The Casone Exchange
  • June 27, 2008 07:57 AM EDT by Cheryl Casone

    $7 Gas

    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

jimmy

Betty, your mental go drink your cool aid

July 7, 2008 at 9:45 am

Jim Landrum

My wife and I have come up with a great plan to cope with $7 a gallon gas. We both drive VW Jetts Diesels that get 42 in town and 54 on the highway. I don't work (retired) and my wife drives 16 miles round trip to work. She can drive 36 days on a tank of gas. At $8 a gallon for diesel and 320 miles per month that is $61 per month. The way to cope with rising fuel prices is to conserve and live close to work.

July 7, 2008 at 8:24 am

ross

Ha! What a laugh. Congress and the executive branch have spent all the $$$ on useless wars while failing to set an energy (and food, health, social security, etc.) plan. Lame democracy at work, the system is broken and needs to be replaced. We need a new form of gov't where the elitist leaders are held accountable and a vote of no confidence immediately removes them from power. How much longer can we act like lemmings and see our futures decay into poverty while your taxes support the greedy, rich and lazy? Let them eat cake, she said.

July 6, 2008 at 8:44 am

doug

all I continue to hear is "dependence from foreign oil", and alternative sources of energy. This is great, except that while we park those 10 million cars, or take mass transit, or work from home, all of the goods and items we depend on (grocery, clothing, food, etc) will still have to be delivered by 18-wheelers using diesel fuel, which will still drive the costs of these items up. I doubt that there are any technologies out there for an electric Kenworth! In addition, all of the main focus has been on airlines, gasoline and the cost of driving and flying. Yet we could all stop driving today and we would still need oil. Tires? 4 gallons of oil per. Hoses for all kinds of items in industry? rubber (and therefore oil) Other items include asphalt paving, plastics and the list goes on and on. So even though the main focus has been on gasoline, there are some areas that oil is a necessity, and will continue to be for quite some time. Just my 2 cents

July 5, 2008 at 8:30 pm

Ron

Should Gas reach $7.00 per gallon. We should all goto the local book store and buy a copy of The Grapes Of Wrath. It will go from a novel to a history lession that same day.

July 5, 2008 at 12:45 pm

Greedom

I don't mind $7 gas I do mind a 1 to 1.60 ration on the US Dollar to the Euro and I DO mind a 2.0 to 1 ration on the Sterling to the Dollar. The rest ? adjust accordingly before you call it $7 I can't make people think, I can't I can't - I can't

July 4, 2008 at 11:28 am

John

No More speculation no more monopoly's This is no different then the rail Barrons of the 19th century anti trust laws are out the window. When Milk is $10.00 / Gallon and people in the inner cities cannot feed them selves we will be ripe for the taking just as Germany was the last day of June 1934. This is a national security isssue plain and simple but neither party will touch it.

July 3, 2008 at 8:15 pm

Bart

I tend to concur with my father-in-law who was in the natural gas industry for 30+ years that most of the run up in the price of oil is totally irrational. We lose 50,000 barrels a day from Nigeria and the price of oil runs up $4-5. If the same thing happened pre 9/11, it'd go up maybe 50 cents. Demand hasn't gone up that much in that period of time. I understand the weakening of the financial markets and devaluation of the dollar, but come on. I'm kind of torn though because the energy sector is probably what has kept my 401(k) afloat. I'm with Kevin above though, long term we need alternative energy sources, but right now, we need to drill here. You're not going to flip some magic switch and get everyone in an electric or hydrogen powered car overnight. Or even in 5-10 years. I think this run-up has finally gotten some people's attention when it comes to energy usage, which is a good thing. But we can't just throw our hands up and say, "we need to break the oil addition, right now!" without ruining this country financially. I know there are groups of people that would just love for that to happen, and personally I think this country would be better off if those folks would just find their own island and set up their little perfect "green" utopia at their own expense.

July 3, 2008 at 5:10 pm

Brad

Being in the supply chain business, the cost of energy is having ramifications across all parts of our strategic planning. Transportation costs are becoming a much larger portion of product costs and its forcing companies to rethink their low-cost country outsourcing strategies. I predict a shift in the entire manufacturing base where Asia no longer is as attractive as it once was. This is, of course, if energy prices continue to escalate. Assuming this does and the US embarks on a true energy, self-sufficiency plan, I expect to see manufacturing make a return to the US thereby creating jobs, greater infrastructure, etc. And, this would be done with less expensive energy costs through the use of nuclear, wind and solar power. Asia will not be prepared for this shift thereby making their products much more expensive. A global economy can shift in different directions based on who is best prepared for the change.

