Posted: Fri May 23, 2008 10:32 pm Post subject: Wall Street Journal: If $4 Gas Is Bad, Just Wait
If $4 Gas Is Bad, Just Wait
Quote:
Judging from the futures markets, shock at the gas pump is bound to get worse. Maybe much worse.
Since the beginning of the year, benchmark oil and gasoline futures on the New York Mercantile Exchange both have increased by more than a third, but the average retail price of gasoline in the U.S. has risen by 22%. That bodes ill for consumers.
Quote:
If oil hits $200 a barrel, which is the upper end of Goldman Sach's prediction for prices over the next six months to two years, the gasoline picture changes quite dramatically. At $200 a barrel, crude alone would cost $4.76 a gallon. Add on the costs of refining and distributing as well as taxes, and pump prices could rise to a range of $6 to $7 a gallon.
Another mainstream news article predicting possible $6-$7 gasoline in the US. The sheeple are finally waking up. Gasoline prices have not kept pace with oil prices. I expect an even bigger jump in gasoline prices, because it will have to catch up with oil prices sooner or later.
Posted: Sat May 24, 2008 7:58 am Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
Drifter wrote:
I expect an even bigger jump in gasoline prices, because it will have to catch up with oil prices sooner or later.
When I mention this to people in conversation about the oil issue, they look at me like I'm from another planet. They just can't imagine that they are not already being maximally gouged at the pumps. And, of course, the oil companies are to blame for it all.
Joined: Apr 05, 2005 Posts: 1620 Location: Springsteen Country (NJ)
Posted: Sat May 24, 2008 9:23 am Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
drgoodword wrote:
When I mention this to people in conversation about the oil issue, they look at me like I'm from another planet. They just can't imagine that they are not already being maximally gouged at the pumps. And, of course, the oil companies are to blame for it all.
Exactly the reaction I get. The sheeple aren't waking up. They're still in the dream world of infinite resources at cheap prices. They're not waking up because their rulers are keeping them asleep with alternate explanations rather than letting them in on the truth that oil supply is stagnant and could start to drop at any time.
After all, if the people actually believed they were about to lose their cushy lifestyles, they might stop consuming and start preparing, or worse, riot in the streets and march on the rulers' seats of power.
The sheeple will be kept asleep just as long as possible. _________________ Joe P. United Political Debate
"Only when the last tree is cut; only when the last river is polluted; only when the last fish is caught; only then will they realize that you cannot eat money." - Cree Indian Proverb
Posted: Sat May 24, 2008 9:23 am Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
drgoodword, North Americans are going to have to realize sooner or later that this is a new world. Things are different now. The world isn't awash in cheap oil any more. All that matters now is that each of us should mentally and financially prepare for what is coming. I say to hell with the sheeple. Doesn't matter what they think. They are too afraid to face reality. All we can do now is prepare and not worry so much about the ignorance of others. They will eventually wake up to the reality of peak oil.
Last edited by Hogan on Sat May 24, 2008 9:27 am; edited 1 time in total
Joined: Apr 06, 2006 Posts: 2956 Location: 3 miles NW of Champoeg, Republic of Cascadia
Posted: Sat May 24, 2008 10:21 am Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
Drifter, man, why didn't you excerpt this little nugget:
Quote:
U.S. drivers haven't radically changed their behavior, and it is unclear at what price it becomes unprofitable for Americans to go about their usual day-to-day activities, said Eric DeGesero, executive vice president of the Fuel Merchants Association of New Jersey.
"Maybe at $6 or $7 a gallon, it becomes less attractive to go to work," Mr. DeGesero said. "We haven't hit that point yet, but we might soon."
I read in the NYT that consumer confidence is at its lowest point since 1980. I detect a certain malaise! _________________ Cogito, ergo non satis bibivi
I'm just gonna find a cash machine.
Joined: Sep 16, 2004 Posts: 4279 Location: Southwest WI
Posted: Sat May 24, 2008 10:21 am Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
I think most people need a smack up side the head... and $6 gasoline should help accomplish that.
