Gas $7 Per Gallon in Four Years

[metta]

What Happens When Gasoline Exceeds US$7.00 Per Gallon?


http://www.treehugger.com/files/2008/05/gasoline-700-bucks-gallon.php

Will there be any U.S.-based auto manufacturers left? The answer depends entirely on how fast they can transform their product lines. Chrysler is in deep trouble already. That probably means more stress for the Midwest.
Will there be any domestic airlines left? The so-called legacy airlines (American, United, Northwest, Delta and Continental) would either try to combine into one big carrier or simply disappear. They're having serious troubles surviving as it is. This means big troubles for cities where these airlines operate hubs that generate thousands of jobs like Atlanta, Cleveland, Newark, Houston, Chicago, Denver, Dallas, Memphis and Minneapolis-St. Paul.
​

How will big convention cities survive? Places like Las Vegas, New Orleans, Atlanta, Chicago, New York, San Francisco and Houston have thriving convention industries, all built around the capacity of airlines to transport conventioneers to and from the destinations relatively cheaply. Emphasis on the word "cheaply." How will tourist destinations like Florida or Hawaii cope? Add to that places like, say, Williamstown, Mass., whose Williamstown Theater Festival is a big draw, or Ashland, Ore., home of the Oregon Shakespeare Festival. They're not close to major cities.
​

Here's a future puzzle. Write down the cities Charley mentions. Circle, in blue, the cities facing a water shortage; red, those at increased risk of hurricanes; black, those likely to experience severe job losses.
No away from it, is there?
That transition town idea is going to look pretty attractive in a few years, if this is indeed the future we are heading toward.

 

[metta]

I was commenting in gentry's thread a few days ago that



at 3.785 litres per US gallon, that makes at the above exchange rate

1 US gallon equivalent = US$ 8.0236


Now! not in a silly 4 years time.

-So, would that mean if gas prices are going to be $7-10 per gallon in 4 years that it will be around $14-$20/gallon in the UK?

Current price in LA is $4.14/gallon

 

[spearsfan20]

I may have too much optimism on stuff like this but I doubt we will reach that mark! The reason people believe that gas is going to hit $6 or 7$ a gallon is they have a mentality that oil prices are going to continue to surge and the government is not going to help resolve issues with Saudi Arabia or start rebuilding our oil refineries on the the coasts.

However, I wouldn't be surprised if we start paying more than $4 of a gallon on regular unleaded gas over the summer. Hopefully, people will just drive to work and home and not make situations worse by traveling that can spike up gas prices.

I believe that tourism and retail will suffer this summer with loss of profit from these ridiculously high gas prices. Not exactly good news, but the price of oil is not spiking up 5 or 10cents that allows the gas prices to go up a dollar like it has been doing over the past months. The price of gas has only shot up to one cent. Maybe there is a slowdown in sight. But I will take with a grain of salt.

 

[metta]

I may have too much optimism on stuff like this but I doubt we will reach that mark! The reason people believe that gas is going to hit $6 or 7$ a gallon is they have a mentality that oil prices are going to continue to surge and the government is not going to help resolve issues with Saudi Arabia or start rebuilding our oil refineries on the the coasts.

However, I wouldn't be surprised if we start paying more than $4 of a gallon on regular unleaded gas over the summer. Hopefully, people will just drive to work and home and not make situations worse by traveling that can spike up gas prices.

I believe that tourism and retail will suffer this summer with loss of profit from these ridiculously high gas prices. Not exactly good news, but the price of oil is not spiking up 5 or 10cents that allows the gas prices to go up a dollar like it has been doing over the past months. The price of gas has only shot up to one cent. Maybe there is a slowdown in sight. But I will take with a grain of salt.

That is nice to be optimistic but I think that it is also important to be realistic. You can't just ignore the increase world wide demand, especially from countries like China, that is working on building a huge middle class.

I just read yesterday that they think that Russia has expereienced an oil peak, which is critical to that country becuase it is the biggest chunk of the GDP. Russia, by the way, is the 2nd World's largest exporter of oil.

 

[metta]

http://news.yahoo.com/s/ap/20080606/ap_on_bi_ge/oil_prices;_ylt=AkpELfrgARyK0ZvpOnD1XlMDW7oF


Oil rises near $132 on price spike prediction

Prices pushed sharply higher Friday after Morgan Stanley analyst Ole Slorer said he expected strong demand in Asia that could drive prices to $150 by July 4.

Asia is taking an unprecedented share" of Middle East exports to build up stocks

Earlier this week, Federal Reserve Chairman Ben Bernanke indicated that more interest rate cuts are unlikely in the U.S., sending the dollar higher and pushing oil prices lower.

http://news.yahoo.com/s/nm/20080606/bs_nm/markets_oil_dc_12;_ylt=AjgsHfnA5J49iFpbQrs2NR9v24cA

Remarks by Israel's transport minister that an attack on Iranian nuclear sites looked "unavoidable" and a Morgan Stanley report predicting oil could reach a record high of $150 by July 4, also sent crude prices roaring upwards.

The dollar fell further after figures showing a jump in the U.S. unemployment rate to 5.5 percent last month, which was higher than analysts were expecting.

Investors have used oil and other commodities as a hedge against the weaker dollar and inflation as the housing crisis and high fuel prices batter the U.S. economy.

"World oil demand growth is still accounted mostly by China, the Middle East and Latin America