July 3, 2008 at 1:17 pm

Rebelman

The American people need the guts of my forefathers (both Revolutinary War and War for Southern Independence) to go to Washington and throw out the bums, get rid of the central government's interference in business and let the companies that wanted to give us 70 and 80 mpg vehicles and electric cars years ago while the demoRATS and Repubs took money under the table to keep these gas savers, etc away from the American people. Yes, the American people are the blame for the current situation!

July 3, 2008 at 12:49 pm

GoGetter

The media also has effect on things too, I believe, on what and how they report the issues. What was that saying in one of the Bond movies...."there's no news like BAD news".

July 2, 2008 at 5:17 pm

Pete

Unfortunately most of you don't know what you're talking about. This is yet another wake up call for the auto makers. Where are the 50 mile per gallon pickup trucks and SUVs??? They have had 20+ years to work on this problem. My brand new 1/2 ton Chevy Silverado averages 13 mile to the gallon. I don't need 350 horsepower. What has "Detroit" been doing. Oh, thats right Chrysler is closing their van plant in St. Louis and will probably close their truck plant too. WAKE UP auto makers. This time it's gonna cost you!

July 2, 2008 at 5:08 pm

Bushy

All Republicans are the reason for high oil prices.... You all think that to be American is to chase the almighty dollar and step on anyone to get it. Corporations in this country now have more rights than it's own Citizens. If somebody is willing to pay you, you would sell your own mother to get a buck. All thru out the 1900s the men and women (mostly the middle class) built this country into the worlds biggest superpower. In a 20 year span you yuppies have managed to tear all that down in the never ending drive for wealth. People use to work and earn money to enhance their lives for their families. People lived their lives, not their jobs. Now people live for the job, the family thing is now a burdon. Just a bunch of thieves... The middle class woke up today to find America up on blocks with the wheels missing. You all should be deported!!!!!!!

July 2, 2008 at 4:50 pm

Lance Roberts

The environmentalists have locked up our resources. Oil prices work off of supply and demand, like all other materials. Increase the supply, lower the prices.

July 2, 2008 at 4:40 pm

Kevin

Why does it have to be we drill OR we find alternative energy sources? The prudent thing would seem to be to do both. The reality is that we are currently dependent on oil to run this country and this economy. We have to allow more drilling in Alaska and off shore to increase domestic production and to help lower prices. Second, we need to continue a full-court press to develop new alternatives. Congress should do whatever it can to encourage these developments (without subsidizing any of them), which it has not done. We will not drill ourselves out of this situation (entirely), but we will also not find some magical replacement for oil any time soon either. Both paths have to be pursued. Don't fall for politicians and the media that like to present polarized views of issues. We need to go both directions as fast as possible.

July 1, 2008 at 12:12 pm

Jobuck

First Congress needs to grow a spine and do what's right. Americans have learned how to vote money out of the treasury to bankrupt this country so it can "Supersize" itself. Well it looks like the high life won't be so high for the near future. We have a great country and we can face the challenge as long as we get off our "it's all about me attitude". Second the EcoNazis (I'm all for environmentalists that seek sound use of our natural resources, the whole country can't be a National Park)and ACLU need to stop making shrines to plants and animals and recognize the human race takes precedcence but is second to God only. Finally our super abundant lifestyle, and don't say it isn't when compared to the rest of the world, has allowed us turn our back on God. For all those anti-Christian know it alls out there who will bash this in ignorance, thanks for your survival of the fittest attitude that promotes the "it's all about me attitude in congress and in our communities". And thanks to all you Al Gore (front man for the carbon market)fans for transferring even more American wealth outside our nation. Why in the world do we have to pay farmers in other countries to trap there methane emissions and then let them sell it for free income? Hollywood elitists-fight terrorism by giving up your dope habits.

July 1, 2008 at 1:08 am

Michael

This is in response to Caleb's comment. Thanks for being an "expert." Isn't it "experts" who got us into this problem in the first place?

June 30, 2008 at 11:06 pm

jafarko

trivia question: Who was the mental midget that when asked why he didn't release some of the strategic petroleum reserve to control oil prices he responded "....I will not play politics with oil"?

