HOLY fuck that would kill alot of us....:smoker2:
Dante, over the next decade $3.50 gasoline will seem like a bargain as many areas in usa are already over $3. $5 should be expected and would not suprise me to see $10 or more until demand drops and/or alternative energy sources are fully implemented. Of course this is a long term projection and not because of the recent hurricane.
E-85 fuel - $1.70/gallon. It burns faster, so you'll only get 80-85% of the mpg you currently get, but it's still much cheaper.
www.e85fuel.com
What is E85?
E85 is the term for motor fuel blends of 85 percent ethanol and just 15 percent gasoline. E85 is an alternative fuel as defined by the U.S. Department of Energy. Besides its superior performance characteristics, ethanol burns cleaner than gasoline; it is a completely renewable, domestic, environmentally friendly fuel that enhances the nation's economy and energy independence.
Today, the U. S. imports more than half of its oil, and overall consumption continues to increase. By supporting ethanol production and use, U.S. drivers can help reverse that trend. 85% ethanol can reduce pollution. Government tests have shown that E85 vehicles reduce harmful hydrocarbon and benzene emissions when compared to vehicles running on gasoline. E85 can also reduce carbon dioxide (CO2), a harmful greenhouse gas and a major contributor to global warming.
Although CO2 is released during ethanol production and combustion, it is recaptured as a nutrient to the crops that are used in its production. Unlike fossil fuel combustion, which unlocks carbon that has been stored for millions of years, use of ethanol results in low increases to the carbon cycle.
Ethanol also degrades quickly in water and, therefore, poses much less risk to the environment than an oil or gasoline spill.
www.e85fuel.com
What is E85?
E85 is the term for motor fuel blends of 85 percent ethanol and just 15 percent gasoline. E85 is an alternative fuel as defined by the U.S. Department of Energy. Besides its superior performance characteristics, ethanol burns cleaner than gasoline; it is a completely renewable, domestic, environmentally friendly fuel that enhances the nation's economy and energy independence.
Today, the U. S. imports more than half of its oil, and overall consumption continues to increase. By supporting ethanol production and use, U.S. drivers can help reverse that trend. 85% ethanol can reduce pollution. Government tests have shown that E85 vehicles reduce harmful hydrocarbon and benzene emissions when compared to vehicles running on gasoline. E85 can also reduce carbon dioxide (CO2), a harmful greenhouse gas and a major contributor to global warming.
Although CO2 is released during ethanol production and combustion, it is recaptured as a nutrient to the crops that are used in its production. Unlike fossil fuel combustion, which unlocks carbon that has been stored for millions of years, use of ethanol results in low increases to the carbon cycle.
Ethanol also degrades quickly in water and, therefore, poses much less risk to the environment than an oil or gasoline spill.
by the way, your vehicle must be properly equipped to run on the hotter burning fuel. If you want to check if it is, check here:
http://www.e85fuel.com/e85101/flexfuelvehicles.php
http://www.e85fuel.com/e85101/flexfuelvehicles.php
When people who don't really have much insight into the situation other than what prices they see at the local gas stations chime in, that is the time to realize there is certainly some froth in the price. Sort of like the story about selling when the shoeshine boy or the cab driver start giving out stock tips or tell you they are getting into real estate.
I have been s*** on by others for my views, but they are based on a lot more valuable insights than the market hysteria right now. As long as the market is going nuts over this stuff of course the price is going to inflate. But when economists making 6 figure incomes for the major oil companies come out with forecasts that speculators and the average Joe scoff at, its time to rethink just how much sense does all this hype make? These economists from three oil majors, backed by economic review from major banks, are all dealing with billions and billions of dollars at stake. Their forecasts are driving billions of dollars of investment and spending decisions.
When the local radio yahoo tells you the price will be $5 because of three reasons he came up with in the shower, I will leave it to you all to figure out what just might happen. But I will chime in and say I don't think prices will even hit $3 on a national average. I think this event just might be what it takes to burn a hole through some of the speculators out there. When they leave this particular market, so will a lot of other money. In any case this is a short term issue and give it a few years and you all will be surprised at how much cheaper oil and gasoline cost. Its not a straight path up as some pundits seem to think. There are much bigger forces out there driving up the price today and there will be opposite forces driving the price down in the next 2-5 years.
I have been s*** on by others for my views, but they are based on a lot more valuable insights than the market hysteria right now. As long as the market is going nuts over this stuff of course the price is going to inflate. But when economists making 6 figure incomes for the major oil companies come out with forecasts that speculators and the average Joe scoff at, its time to rethink just how much sense does all this hype make? These economists from three oil majors, backed by economic review from major banks, are all dealing with billions and billions of dollars at stake. Their forecasts are driving billions of dollars of investment and spending decisions.
When the local radio yahoo tells you the price will be $5 because of three reasons he came up with in the shower, I will leave it to you all to figure out what just might happen. But I will chime in and say I don't think prices will even hit $3 on a national average. I think this event just might be what it takes to burn a hole through some of the speculators out there. When they leave this particular market, so will a lot of other money. In any case this is a short term issue and give it a few years and you all will be surprised at how much cheaper oil and gasoline cost. Its not a straight path up as some pundits seem to think. There are much bigger forces out there driving up the price today and there will be opposite forces driving the price down in the next 2-5 years.
Not so sure if gas will go down this fall after the summer vacationing season ends.
Alot depends on the damage that Katrina does in the gulf and to whatever if any refineries there are on the gulf coast.
Probably will go down some but nothing that will amount to the increase.
The USA MUST find alternate means as there are more and more people and more and more gas consumeing machines.
