CBS News predicts $6+ US gasoline within a few months

Hogan · Light Sweet Crude Joined: Oct 25, 2004 Posts: 1298

I saw this posted over on Matt's LATOC site and wanted to repost it here:

CBS News predicts $6+ US gasoline within a few months

video link

seldom_seen · Light Sweet Crude Joined: Apr 12, 2005 Posts: 1945

Sustained gasoline prices above $6/gallon will grind the US economy down to a sputtering, churning mess of broken gears, busted hoses, cracked gauges, and smoking metallic refuse.

It's looking like 2008 could become the dividing line between the world as we know it, and the world as we knowed it.

Cashmere · Light Sweet Crude Joined: Mar 27, 2008 Posts: 1449

Very bad news.

The sheep are going to smell blood soon.
_________________
Massive Human Dieoff must occur as a result of Peak Oil. Many more than half will die. It will occur everywhere, including where you live. If you fail to recognize this, then your odds of living move toward the "going to die" group.

Hogan · Light Sweet Crude Joined: Oct 25, 2004 Posts: 1298

Think about this- at $7 per gallon, it would cost $210 to fill up a 30 gallon SUV or truck fuel tank. And a once a week fill up would cost a total of $840 per month! Shocked

Peleg · Heavy Crude Joined: May 20, 2008 Posts: 391

Oops. I was going to sell my Jetta this month. I think I will wait until August when the used car bubble gives me a 30% premium. These lawmakers are talking about capping prices, if they do they will find out this summer whether it is a supply issue or a speculative bubble. Of course if they are wrong shortages would result. Now tell me the Presidential election is'nt going to be about the economy.

jlw61

IanC

The timing of all this is just dreadful for the unprepared.

Not too long ago, people had home equity and/or numerous credit cards they could tap into if need be while they adjusted to the high prices.

Now, foreclosure rates are through the roof, unemployment/underemployment is up, consumer debt and bankruptcy are sky high, health costs increasing in double digits annually, AND....energy prices up up up.

In short, there is no buffer anymore for most Americans (Not that a new Mastercard is a good buffer, per se). If people cannot even afford to get to their jobs, they will be desperate. Desperate people behave irrationally. They may even support a war with Iran, who does, after all posess a lot of OUR oil.

-IanC

Novus · Light Sweet Crude Joined: Jun 21, 2005 Posts: 1637

You know if it were just $6 gas and then stabilized it wouldn't be so bad. It would be a lot like the 70s. With $6 gas a lot non-essential workers loose their jobs and the rest go into car pooling and take the bus. The thing is $6 is not the end. It is only a point from which gas will go even higher. At $15 gas and diesel even the buses stop running and the economy sinks into a true depression. When gas moves higher than that then we get a wholesale collapse of civilization. I think this will happen between now and 2012 at the latest.

Cashmere · Light Sweet Crude Joined: Mar 27, 2008 Posts: 1449

I still don't see any carpooling around here.

All I see are lines of cars, trucks, and SUVs with one unhappy looking driver.

So 4$ gas has not gotten the message across yet.

I think that a large majority of the DSEs think that "gas will come back down", and so are hesitating to make permanent changes to their routine.

I have yet to hear one story or see one ad concerning car pooling in my area.

You'd think at least a few people would now be posting looking for a partner or two or three to share the ride.
_________________
Massive Human Dieoff must occur as a result of Peak Oil. Many more than half will die. It will occur everywhere, including where you live. If you fail to recognize this, then your odds of living move toward the "going to die" group.

mark

Come back to earth.

At $4.00 demand destruction begins. At $5.00 people start making drastic changes. Right now Asian countries are experiences rapidly increasing inflation (see Weldon's Money Monitor). That's going to lessen demand. Even the producing nations who still subsidize gas to the masses are rationing demand (Iran). Other producing nations are seeing higher and higher prices not only for gasoline but food and commodities as well (Algeria, for example, I know first hand).

Inflation, scarce resources and depreciating currencies the world over need to factored into the price of energy we all use. Before gas ever reaches $15.00 a gallon here, too many world events may produce a world we hardly recognize.
_________________
Who is John Galt?

frankthetank

Someone, anyone needs to destroy the economies of India and China so we here in America can continue to drive to our mailboxes.

I'm not ready for $6 gasoline. I really need to pick up another dozen carbon arrows Smile

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"Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling"
-President Bush 11/07/07

charliehelyes · Heavy Crude Joined: Mar 27, 2005 Posts: 105

$8 gas will hardly make a effect, gas is $11 in the uk and people live fine $8 gas will just get rid of some of the fat second cars ect. I know the uk is alot smaller but its not that small, people in new york dont commute to l.a. If people live within 60 miles of where they work they will be fine. But however it will take alot of money out of the economy and will cause a short term recession maybe. $12 dollar gas would complete deystroy the economy i.e

dohboi · Light Sweet Crude Joined: Dec 05, 2005 Posts: 1128

"Think about this- at $7 per gallon, it would cost $210 to fill up a 30 gallon SUV or truck fuel tank. And a once a week fill up would cost a total of $840 per month!"

This is very funny--all those people who bought these monsters to demonstrate just how little they cared about GW or about crushing to death are now suffering at the gas pump.

It is a bit hard to feel too bad for them.

On the other hand, poor folks are getting crushed by these increases.

vision-master

TreeFarmer · Heavy Crude Joined: Jun 26, 2007 Posts: 299

I live in a small town that is about 90 miles from the nearest real city. There are a couple of "cities" in the 40,000 population range within about 45 miles though.

Here $4 gas has the price on gas on everyone's mind already. MANY people are already planning their driving to eliminate those 1 item trips and to make each trip count. I've heard reports already that people who live "out in the country" and also work out there, as opposed to working in town, are cutting back to one trip to town per week if they possibly can. They are doing things like making sure all doctor appointments are on the same day, grocery list is made out, so that they can do it all in one day.

As it is I believe that $4 gas is already bleeding a decent portion of the country dry. $5 gas will ~~cause many of them to have to consider~~ force significant structural changes to the way they live their lives, i.e. bicycles, walking, or motorcycles (if they can afford one).

I am fortunate enough to live within 1 mile of work. Obviously many people are not that fortunate.

TF