June 30, 2008 at 9:08 pm

jafarko

The only way to fix this is Defibrillaton!! Shock therapy. The Fed should raise interest rates 2% at the next meeting. The shockwave from the dollar value increase will jolt oil down to $70 a barrel. It will also help curtail the rising tide of inflation. I say screw the mortgage mess and save the rest of us. The needs of the many outweigh the needs of the few...... Quick trivia question: Name the mental midget that when asked why he didn't release some of the strategic petroleum reserve to provide price relief his answer was "...I am not going to play politics with oil"?

June 30, 2008 at 9:05 pm

Esteban

Once the Chinese Olympics are over, the price of oil & gas will come down a bit. However, this is the greatest country in history and we have shackled ourselves from using the natural resources that God has provided. There is more oil beneath US land than in the entire Middle East! Oil companies have spent countless millions of dollars to research how to remove it safely, cleanly and with minimal environmental impact. It's time we start doing it and tell OPEC to go hug a root! Let them sell it to Europe. Until we get our own drilling & refining up and running, we need to send the check to Iraq, Kuwait, Israel, Mexico & Canada & tell them it's time to pay up! DRILL HERE, DRILL NOW, PAY LESS!!! Note to "K" -- our capitalistic economy is why there is an immigration debate in this country. You liberals don't get it -- taxing the profits of oil companies won't add a single gallon of gas to our supply and they will simply pass it on to the consumer. And the percentage of "windfall" profits that oil companies realize is small compared to many other industries -- i.e., Microsoft's profit was 23% last year compared to Exxon's 13%. Taxing corporations is bad for business, will hurt the economy and lead to bigger problems like higher unemployment (which, amazingly, is still very low). Get a clue dimorat!

June 30, 2008 at 6:56 pm

John

I am amazed that no one has identified the true impact of this oil increase. While it is more costly now to drive a car, I am waiting for the 33% increase in the cost of oil to be reflected in the rest of the economy that depends on oil for something other than gasoline - then you will hear people really scream: - Electricity (oil or natural gas-fired) - Heating (Oil and natural gas) - Air Conditioning - Water & Sewage (generators need oil) - Food (fertilizers, gas for tractors, etc.) - Toys - anything made of plastic - Storage containers made of plastic - Plastic wrap and wax paper - Candles and anything made of parafin I fully expect all food products to go up 25-33% in the next few months. Anything and everything made out of plastic will go up 25-33% in plastic. If Congress does not get a backbone soon, they will be guilty of letting this country slide into a depression so they can continue to please their Environmentalist supporters. Nothing the Democrat or Environmentalists are offering will bring any relief to this economy. Nothing they offer has a chance of being available nationwide in less than 10-20 years. Drill NOW - quit funding the radical fundamentalists that wanted to destroy this country

June 30, 2008 at 6:01 pm

eric

this all comes down to who's really to blame. the general public is to blame living off of credit ( that they could never pay back ). this is why the housing market has tanked. we never had this problem before because investors had their portfolios in real estate now that that's a flop they switch over to oil. so before everyone starts complaining and passing blame look at yourselves. how much debt do you have. that's why things are the way they are.

June 30, 2008 at 5:17 pm

eric

if everyone in our country didn't live beyond their means this wouldn't be an issue. To date the only thing that's been affected by $4.25 a gallon gasoline is that instead of 200 a week going into savings only 150 is. and my wife and I are not rich. we each make 30,000 per year which is about average in america right now. if everyone would stop living off of credit our housing market wouldn't be in this position which in turn would have kept investors in real estate and not oil. That is the problem. everyone wants to blame the democrats or the republicans. quit your whining and face the facts the average americans are the ones doing this to themselves. Get a clue and quit using credit as your personal checking account. hello eventually that money has to get paid back. When is doesn't get paid back we end up with todays oil and housing problems.

June 30, 2008 at 5:11 pm

Amy

I have a feeling that Gas prices will continue to go up. It's going to get worse before it gets better (Will it ever get better?) It is ridicules what the gas prices are now. Yes, I believe greed is the cause of it. The government keeps on getting more tax money as the prices increase and the oil companies get their huge share of profits also. I’m a single woman making less the $25,000.00 and it is very difficult to pay my rent, electric and other bills. I live in a small town in Indiana that doesn’t have public transportation. I would rather pay for a bus pass than drive my car to work. I could car pool but my work hours are 7am to 3:45 pm so it is hard to find someone that works close to those hours. I wish I could ride my bike to work but that would be like a total of 20 to 24 miles (about 10 to 12 miles one way) per day and the road I travel is kind of a busy highway. I hope and pray that there is a solution out there and someone thinks of a way to lower these gas prices!!!!!!!!!

