Get Ready to Spend $6,000 a Year on Gas

Get Ready to Spend $6,000 a Year on Gas

www.alternet.org

Two years ago a leading economist published a study provocatively titled: "What would $120 oil mean for the global economy?" Answer: a global recession, if the price stayed there for a year.

Now the future has arrived, with the United States and other nations getting a double whammy from both the mortgage crisis and oil futures hovering at $120 per barrel. If oil prices stay stratospheric, the cost of fueling cars and planes could slash US economic growth up to 2.3 percent and global growth by 3.6 percent, says Robert Wescott, former chief economist of the president's council of economic advisers and author of the $120 oil report.

(visit the link for the full news article)

That sounds like an awfull lot of money to spend on fuel, but it's no real surprise.

The question is what will people do about it?

Smaller, more fuel efficient cars may be an answer.

There's also the question of where this will end, and who is ultimately responsible.

Is it possible that the price hikes are part of a plan to force people to use less fuel, in order to conserve oil reserves and make them last longer?

www.alternet.org
(visit the link for the full news article)

I'm one of the few pedestrians left, apparently. Thank the higher power of your choice!

Seriously though, this sucks, but we all knew fuel was a limited option, and yet the world carried on as if fuel supplies are indefinate and there will be no shortages.

reply to post by C.C.Benjamin


I don't drive - I have a license, but I've never driven apart from to pass my test.

I have always walked, used public transport or cycled - and it's saved me a lot of money.

People seem to think that cars give them freedom, when in fact they are chained to them.

I'm always reminded of a spike milligan poen when I think of peoples attitudes to cars, and the environment - it's called "Values '67" but is equally apt today, maybe even more so...


Values '67

Pass by citizen
don't look left or right
Keep those drip dry eyes straight ahead
A tree? Chop it down- it's a danger
to lightning!
Pansies calling for water,
Let 'em die- queer (expletive)-
Seek comfort in the scarlet, labour
saving plastic rose
Fresh with the frangrance of Daz!
Sunday! Pray citizen;
Pray no rain will fall
On your newly polished
Four wheeled
God

Sheer genius.

[edit on 14/5/2008 by budski]

I hear you.

When I was in my teens, all I heard from car owners was variations on "I spend [x-hundred pounds] on my car, because [tiny and incredibly expensive component] has broken!"

As that has been the battlecry of pretty much every car owner I have ever met since then...I wonder why the hell I'd need to hemorrage all my money into one.

Instead, I have plenty of disposable income!

I work in the Oil and Gas industry in exploration. Get ready for it to go WAY WAY over 120 per barrel. Welcome to the end of cheap energy. Lyndsey wtf Williams was full of crap.

In the post-energy world, I'll be the forerunner of the new breed of man - a breed who can walk to the end of the street without being out of breath...

Originally posted by Memysabu
I work in the Oil and Gas industry in exploration. Get ready for it to go WAY WAY over 120 per barrel. Welcome to the end of cheap energy. Lyndsey wtf Williams was full of crap.

Lindsey Williams full of crap meanwhile he told people 3 years ago that we would be paying $5 to $6 a gallon soon and everyone laughed at him....I dont think he is full of crap I think u need to check your records....

Years ago, we decided to move way out in the country.
It's great, but as anyone knows who lives 20 miles from the nearest city, you need a car. You can't do your weekly shopping on a bike.
Bought a car that's not too bad on gas, but with prices as they are, it's still going to cost a lot to fill it up.
I'll think twice before driving to the mall to pick up anything, unless it's a necessity.
With the "oil men" running the country....and stockpiling oil when prices are as high as they are, kinda makes me go ...hmmmmmm.
And no. Not stockpiling isn't going to "solve" this problem, but stockpiling oil, imo, seems to be adding insult to injury.

Yep, that's a problem in a country as big as america, but there may be a solution, in the shape of public transport.

Here in the UK, even in very rural area's there are bus services - there's even a bus service run by a supermarket (tesco's) where I live and I know it's the same in other parts of the country.

It's called a shopper bus (original! )

I know people have some kind of dislike for public transport, but pretty soon, it may be all people are able to afford.

An hourly bus service doesn't take that much to run - and the supermarkets can help offset the cost of it.

So there's your answer, although it would obviously need refining from country to country.

Originally posted by budski

Is it possible that the price hikes are part of a plan to force people to use less fuel, in order to conserve oil reserves and make them last longer?

Thanks for spotlighting an important function of free-market enterprise budski. It's not a plan per se, but the dynamic by which natural market forces work to conserve existing resources - insure future supply - limit the potential for price shocks/distortions - spur capital investment in more efficient technologies.

In the case of oil, government intervention may garner popular favor from alarmed constituents, and guarantee a few votes towards re-election...but to artificially suppress prices, would only allow for continued over-consumption of our most valuable, non-renewable resource. What was congress doing as oil steadily rose from $25bbl in just five years? Setting ethanol quotas, and dolling-out taxpayer Dollars in the form of corn subsidies? They essentially sat on their duffs until the peasants broke-out the torches & axe-handles at $120+. Who do they scapegoat?...naturally it's the 'speculators' (congressional hearings)...and those foreigners (Bush insults India). Politicians will insure that we look everywhere...but at their SPENDING HABITS.

It's all about the inelastic fundamentals of oil...and the expanding MONEY SUPPLY.

As a social function, the 'spec premium' is a barometer. As a market function, it allows producers to properly allocate resources.

Since 1st quarter 08, SUV sales have declined, public transportation use has increased, car-pooling is back in vogue, and major auto manufacturers are announcing serious commitments to alternative technologies...lets hope congress doesn't muck-it-up.

