of crazy people who want ultimate power and knowledge. When will we see through the smoke and BS. Peace to all my sisters and brothers.
Comment by Nunya
Jun 29th, 2008 at 11:33 pm
This is total bunk. There is no real justification for this level of price. The demand has not slowed. The supply has not dwindled. Methinks there is more here than meets the eye.
Comment by john
Jun 29th, 2008 at 11:35 pm
i was recently at epcot in orlando and visited the gm facility at the test trac pavilon. there to my amazement show cased with the other gm vehicles was a hydrogen fuel cell suv. after talking to the gm rep. i was told that they were ready to start mass production of these vehicles. the rep. stated that the only hold up was our governments lack of commitment to help subsidize the hydrogen fueling stations accross the nation, that are already prevelent in southern california. when will our government wake up and realize that this is the only path foward? oil is no longer a solution. our government has failed us in not realizing that this day would come and we have no other choice but to pay thru the nose for their mistake.
Comment by John R.
Jun 29th, 2008 at 11:35 pm
The thought of no cars being on the road for the general public is problematic. Two of my children live in rural areas as teachers. Teachers drive miles from neighboring communities to the community school to teach. Until we develop a new way of teaching these children, the teachers who earn only 30,000 a year will not be able to afford to drive to work. Do we leave these children without a quality education?
Maybe the government will make us all live within 5 miles of our work in the large cities where we live in apartments (no more home owners because the