June 30, 2008 at 12:37 pm

Eric Wilhelmson

I just returned from a trip to CA. Gasoline out there is well above $4 and in some areas like Yosemite it is over $5. It has not discouraged driving, though. The roads are packed and the HOV lanes are empty. High gas prices? Not a problem.

June 30, 2008 at 9:18 am

colleen

Yes this gas thing is all about greed, Tell me has any one seen a gas station that is out of gas.. Heck no as long as you are willing to pay the price you can have all you want. As far as the gentleman who doesnt have a car, just possibly the auto makers may buy parts from your company or services, so when the auto makers go it hurts everyone from chip makers. to tires to foam whatever it takes to make that car...

June 30, 2008 at 2:46 am

Caleb

Reasons for oil price increase in order of importance from a Euro/Usd currency trader: 1. Dollar depreciation - Bernanke hasn't got a CLUE! Cad dollar is near parity, and we buy 75% of our oil from canada 2. Picking a fight against the MIDDLE EAST (duh) 3. Chinese demand - they are buying more and more oil with increasingly valuable renminmbi 4. Russia oil production slowdown 5. Production shortages due to government regulations Over the next 3-5 years there will be a seismic shift in world wealth. Seemingly overnight, America will cease to be one of the wealthiest nations in the world and will undergo a serious cut in its standard of living, impoverishing many in our country. I suggest you learn to trade currencies, purchase gold and move your wealth offshore. It's not a drill this time. The party IS over.

June 30, 2008 at 2:29 am

Keith G

Ignorance is in such abundance, between the blame bushies and the big oil haters. It is those SAME Ignorant americans, who have gone along with enviro idiots and scare mongering politicos, preventing drilling IN THE US, Preventing any new refineries in 30 YEARS, boycotted nuclear energy. The fault is those lemmings who have allowed the US to be slaves to the Middle East. Until there is a VIABLE, mass produced, non petro based vehicle, this planet's engine will be powered by OI

June 30, 2008 at 1:42 am

Michael

If there is an attack on Iran, we might see $10 a gallon within days of the attack!

June 30, 2008 at 1:12 am

Jay

While I am no economist or oil company insider, I do consider myself rather versed in common sense, and I doubt we will see $7 a gallon gas anytime soon. The oil companies want to make big profits, not cripple our economy. $7 a gallon someday, for sure (unless we can stop being dependent on foreign sources of oil) but as a previous poster has stated, I think it will stay around $4-$5 a gallon for the immediate future. A 55MPH Speed limit would reduce consumption but not by enough to make it worth it.... conservation is good but it won't solve the problem. A mix of conservation, more drilling, common sense laws & regulations and new technology to scare the foreign oil sources into dropping the prices will be the magic formula to keep us out of outrageous gas prices.

June 30, 2008 at 1:06 am

Scott

I stubbed my toe while walking to the bathroom in the dark late last night - I KNOW it was BUSH that caused it! (ughh, simpleton) 55! Why the heck should we drive 55? Have you done the research? 50-60MPH is the most unsafe speed range. If you want to regulate people to 55 to save gas, then why don't you also demand that all vehicles must get 70 miles per gallon to be licensed? (new and old) If I want to burn most my budget in fuel than leave me alone to do it. The laws of supply and demand work. We need the politicians to get out of the way and allow our supply to increase. Extracting more oil and building more refineries would drop the price. Also, reducing demand reduces the price. So, we need to stop subsidizing corn farmers and burning inefficient ethanol (doing so might reduce the food riots our policies are causing in other countries too, yup - our politicians at work again), and find truly cost effective alternative fuels. Build more nuclear power plants (or coal) and get more purely electric cars on the road (and even electric motorcycles). Solutions are available, but we need leaders rather than politicians.