I don't know who is to blame, nor could I care - because frankly I am powerless to do anything about that.

However, I do have advice for anyone affected by this. Do not wait until next year. Do not wait to see when fuel prices will stabilize. Do not wait to see how much you can afford. Gasoline will forever increase in price now so you need to act now.

The sooner you sell your trucks, SUV's, and low mileage vehicles the better. You may take a loss on them, but you will be better off later. If you wait until next year, they will be the more difficult to sell or the trade in will be lower. Don't hesitate as if things might become still manageable - they won't.

Get rid of the vehicles that are costing you a fortune and buy an economy car - it doesn't have to be a new hybrid. An older Honda or something similar with a 4 cylinder would suffice. You need something that has enough space to get to the grocery store and to haul a little bit and can hold at least 3 people. This would be your primary transport.

Also think about getting a motorcycle, scooter, and bicycles. Whenever you are needing to get somewhere and you are only bringing yourself. If you can fit your belongings into a backpack and the distance is short consider these as your main transportation.

I mention bicycles, but only for the most hearty. I realize everyone doesn't live within short distance of where they are going, but it is incredibly cheap, doesn't require fuel, license, registration, or insurance. Also, it is healthy for you and you'd be amazed at all your missing by driving in a car.

I started riding bicycle for leisure last summer. This summer I plan to double my mileage and ride more into work, for which I already have a few times when it is warm enough. It is 10 miles each way, but it can be done just be leaving for work a little earlier.

It's time to quit complaining about it, quit thinking that if your voice is loud enough someone higher up will fix things and do something about it yourself.

Higher prices will mean consumers buying less gasoline. This in turns reduces demand, which will lead to surplus stocks or an easing of the shortage of stocks.
Thus prices will fall.

Very, very crude supply and demand economics.

Then again, I dont particularly mind paying up to $10/ gallon (current UK price). For the mobility which it affords me, its still a damn sight cheaper and a hell of a lot nicer than public transport. Cost of single bus ticket for a journey of 6 miles: £2.70. Cost in Petrol: £1.50. Even if the petrol prices double to $20/ gallon (£2/litre), I would still use my car because it is still the cheapest method of transport for me.

Say what you like about public transport Budski, but try one week in a Manchester bus with pikeys smoking weed and scallies listening to abnoxious music out loud ... I can practically guarantee that you would be craving a car by the end of that week.

I posted the following on another related thread but thought I'd give it another airing as it got no replies or comments.

Something that just struck me over the weekend, resulting in one of those "Mmmmm" moments.

1. We are being told that the high cost of Gasoline / Diesel fuel is due to the increasing price per barrel of crude and increased demand. Now then, production has not increased any significant amount and yet we see no drop in availability due to increased demand elsewhere.

2. The price, in $USD has indeed increased, but at the same time the $USD has dropped in value against other currencies.

3. Given the fact that the oil companies are paying more $USD per barrel to the producers and the subsequent rise in price at the pumps, I'd expect to see a drop or, at the very least, a flattening of oil company profits. However, all the big oil companies are posting never before seen record profits. Then there is the extra revenue to the government from the increased prices. I wonder how much extra the treasury has received from fuel duty in the last few months, against the same time last year?

I smell a great big dirty rat.

Oh! I almost forgot, diesel fuel could well rise a helluva lot more. I read a couple of weeks ago that moves are underway to make it mandatory for shipping lines to convert their engines to run on diesel instead of the current fuel oil, thus pushing up the price due to the extra demand. In fact, rigging the system to deliberately increase demand.

I already spend about £2,500 or more a year on fuel as my office is 50 miles from home. I can't use public transport as it'd be even more expensive, take about 2 1/2 hours each way and so add about 5 hours to my usual 10 - 12 hour working day. I can't move closer to the office as it's more expensive than where I am now and in the current climate I'd probably be unlucky enough to rent somewhere then get evicted after the owner forecloses on the property due to falling prices and higher payments

I can see a time in the very near future where I will perhaps start working from home more, maybe a couple of days a week...thanks heavens for a fast broadband connection at home and VPN.

Kind of hard trying to evac from a city in a rice burner. Might have to go cross country if the SHTF. Might be best to buy an older 4x4 and have it filled up and ready to go (not a daily user) for just an event...

reply to post by 44soulslayer


I've lived in manchester, and birmingham and visited london on many occasions, and I've only ever used public transport.

I think you over-estimate the discomforts of public transport - I've never had any problems using it.

Maybe the problem lies with you?

I completely admit it.

I dislike public transport, but unlike other drivers I have no problem paying the prevailing price of petrol because I see the relative benefits and comforts of having a car.

Perhaps you ought to take another trip to manchester and see the state of public transport now Perhaps it would help if I mention that it was a bus which passed through Mosside.

Moss side, whalley range, salford

or
Handsworth, cape hill, mosely, aston/witton, lea bank

or

any other area you care to mention.

yada yada

Big deal - been there, done that, didn't bother me a bit - and nor did anyone else bother me.

If you're having all these bad experiences, then you must be doing something wrong.

Not "bad experiences" as such.

I must admit Im a bit of a snob. I dislike having to sit next to chavs who blare out loud music while smoking to weed.

Its just my personal dislike of having to sit next to such people, if Im honest.

Thus I readily pay the price for car ownership and the ensuing comforts and freedoms.

reply to post by 44soulslayer


You don't seem to realise that this is also about personal and collective responsibility.

What are you going to do when the oil runs out?

Trust that someone has developed a different fuel?

Or just say "sod the future generations" and keep your nose in the trough for as long as you can?