MSN: "What if gas cost $10?"

Marie · Tar Sands Joined: Apr 13, 2005 Posts: 29

Check out this gem I was linked to while checking my hotmail this morning:

http://articles.moneycentral.msn.com/SavingandDebt/SaveonaCar/WhatIfGasCost10DollarsAGallon.aspx

If the MSM is carrying an article on peak oil (though not in so many words, of course) I'm inclined to think peak is here. It even quotes Simmons and Heinberg, and it all but acknowledges that we WILL have $10/gallon oil; it's simply a matter of when, not if.

Of course, the article assumes a "hakuna matata" attitude so as not to scare anyone (god forbid). There would just be a short term recession before the economy adjusted, we'd switch to solar, wind, and wave power, cities would be revitalized as people started growing their own gardens, yadda yadda. We might have some civil unrest, but nothing much would change except that we wouldn't be able to afford bottled water and life would be a little quainter, like it was in the 1950s.

As laughable as the article's spin is, seeing PO discussed so matter-of-factly in the MSM is a little scary.

LGW · Tar Sands Joined: Aug 31, 2005 Posts: 25 Location: Sweden

$10/gal? Peanuts.

Many European countries are at that price level. I see more huge cars rolling around than ever before. My guess is that gas would have to rise to at least $20/gal before any significant change in car use and driving patterns occur.

dinopello · Posted: Thu May 22, 2008 7:49 am Post subject: Re: MSN: "What if gas cost $10?"

The thing is that $10 a gallon is a very reasonable price for what it can do for you. The problem is that for many americans they are completely and utterly dependent on using a lot of this stuff just to survive their daily lives and in that case it is not healthy.

It's like around here you might pay $5 to $8 for a pint at a bar which is pretty high, but if you don't drink often or to excess then it is very affordable and even enjoyable if the atmosphere of the bar enables socialization.

Driving out to the mountains to go hiking with a few friends is still a bargain at $10/gal and it really wouldn't affect my choice to do that one bit. In fact, it could become more enjoyable if the roads are less crowded. But if I had put myself in a circumstance where I had to drive 100 miles a day to get to my job and my wife did the same and the kids had to be driven to soccer and we had to drive to get food etc. it would be a very different situation.

vision-master · Posted: Thu May 22, 2008 7:59 am Post subject: Re: MSN: "What if gas cost $10?"

MarkJ · Heavy Crude Joined: Mar 25, 2008 Posts: 215

Massive amounts of timber would be clearcut for firewood when people could no longer afford heating oil, kerosene and propane. Coal stoves and boilers will make a comeback. Heated apartments will become a thing of the past.

Kingcoal · Posted: Thu May 22, 2008 8:25 am Post subject: Re: MSN: "What if gas cost $10?"

Like a lot of other articles by laymen on the subject, the author ignores the ground he is standing on. People just don't get how our economy is literally floating on a sea of oil. At $10/gal, the economy should be in serious depression. I define economic depression as massive unemployment. During the Great Depression we had 25% unemployment and I think we'll top that. As people divert all their disposable income to energy, most of our economy should run aground. As that happens, these same people who are scrimping and saving to fill their tanks will find that their employer simply can't stay in business anymore due not only to increased energy costs, inflation, etc, but mainly because the customer base has dried up. Something like 75% of economic activity is based on consumer spending - do the math. It don't look pretty.
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allenwrench · Intermediate Crude Joined: Apr 23, 2008 Posts: 893

frankthetank · Posted: Thu May 22, 2008 9:22 am Post subject: Re: MSN: "What if gas cost $10?"

That would be bad. How would cities and counties and states work with $10 gas? Just looking at the city here, they have hundreds of vehicles (gas guzzling i'm sure) to operate daily. The county has all their trucks and what not. Companies (power/cable/phone/etc) have boatloads of trucks/cars/etc to operate daily. Now how do you think that would effect them? Costs would skyrockets for one. Next would be job cuts. Tax increases! Now the newly unemployed have no money on top of the fact that everything just doubled/tripled in price. The $5 footlong starts costing $10. That 44 cent can of beans costs $1, etc.

We're Fark. Mass unemployment/increased crime/higher suicide rates is on its way. I was just expressing some of my views to a police officer the other day and he tended to agree. Too bad he may be patrolling on foot, because the cruiser is on E!

This $135 oil will take a couple of months to really work through the system the way it is. I'm guessing a nice round of price spikes in a couple months.
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PrairieMule · Posted: Thu May 22, 2008 9:48 am Post subject: Re: MSN: "What if gas cost $10?"

Revi · Fusion Joined: Apr 25, 2005 Posts: 3448 Location: Maine

olekriri · Tar Sands Joined: Apr 22, 2008 Posts: 33

I don't think much will change at $10/gallon. Only the SUV's will be gone. 22 countries in Europe are now paying $8-$11/gallon and they're not in the streets complaining...

bigfnman · Tar Sands Joined: Apr 06, 2005 Posts: 32

Marie · Tar Sands Joined: Apr 13, 2005 Posts: 29

gnm · Posted: Thu May 22, 2008 11:03 am Post subject: Re: MSN: "What if gas cost $10?"

MarkJ · Heavy Crude Joined: Mar 25, 2008 Posts: 215