June 30, 2008 at 12:58 am

miles rice

I parked my Cad. 2 yrs. ago and bought a 150cc scooter-- put a basket on it for shopping and now spend less than $2.00 p/wk. on gas. Suits me to a tee! miles

June 30, 2008 at 12:57 am

Frost

The time has arrived for history to repeat itself. We were promised cheap gas until the year 2000 way back in the 1940's for helping the arabs set up their oil fields and refineries. Now these [not billionaires, but trillionares are making a fool out of this country. Bush and Chaney are getting filthy rich, but as soon as the economy crashes which it soon will, the recovery will not work out, and this time will be devastation. It is the time of trouble which the Bible teaches about. GREED, GREED, GREED. The rich will wail and throw their gold into the streets. They end up with nothing for there is nothing to buy and no one to purchase anything. The banks close and all the rich lose all of their wealth. If the leaders say that 1929 will not repeat itself, just wait and watch. It will be far, far more devastating. There is plenty of oil, just a chance for GREED, GREED, GREED. Car, food companies, and tourism are going down the tubes. Gasoline needs to be taken off the stock market exchange, and it should be federally regulated and controled.

June 30, 2008 at 12:57 am

James

> 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. A polite question... I understand distances in US. But why use SUVs and other gas-gruzzlers? Why not 2-wheelers and fuel efficient cars like pretty much the rest of the world. And perhaps it is finally time to start having bus services in more towns, at least where feasible... again, only like the rest of the world. I live in Portland, Oregon with a great public transportation system. And in the 6 years I lived here, did not need a car.

June 30, 2008 at 12:53 am

Willard

The price of gas may easily hit $6 by next summer and I would not be supprised if oil hits $200 yet this year. I would however expect that the price of oil will peak sometime in the next 24 months. Although gas is at $4 here, traffic has not decreased. I have bussed or carpooled for most ot the last 25 years. I still see most cars with 1 person. Most goods can be transferred cheaper by rail and yet they are sent by truck. Right now there is no reason for gas prices to not rise as we have not changed our ways. In 24 months expect to see hydrogen cars, electric cars and yes even cars that run on water. The Japanese already have water powered cars in test. They can run on fresh or salt water. The oil producing countries know this and won't let oil prices get much higher. This bump in prices took them by suprise also. They want the price to rise but not enough so that anyone will take action. Keep in mind that almost every country is pumping at their current capacity. Some have even said that it would not make sense for them to add more pumps into the same oil fields as this would only drain the fields faster. Others have untapped fields that they say they will not tap until oil gets over $150 or $200. The related inflation in food prices will definitely be a bigger issue. Even though corn and soybean prices are at record highs, farmers are going bankrupt. The impact of flooding in the midwest will first be felt in 9-12 months.

June 30, 2008 at 12:52 am

Matthew

America has not and will not ever be like the UK. Where you can hop a bus, train, or taxi and get pretty much everywhere you want to go. We are a fat, lazy country and will not pay our bills, to fill the tank if it meant we had to walk to the grocery store. The majority of us live in small bedroom communities that are 10 miles or more away from the things we deem important. Unless Wal-mart starts building stores like we build bars, we are going to need our big, gas guzzling cars and SUV's to get groceries, our nails done, and the new $100 sneekers for Jr. Congress needs to bite the bullet and begin drilling anywhere we can find oil. The birds and animals will understand. Believe me, I asked. That will provide a small fix pretty soon while we begin to work on all the other options. Oh, if they decide not to drill, are they going to give every American that makes less than $30,000 a free "green" car? Because we are a car driven, no pun intended, society. We use the car to check the mail. Always have, and always will. So how is the average college kid, or the person working at McDonalds going to afford a new "green" car? We make more than $30,000 a year and would find getting new cars almost impossible. We are not a stupid country and are not stupid voters, so we will remember the Congress person that does nothing to fix this issue. I have one message for Congress, drill or lose your job!

June 30, 2008 at 12:51 am

Analyze This

I don't care what anybody says. Even if the demand for gasoline goes down and the supply goes up, the price will rise to the $5.00 / gal range by the end of 2008. No matter what fuel is used, gasoline, electric, solar, alcohol... the cost to operate a personal vehicle will be at the same cost as operating a good old fashioned gasoline powered vehicle! There will never be a cheap way out! Those who think they have the edge with vehicles that run on cooking oil... forget about it! Your free used cooking oil days will be over! The price for fresh cooking oil will rise and the restaurants that give away used cooking oil or sell it cheap will start selling it for a nickel less than diesel! If you think you are going to ride you bike to work or the train station... get ready for heavy bicycle licensing fees and bike rack charges. I predict that by 2012, you will be taxed for UNDER USAGE of gasoline powered vehicles. The government NEEDS the TAX revenue generated by gasoline sales. You take that away from them and they will find other means to get it!

