sludg wrote:I already see $4.50 so I'm voting yes atleast in terms of hawaii. Also unfortunatly the political parties have nothing to do with oil prices so the Dem's have no control of us hitting $5/gallon. It seem when theres "speculation" that something bad will happen in the middle east causes gas prices to go up. Then once that bad thing does happen gas prices again go up... Funny in europe their cars get double the gas mileage that ours do. Maybe instead of driving big SUV's americans will get smart and drive more fuel efficent economy cars. what am I talking about things that will never happen. Those economy cars are too small for americans to comfterable fit thier entire life into. One day people will realize that bigger isn't always better and downsize to things that make sense.
We've released strategic reserves in the past to hold down prices. We do have control; and an election year is good motivation.
Life begins at 500hp; cheap gas please!
While all these comments are true, it should be noted that there is economic incentive to keep prices down to less than $5.00/gallon. For at that point, alternative sources of energy begin to look more profitable and thus more resources are allocated to their research. It only takes one major technological development that reduces the cost of alternative fuel to the point where gas can no longer compete; thus the economic theory of creative destruction would be illustrated once again.
O and the average cost per barrel of oil from algae is around $20.
sludg wrote:That only masks the problem momentarily. Once the election year is over the reserves will be stopped and prices will resume to climb. The parties don't have any real control over the gas prices, they only have control to mask the prices for their own ends.
Yep; and the question was about $5/gallon by the end of summer. I expect we'll artificially hold the prices down in the short term. As you say though; long term is a different story...we don't have much control. I'm sure we're not going to reduce the tax revenue to hold prices down, lol!