posted on Jun, 19 2008 @ 11:42 PM
I work at a luxury automobile store in the Pacific Northwest, gas prices have taken a major toll on the automotive industry. Relatively new Kias are
selling for more at auctions then what you could have bought them new a year ago. If you have a big V8 truck or SUV and you want to trade it in we are
hitting it, for sometimes, $10k below book value; our pre-owned inventory of big SUVs and trucks are mostly advertised for losses. I would hope that
oil will go down, but $50 a barrel I doubt. The U.K. is paying almost $10 a gallon for diesel, their fuel costs have been going up for years. Gas may
go down 50 cents to a dollar a gallon, I think that’s the best we will get for know, but eventually it will go up again. This is something we have
to live with and our entire country is going to have to alter their lifestyles. The world is evolving, millions in china and other countries, for the
first time, can own an automobile. Oil, like diamonds and platinum, is something you get from earth and we only have so much. Until we can come up
with a means of producing synthetic fuel at an affordable cost our lives will have to adjust to higher oil prices.
Gas will be $5.00a gallon this summer and it could keep going up, (Premium is $4.96 a gallon where I live). Any major alternatives are still five to
ten years away; we need to adapt. Oil affects more then just cars. The boating industry, which is very important to the Puget Sound summer economy, is
taking a hit. Owner/operators of semi trucks are paying $1300 to fill their rigs.
We will see the railroad industry experience a second renaissance. One gallon of diesel will move one ton of railroad freight about 360 miles. Like
Europe, trains will be all over the place. Check out your local commuter rail, I bet its filled near capacity.
Motorcycles and scooters are turning into transportation rather then recreation. My bike gets nearly 60-mpg. They think I’m joking at work when I
talk about adding a scooter franchise to our pre-owned department.
Unless we create a viable competitor to gasoline, which will force them to drive down prices, we will have to deal with $5 a gallon gas. Since OPEC
really has no competition they can do whatever they want.
“Grandpa, tell me about those things called Hummers.”