June 30, 2008 at 12:45 am

Ben

There is your answer. Blame Bush. Of course you do realize that Bush cannot make policy changes without the Legislature, or did you fail high school government. As for 9/11, what are you talking about? He was on AF1 and demanded to go back to D.C. so he could get on the air and let people know what was going on. Where would you want the President,let me guess...in the Oval Office getting *****!

June 30, 2008 at 12:44 am

Dave

As to American Man's comments.....Dems have been in control of Congress long enough to have done something about speculators driving the markets. I'm sick and tired of people blaming Bush for all the world's problems. Has he made mistakes...yes. Will he make more in the final leg of his term...probably. People like you need to get off your high horse and realize it is EVERYONE (THE GOP AND THE DEMS) in Washington. When you do, you'll realize that it needs an overhaul.

June 30, 2008 at 12:40 am

brian

$4.00 gasoline hasnt changed the driving habits of america?????? what planet do you live on. i have the honor of living in the rustbelt/midwest. more precisly, Toledo, Ohio. please do me the favor of visiting my fair city and driving its Pothole laden roadways and notice the lack of cars on them on a given weekend. most notably the freeway system. in my opinion, traffic is down by probably 30%. but if you start driving down the side streets in neighborhoods, where these hardworking (those fortunate enough to actually be employeed) Toledoans live, you will have a hard time finding a parking spot, because of the number of people who dont drive to the mall, the park, the next city, or the vacation that they had to cancel on account of $4.00 gasoline. i am sorry, but i have to take exception to your comment and say you are wrong, it has changed our driving habits, and i can only imagine what 5, 6, or $7.00 gasoline will do to my great city, state, and country. the only word that comes to mind is devistate.

June 30, 2008 at 12:37 am

Scott

The next spike will definitely hurt. Americans are changing their driving habits as evidenced by a 4% decrease from a year ago. THe weakening of the dollar, strengthening of the euro, high fuel prices, mortgage crisis, unemployeement going up, our debt to China........we are in trouble. It is my understanding that Congress legislates and forwards bills to the Office of the President for the President to sign into law or veto. Where are the bills for the President to sign? Don't blame the President unless he vetos.

June 30, 2008 at 12:33 am

Rod

7 bucks a gallon, and so what? In Europe it's been more than 10 dollars a gallon for many years already, and they seem to have come to terms with it. Why can't we?

June 30, 2008 at 12:30 am

Brian

AmericanMan you are an idiot. on 9/11 Bush was forced aboard air force one which shuttled him around the US until they were sure he wasn't being targeted. After Katrina Bush is not allowed to send aid to any state after a disaster unless a request is made by the governor of the state for help from the federal government. Louisiana's governor did not request aid until several days after Katrina hit. Bush is trying to get offshore oil drilling and arctic oil reserves opened up while democrats shoot down these proposals that would relieve dependency on foreign oil and drop gas prices at the pump. and if you knew anything about politics you would know all this stuff has to be sent through congress to get it passed. Now here is why gas prices will drop or why oil producing countries are tying a noose around their own throats. With these high gas price predictions all american car producers have realized that they will go bankrupt. There will soon be a swing from cars that take gas to cars that run on hydrogen (especially with the whole "green" movement going on). Of course it will start first in major cities but it will eventually trickle down through all cities. Once the oil companies realize how much money they are losing they will be forced to drop their gas prices back to around $2. All new cars will be using hydrogen and people driving older cars will still use gas but the ratio between hydrogen and gas users will be almost split in half.

June 30, 2008 at 12:27 am

Jim

I think OPEC is screwing us becasue they know the end of their oil reign is near. There are companies in Georgia and Silcon Valley that have developed processes to convert any bio-mass into high grade oil. And they'll soon be able to produce cheap bio-fuel. The Georgia company says it should eventually be able to produce gas for as little as .25 a gallon. Tha Bakken Formation is a shale oil formation containing an estimated 3-4 billion barrels of oil. It's located in North Dakota and Montana. Production has begun. A refinery will soon be built in Montana that will produce 400,000 barrels of gas every day from Canadian oil shale. This only scratches the surface. A new oil deposite was recently found in the Gulf containing an estimeated 9 billion barrels and it's just off the coast of Louisiana. The list goes on and one. Between the bio-fuel and oil reserves right here in the USA. We could easily provide all our energy needs right here in the good ol USA. Th only thing that could stand in our way of total energy independence is our Government. Time will tell. I hope we all will soon see a day where the Arabs have nothing to export but sand.

