There's always a slight bump this time of year, aggravated this year by Libya speculation. <Famous last words> It'll settle back down. </famous last words>.
Only a person without a background in business would compare a commodity like electricity to a novel product such as VCRs and DVDs. There is value to an individual in choosing a DVD over a VCR tape and that value is significant. However, as the price of a good increases demand decreases. If the price of DVDs reached too high of a level, people would substitute from DVD to a cheaper alternative. On the other hand, there is little value to a consumer in choosing one form of electricity over another. Some green customers might choose hydro or possibly nuclear or wind over fossil fuel based electrical generation. But, the premium that even greenies would pay for non-fossil fuel based electricity is very small and as the price increases, the demand very quickly falls.
If your 30mpg car works for you that's fine. It won't pull my cattle trailer full of cattle. Just don't try to make me buy something I can't use and don't want. I'll repeat it again. The administration is not doing anything about the oil situation because they want oil to go even higher. If they would open up the Gulf to drilling again, things would settle down a bit, IMO. The market is reacting to what they see in Libya.
I didn't say the admin was causing prices to go up, but that a decision to open the gulf to drilling again means a change in the market. The last time oil ran up to $4 and more the Bush admin opened up some reserves and allowed some more drilling. I think it could happen again, but I'm banking that the current admin want to play chicken with the economy to try to force people to alternative fuels through high fuel prices. European cars still run on diesel and gas, they aren't any greener in that respect.
I think fuel prices at the current level are already driving people's market decision to buy more fuel efficient vehicles or change driving patterns when available. Actually I think that has been going on since 08 when fuel prices skyrocketed last time. But the administration is not going to want fuel prices to go any higher b/c that will only hurt further economic growth at a time when that is issue #1 for the administration.
Friday Nite- If you go to the other thread- West Mall Mistruths on Oil Prices- I have links showing where 2/3 of existing drilling permits go unused in the US. And I also have links showing that this is a supply demand issue- not a political one. No administration is preventing any meaningful drilling from happening. Your gas price is up because there is too much demand in the world and not enough supply. Buy whatever cattle truck you want- no one has ever said otherwise.
$3.68 at the pump on Friday. So far that is an increase of 44 cents in 22 days. And predictions are for it to keep rising.
Honest question - where are they getting the numbers on those initial cost differences? For example, it cites the Ford Escape hybrid as costing $3500 more than the regular model. However, if you go to Ford's web site, it shows the Escape MSRP at $21,215 and the Escape hybrid MSRP at $30,045, a difference of almost $9k.
We have the resources to drastically reduce our dependence on oil imports, but we don’t have the will to exploit those resources.
$4.07 this past week at same gas station. Up from $3.24 when this thread started. Price of crude has gone down over last week and Prediction is for price at pump to drop a whopping 20 cents. Price currently at pump is about where it peaked in 08 but price of crude is well below where it peaked. I don't understand this variance.
Gas still hovering around $4.08 at my gas station. Here is a recap of what I posted on this thread: 2/18 - $3.24 3/01 - $3.48 3/02 - $3.53 3/13 - $3.68 4/07 - $3.88 5/06 - $4.07 5/24 - $4.08 84 cent increase/gallon since 2/18 (about 3 months)....a 26% increase!! That is an extra $16.8 per 20 gallon tank of gas.
Well, this summer driving season costs about 100% more than the summer driving season in 2007. So, something fundamental is probably happening..
Where are you living, Hornpharmd, that gas is still over $4.00? It's below $3.60 in my neck o' the woods. The Link
