'Squawk Box' Guest Warns of $12-15-a-Gallon Gas

'Squawk Box' Guest Warns of $12-15-a-Gallon Gas

www.businessandmedia.org

“[T]he prices that we’re paying at the pump today are, I think, going to be ‘the good old days,’ because others who watch this very closely forecast that we’re going to be hitting $12 and $15 per gallon,” Hirsch said. “And then, after that, when oil – world oil production goes into decline, we’re going to talk about rationing. In other words, not only are we going to be paying high prices and have considerable economic problems, but in addition to that, we’re not going to be able to get the fuel when we want it.”

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Wow, things do not look good!!!

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

If gasoline prices were to reach 10 - 15 dollars per gallon, I would imagine that we were looking at a per barrel price of oil at around $300+ ! At this price, there would certainly be incentive enough to raise petroleum production considerably from previously untapped and/or undeveloped sources of fuel that were DOMESTIC in origin.

The processing of the vast US coal reserves into oil would become more than viable. The development of the huge American shale oil reserves in Montana, Wyoming and Idaho would become an instant certainty.

We would also see environmentally sensitive areas developed for their energy potential as any concern for endangered owls or other wildlife would be usurped by a ravenous hunger for new energy sources.

It's been said before....OIL is the lifeblood of America. Without oil, the US would, for all intents and purpose, die without oil and relatively cheap energy. If nothing else, the US would not exist in it's present form. Before that would happen, the US would, I believe, mobilize a herculean effort to guarantee
a secured level of energy independence.



[edit on 5/22/2008 by benevolent tyrant]

Ouch, that would be $24 a day to/from work for me. Over $8000 a year in gas, just to go to work and no where else!

Originally posted by benevolent tyrant
Before that would happen, the US would, I believe, mobilize a herculean effort to guarantee a secured level of energy independence.

Iraq invasion 2003 , iran invasion 200x , all to secure oil.....

reply to post by benevolent tyrant

It's been said before....OIL is the lifeblood of America. Without oil, the US would, for all intents and purpose, die without oil and relatively cheap energy.

On that note let me ask you this do you think that the rising price of oil is in fact a strategic move to actually criple America? The use of airplanes as an attack on America was a fairly inovative idea that made many say hmmm never thought of using a plane. Perhaps this is also an attack although I dont know which other countries would not be hurt as well except for the obvious oil producing countries. I guess the thing to do would be to make a list of who would be hardest hit and least hit and determine from there. I dont want this turning into a truther non-truther argument btw was just using the airplanes as an example. Just something to ponder.

Originally posted by drift393
do you think that the rising price of oil is in fact a strategic move to actually criple America?

While some of the rising, per-barrel, price of oil can be accounted by some increase in demand (emerging markets, ie. China, India), the phenomenal day-to-day price jumps are without any real precedent or reason. There is no real shortage of supply. (Yes, there is a refinery shortage which might lead to some increase in price).

Price speculation certainly does add to this spiraling cost. But in the past, with other commodities, actions were taken to curtail undue speculation and monopolization of some commodities -- ie., the Hunt Bros. and the cornering of the silver market. The same could have been done with oil

When President Bush requested that the Saudi government increase oil production to help ease the price, the request was flatly rejected. The Saudi minister said that there was no shortage.....and yes, he was correct. There isn't a shortage. What is happening here is entirely deliberate -- at least in my opinion -- and certainly could be considered to be a weapon that is meant to attack, cripple or even destroy an already fragile American economy.

I have read that their are REAL declines in oil production in mexico, russia, and other countries. It looks like we are going to have some serious problems after 2010.

reply to post by benevolent tyrant


Yes, but with an inadequate infrastructure this would take YEARS, while in the meantime everything comes to a screeching halt and implodes...

I dont think we people would allow that. There would be riots and I would be on the front lines. I think we are teetering on that point right now. We already have truckers getting involved. $6 to $7 small protests start to happen and $8 to $10 the mass protests.


Also on a side note I used to believe it was the dollar causing this but now I know for sure its not that Lindsay Williams is 100% correct on what is causing this.

[edit on 22-5-2008 by mybigunit]

reply to post by mybigunit


I also think it is the dollar. The bad thing is if the FED raises rates to compensate for the declining currency, I think it will change nothing and commods like oil will continue to spike.

So again this begs the question who is perpetuating the increase? Who has the power to manipulate the rising prices and create the dissinformation as to oil being a shortage? Very interesting path to follow. With all the contingency planning and fallover plans in place why wouldnt America step up its oil production years ago and have the equipment already in place? Rambling thoughts just trying to catch something floating in the old brain bucket I cant quite put my finger on yet.

Yes, and if you see the chart I posted above, you will see that the greatest output from the megaprojects is in 2008!!! Yet, prices are going through the roof. What does that say of the subsequent years from now, where output drastically comes down?

Originally posted by benevolent tyrant
...a per barrel price of oil at around $300+ ! At this price, there would certainly be incentive enough to raise petroleum production considerably from previously untapped and/or undeveloped sources of fuel that were DOMESTIC in origin. ...

[edit on 5/22/2008 by benevolent tyrant]

Hate to tell you this, but the "incentive" was passed about $50 per barrel ago.

reply to post by pityocamptes


The chart you provided made me chuckle actually. I had heard on a radio show yesterday that the reason for oil price increases is supply and demand. They summed the whole situation up in that one niffty little sentence. So according to that chart and the reasoning on the radio the higher the supply = higher price

Originally posted by pityocamptes
reply to post by mybigunit

 

I also think it is the dollar. The bad thing is if the FED raises rates to compensate for the declining currency, I think it will change nothing and commods like oil will continue to spike.

Heres the issue though...look at the dollar index and the dollar vs all the other currencies...it has leveled off. It really hasnt dropped but yet the oil seems to keep tumbling. Not only that if its the dollar causing our high gas then wouldnt the worlds gas be getting cheaper as their currencies are getting stronger...no theirs is going up too....to more and more I read into this I think this is a bigger issue and the dollar and supply and demand are just cop outs. You should watch that Lindsay Williams video.

reply to post by drift393


Your right, but I think they did not factor in 2 billion chinese and indian middle class individuals coming into the picture who want the same things as Americans, which takes an enormous amount of energy (oil).

reply to post by pityocamptes

Just curious any info on the actual increase per country of oil consumption from year to year? Will take a look around and see how much of an actual increase there was. Just have a hard time beliving 2 billion more people suddenly fliping on the switch so to speak. Not an attack on you pityocamptes just trying to find numbers and info.

www.foreignpolicy.com...

$15 or even $20-a-gallon gas, who cares? Some people paid the ultimate price so your car can have tires. Their lives. Google: central african republic rubber massacre. I think people should stop complaining about "expensive" gas.