June 30, 2008 at 12:23 am

Nick Booe

I don't blame just republicans..I blame every single in office...They all have the same amount of power as the next guy or woman, to put a stop to this madness..However, they allow themselves to be controlled by the economist, who are placing fear in every american...I for one am sick of getting loans for a house, car, college, etc...If this continues, we will be getting loans just to fill up the car...

June 30, 2008 at 12:16 am

Don

Europe has been paying $7 a liter, some $20 a gallon for a long time now. But by all means blame Bush, no one else in the White House or our esteemed Congressional brain trust for the past half-century has foreseen any need to increase refining capacities or pushed to expand domestic or offshore drilling while demand has increased to 140 million barrels a day. The rationale to look to this government, especially blaming one man is asinine. What a nation of sheep we've become.

June 30, 2008 at 12:14 am

Nate

You people are nuts, american man blames the president, john thinks americans can save the planet, only Bill and bullie seem to know whats going on. Its your gongress, they want high fuel cost, then we have to go to them for answers, then they get tho power. Wait till we have to pay for gas, universal health care, free college for everyone, etc. Its a socialist dream of the same 60's hippies that hated the united states back then, and are now in power in congress. There is no oil shortage, period. Ive been in the oil patch for 20 years, just think, 13 years ago oil was at 10 bucks a barrel, what happened? Windfall profits taken by the government, they tax 38 cents a gallon, they produce no oil, none. And yet they want windfall profits on the people that do and who only make about 10 cents a gallon. exxon mobile made a 38 billion dollar profit off its employees that worked for a living producing your gas. The US government made more that 500 billion off of those same people, then taxed thier income on top of that. Pull your heads out people, it aint Bush, it aint big oil, it aint big pharmacy, its your congress, its the left wing libs that are out to make all of us equally poor and miserable.

June 30, 2008 at 12:12 am

Anthony

Hey American Man, Bush (or the Presidency) doesn't enact laws. That's Congresses responsibilty. Why don't you have something useful to say instead of your blind bashing of Bush.

June 30, 2008 at 12:12 am

Alaskan Man

Gas will hit 5 bucks I am sure of it, but I believe in America, and I believe in Americans, so I have to believe that Americans will finally wake up and vote for the right people! Clinton veto'd ANWR years ago when it was passed by congress and senate, if we vote right that wont happen again! As soon as we are creating our own sources on energy in our own country, things will get better. Not any sooner not any later. Get a clue America, ask your leaders what they support, and vote for appropriately.

June 30, 2008 at 12:07 am

Mark

American Man claims Bush was hiding during Katrina (as well as other ridiculous claims). I'm from Iowa and here is my response: Why aren't Hollywood celebrities holding telethons asking for help in restoring Iowa and helping the folks affected by the floods? Why aren't the media asking tough questions about why thefederal government hasn't solved the problem? Or asking where are the FEMA trucks (and trailers)? Why isn't the Federal Government relocating Iowa people to free hotels in Chicago? Why isn't it giving them $200 vouchers that they can spend on alcohol and vice? When will Spike Lee say that the Federal Government blew up the levees that failed in Des Moines? Where are Sean Penn and the Dixie Chicks? Where are all the looters stealing high-end tennis shoes and big screen television sets? When will we hear Iowa Governor Chet Culver say that he wants to rebuild a “vanilla” Iowa, because that’s the way God wants it? Where is the hysterical 24/7 media coverage complete with reports of cannibalism? Where are the people declaring that George Bush hates white, rural people? How come in 2 weeks, you will never hear about the Iowa flooding ever again? We’ll overcome on our own and we sure as heck won’t blame Bush or anyone else!

June 30, 2008 at 12:07 am

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  • Cheryl Casone joined FOX Business Network (FBN) in September 2007 as an anchor. Prior to FBN, Casone served as a correspondent for FOX News Channel’s (FNC) business unit and was a regular guest on FNC’s Your World with Neil Cavuto. Casone brings years of experience covering finance, business, and consumer news to FBN.

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