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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Americans Anticipating $4 Gas
Consumption; Demand; PricesGuest writes:

The overwhelming majority of Americans anticipate prices at the pump will hit $4 a gallon by summer, while a sizable minority believe the number could go even higher this year, according to a newly-released study by the Civil Society Institute.

“Americans fear the worst,” said Pam Solo, president of the non-profit, non-partisan organization, which has been pushing federal lawmakers to raise fuel economy standards to 40 mpg (versus the recently-enacted increase to 35 miles per gallon).


Rising fuel prices were the “most often-cited economic worry,” outscoring threats of a recession, rising joblessness, inflation worries and home foreclosures, noted Graham Hueber, a senior researcher with the independent Research Opinion Corp., which handled the poll of 1001 Americans, conducted earlier this month.

Approximately eight out of 10 of those surveyed feel the government isn’t doing nearly enough to deal with the energy crisis, while a solid majority feel that oil companies are “gouging” consumers at the pump, said Hueber.

The Car Connection

Posted on Thursday, January 31 @ 10:55:59 PST by Leanan
 
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