Bring it on. I wouldn't mind a little more peach and quiet... although the riots could get loud. _________________ "Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling"
-President Bush 11/07/07
Posted: Sat May 24, 2008 10:49 am Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
Hasn't gasoline become just a byproduct of diesel production? The world needs diesel to run trucks, pumps, industry, and especially to build new cities in China and India etc. That suggests that diesel prices will come down before gasoline will go up. _________________ ree rah rip ram. sunofabitch godamn. hidey didey christ almighty. rah rah crap
Posted: Sat May 24, 2008 11:28 am Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
TheDude wrote:
Drifter, man, why didn't you excerpt this little nugget:
Quote:
U.S. drivers haven't radically changed their behavior, and it is unclear at what price it becomes unprofitable for Americans to go about their usual day-to-day activities, said Eric DeGesero, executive vice president of the Fuel Merchants Association of New Jersey.
"Maybe at $6 or $7 a gallon, it becomes less attractive to go to work," Mr. DeGesero said. "We haven't hit that point yet, but we might soon."
I read in the NYT that consumer confidence is at its lowest point since 1980. I detect a certain malaise!
How did I miss that?! Even if they have jobs to go to by then.
Posted: Sat May 24, 2008 11:35 am Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
pstarr wrote:
Hasn't gasoline become just a byproduct of diesel production? The world needs diesel to run trucks, pumps, industry, and especially to build new cities in China and India etc. That suggests that diesel prices will come down before gasoline will go up.
Very true, pstarr. Diesel fuel is what makes this world go around right now. Way more important than gasoline. I wonder at what point the refineries start cutting back gasoline production to make room for the more important diesel fuel production. As we all know, (especially) the US heavily depends on diesel fuel to run the all those big rigs. Without them, America would instantly come to a standstill.
Joined: Feb 20, 2005 Posts: 2679 Location: Uppsala, Sweden
Posted: Sat May 24, 2008 11:41 am Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
The fools at WSJ doesn't appear to know that futures have no predicitive power. They are just bets. You might just as well divine gasoline prices from betting on horse races.
If you look at how the 6 month futures have behaved, you'll notice that they have always been trading at around $20 a barrel until the invasion of Iraq since when they have followed the oil price upwards.
Just look at what 6 month futures were trading for 6 months ago. $130 a barrel? Hardly. _________________ Peak oil is not an energy crisis. It is a liquid fuel crisis.
Joined: Sep 14, 2004 Posts: 6150 Location: Rural Virginia
Posted: Sat May 24, 2008 12:49 pm Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
alokin wrote:
I just read in "der Spiegel" that $4 a Gallon of petrol is about 0.7 EUR a liter - Isn't this ridiculously cheap?
Not cheap in the US. Almost the entire country was engineered and built around cheap gasoline. Without it we disintegrate.
The efforts to adjust so far are laughable. For example, on the PBS "News Hour" last night they had a segment on gasoline prices, and the analysis concluded that the problem is mainly psychological. TOTALLY CLUELESS. _________________ "Actually, humans died out long ago."
---Abused, abandoned hunting dog
"Things have entered a stage where the only change that is possible is for things to get worse."
---Me and my brother
Posted: Sat May 24, 2008 1:12 pm Post subject: Re: Wall Street Journal: If $4 Gas Is Bad, Just Wait
Heineken wrote:
alokin wrote:
I just read in "der Spiegel" that $4 a Gallon of petrol is about 0.7 EUR a liter - Isn't this ridiculously cheap?
Not cheap in the US. Almost the entire country was engineered and built around cheap gasoline. Without it we disintegrate.
The efforts to adjust so far are laughable. For example, on the PBS "News Hour" last night they had a segment on gasoline prices, and the analysis concluded that the problem is mainly psychological. TOTALLY CLUELESS.
Much of our fuel use is not elastic. We have long commutes, oversized vehicles, and especially giant homes situated without regard for climate, solar orientation, prevailing winds, neighbors, municipal services, transport hubs, and community.
You can buy a Prius or ride a bike and save a few percent energy but your other 120 energy slaves are still working full time. Monsterous earthmoving equipment digging rock phosphate for fertilizer and ore for tin cans. Giant industrial systems knocking out food cartons, flimsy plastic bags, sneakers, undewear, 100-car coal trains running morning, noon, and night. Entire cities lit for security and navigation. THIS STUFF CAN NOT BE TURNED OFF. We are so f*cked in so many ways. YIKES _________________ ree rah rip ram. sunofabitch godamn. hidey didey christ almighty. rah rah crap
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