Get ready for $5 gas (free-market, disputing, companies, salary)

[bchris02]

Wholesale gasoline prices are up to $4.25 today on hurricane fears. That means by next week we will be looking at a national average of at least $4.79 at the pump.

[8 SNAKE]

Originally Posted by bchris02

Wholesale gasoline prices are up to $4.25 today on hurricane fears. That means by next week we will be looking at a national average of at least $4.79 at the pump.

I wouldn't bet any money on that.

[j760]

Why is there always a thread like this? Get ready for $5 gas, Get ready for $7 gas, Get ready for $10 gas. lol

Thinking about what could happen is a big waste of time in my opinion, if the prices are going to go up then they are going to go up. Life goes on regardless in my opinion.

[StoneOne]

What's the matter with you?

Latest price (15 minute delay) can be found here: NYMEX.com

[Buckeye in SC]

Originally Posted by StoneOne

What's the matter with you?

Latest price (15 minute delay) can be found here: NYMEX.com

Unfortunately, there are a lot of people just like that wannabe Chicken little. Whenever one little blip happens, they think the sky is falling and gas will double, oh no! Some people live for drama and or fear. He just makes a random statement that misleads people, thanks for providing real data to of course prove his ridiculous statement wrong.

Oil currently trading under $101/barrel, Gas trading at under $2.73/gallon on the NYMEX

[hindsight2020]

If you think gas won't be pushing $5/gal during the summer of '09 you need to stop sniffing that gas pump. Will you get a 10% COLA next year? Hell no. Neither did you or me last year either. Jesus.

You know when I was in college in the early 00' gas was $1.20 on the summers. People see the drawdown from 4.11 gas to 3.50 this fall and all of the sudden act as though gas is so cheap. Gas is outrageous expensive at $3.50. My gas expenditures have risen by 130% in less than 5 years and my income has not kept up with inflation. Auto commercials boast about 29MPG highway ratings like it's the second coming when that doesn't even cover the hike in gas price remotely linearly. 25MPG cars were built on 1.50/gal gas. 4.00 gal gas means 60MPG cars, nope don't see em.

$4.79 gas won't happen this fall, the OP is exagerating, but summer 09, you bet your checkbook $5 gas will be there. Will you be salary adjusted for it? heck no. But keep that hand up the sun fits rather well inside it I bet.

[Buckeye in SC]

Originally Posted by hindsight2020

If you think gas won't be pushing $5/gal during the summer of '09 you need to stop sniffing that gas pump. Will you get a 10% COLA next year? Hell no. Neither did you or me last year either. Jesus.

You know when I was in college in the early 00' gas was $1.20 on the summers. People see the drawdown from 4.11 gas to 3.50 this fall and all of the sudden act as though gas is so cheap. Gas is outrageous expensive at $3.50. My gas expenditures have risen by 130% in less than 5 years and my income has not kept up with inflation. Auto commercials boast about 29MPG highway ratings like it's the second coming when that doesn't even cover the hike in gas price remotely linearly. 25MPG cars were built on 1.50/gal gas. 4.00 gal gas means 60MPG cars, nope don't see em.

$4.79 gas won't happen this fall, the OP is exagerating, but summer 09, you bet your checkbook $5 gas will be there. Will you be salary adjusted for it? heck no. But keep that hand up the sun fits rather well inside it I bet.

I'm not disputing gas hasn't risen outrageously in the past decade. I was simply commenting on the short-term based on the OP's sentiment that b/c of the hurricanes gas magically will shoot up $1/gallon overnight - which is just not true.

I don't think we will hit $5/gallon in summer of 09' - for the first time people are fed up with the manipulation and are seriously talking about alternative fuels being developed, conservation, public transportation, etc. Oil companies/speculators are not in panic mode yet, but I bet they are concerned that they crossed the tipping point this past summer. You are a prime example of someone who is fed up w/it like millions of other Americans, and that is what will get 60 MPG automobiles, and alternative fuels - is people demanding change and acting on it. I started driving in 97' when gas was under $1/gallon and just about the time SUVs took off as the vehicle of choice, 11 years later gas has quadrupled. Is it all SUV's fault, no, but it had an impact for sure. Now automakers are halting production of SUVs by the thousands and can't produce fuel-efficient cars fast enough - b/c the consumer has spoken. The beauty of a free-market economy.

[StoneOne]

Originally Posted by Buckeye in SC

I'm not disputing gas hasn't risen outrageously in the past decade. I was simply commenting on the short-term based on the OP's sentiment that b/c of the hurricanes gas magically will shoot up $1/gallon overnight - which is just not true.

I don't think we will hit $5/gallon in summer of 09' - for the first time people are fed up with the manipulation and are seriously talking about alternative fuels being developed, conservation, public transportation, etc. Oil companies/speculators are not in panic mode yet, but I bet they are concerned that they crossed the tipping point this past summer. You are a prime example of someone who is fed up w/it like millions of other Americans, and that is what will get 60 MPG automobiles, and alternative fuels - is people demanding change and acting on it. I started driving in 97' when gas was under $1/gallon and just about the time SUVs took off as the vehicle of choice, 11 years later gas has quadrupled. Is it all SUV's fault, no, but it had an impact for sure. Now automakers are halting production of SUVs by the thousands and can't produce fuel-efficient cars fast enough - b/c the consumer has spoken. The beauty of a free-market economy.

Exactly.

What people like the OP don't seem to understand at all is that $5 is impossible for all but a very brief period. $3.50 is not sustainable for the long-term either, unless, of course, we have 60-100mpg cars.

Energy has to be cheap over the long-run. If gas stays high, alternatives will take over. I don't know what's so hard to understand about that. People will invest more in it, the technology will develop, and economies of scale will bring the price down to where it beats the expensive gasoline. Demand for gasoline will decrease and its price will go down too.

What we're experiencing now is a market adjustment. This is not the future of things long-term.

[SunnyKayak]

High Gas prices are good for the economy.

Companies look at making goods in America as it will not be economical for them to ship goods

[chuck22b]

Originally Posted by SunnyKayak

High Gas prices are good for the economy.

Companies look at making goods in America as it will not be economical for them to ship goods

Yea, as a result of other Countries growing, Oil costs rise. But, mid/long term wise we need to find more than just Oil costs as the sole reason to keep companies here.

Eventually Oil costs will go down as alternative means of transportation/efficiency/production comes online. We don't want companies to go out of the country after that happens again do we?