One thing that is a fo sure...ALL those gas burning SUV's that everyone rushed to the dealerships to purchase in the last few years, will most certainly be on the used cars lots.
I have owned big cars ALL my life but now thinking about stepping down to a smaller car....Sad but true !
Alot depends on the damage that Katrina does in the gulf and to whatever if any refineries there are on the gulf coast.
Probably will go down some but nothing that will amount to the increase.
The USA MUST find alternate means as there are more and more people and more and more gas consumeing machines.
One thing that is a fo sure...ALL those gas burning SUV's that everyone rushed to the dealerships to purchase in the last few years, will most certainly be on the used cars lots.
I have owned big cars ALL my life but now thinking about stepping down to a smaller car....Sad but true !
The demand people in the markets worry about now is winter demand for heating oil. Usually by now inventories of gas are falling because the refineries are doing the switchover. Inventories are falling, but the rate of usage is not so no guarantees we see the drop in gas prices we have in the past. In fact the biggest drop in price isn't around this time of year, it is usually in late July. We obviously didn't get that this year. I just wonder in this world of overreaction and amazing focus on every tidbit of oil news are we going to have crazy oil markets in December as a winter storm forms in the Gulf of Alaska and its predicted to bring snow and cold in the coming week? Its getting ridiculous out there how much pricing of potential blips in the market are getting put in on a daily basis.
I say this because there are two strands here, the short and long term picture. The short term picture is all these speculators and pundits thinking gas prices and oil is a one way ticket up. Its hard to fight that sort of momentum, but it just sets the prices up for a nasty fall. The long the bubble grows, the bigger the fall. I wonder how long the momentum goes on though. It took a lot of money to move the price up $4 in a day like it did today and all that early rush of money got hammered as the prices retreated just as I figured they would. Maybe a little noise later this week as reports come back on oil rig damage. Bottom line is though this potential loss of 1 million barrels at worst is such a drop in the bucket in the bigger perspective of about 84 million barrels a day sold on the world markets, it certainly wasn't worth a 7% jump in prices and the market came to its senses. Just think if the oil rigs are worst case and are out two weeks, all W has to do is order a release of about 2% of the US oil reserves and the market sees zero effect on supply. Further even though supplies are tighter than usual, there is still a theoretical 1-3 million barrel cushion out there. If nothing happens on a given day, there is more oil pumped than needed. If you get two calm weeks, it offsets two bad Katrina weeks. This reason is just not being displayed in the panicky markets right now.
I say this because there are two strands here, the short and long term picture. The short term picture is all these speculators and pundits thinking gas prices and oil is a one way ticket up. Its hard to fight that sort of momentum, but it just sets the prices up for a nasty fall. The long the bubble grows, the bigger the fall. I wonder how long the momentum goes on though. It took a lot of money to move the price up $4 in a day like it did today and all that early rush of money got hammered as the prices retreated just as I figured they would. Maybe a little noise later this week as reports come back on oil rig damage. Bottom line is though this potential loss of 1 million barrels at worst is such a drop in the bucket in the bigger perspective of about 84 million barrels a day sold on the world markets, it certainly wasn't worth a 7% jump in prices and the market came to its senses. Just think if the oil rigs are worst case and are out two weeks, all W has to do is order a release of about 2% of the US oil reserves and the market sees zero effect on supply. Further even though supplies are tighter than usual, there is still a theoretical 1-3 million barrel cushion out there. If nothing happens on a given day, there is more oil pumped than needed. If you get two calm weeks, it offsets two bad Katrina weeks. This reason is just not being displayed in the panicky markets right now.
Wildbill,
It is no secret we disagree on the long term oil and gas price (and our disagreement began a while ago). I am sure you noticed at first most agreed with you and beginning last week most seemed to see no limit to gas prices.
Furthermore, I have read reports that traders have recently spiked to a ridiculous 9 bulls to 1 bear for gasoline futures. For those not familiar with market terminology bull (betting price will go higher) and bear (betting price will go lower).
I am not a fan of shorting (betting price will fall) markets in clear uptrends, but I certainly would not make a short term bet with 90% of the action leaning one way. In fact, if oil and gas were not in such stong uptrends the past few years, I would aggresively bet against 9-1 in any market. Instead, I will ride out these "bumps".
May I be clear in saying that long term (at least next decade) I see much higher oil and gas prices.
Lo and behold this evening when I was going to a meeting, the radio talkinghead gave several "reasons" why he "thought" gas WOULD DEFINITELY reach $5 or more before Halloween.
Your earlier post in this thread has been placed into my hall of fame rx posts.
:smoker2:
It is no secret we disagree on the long term oil and gas price (and our disagreement began a while ago). I am sure you noticed at first most agreed with you and beginning last week most seemed to see no limit to gas prices.
Furthermore, I have read reports that traders have recently spiked to a ridiculous 9 bulls to 1 bear for gasoline futures. For those not familiar with market terminology bull (betting price will go higher) and bear (betting price will go lower).
I am not a fan of shorting (betting price will fall) markets in clear uptrends, but I certainly would not make a short term bet with 90% of the action leaning one way. In fact, if oil and gas were not in such stong uptrends the past few years, I would aggresively bet against 9-1 in any market. Instead, I will ride out these "bumps".
May I be clear in saying that long term (at least next decade) I see much higher oil and gas prices.
Lo and behold this evening when I was going to a meeting, the radio talkinghead gave several "reasons" why he "thought" gas WOULD DEFINITELY reach $5 or more before Halloween.
Your earlier post in this thread has been placed into my hall of fame rx posts.
:smoker2:
One might also take a look at the rest of the world where gasoline prices have been 3-5 dollars for many years and say...WOW the USA finally got caught up with the rest of the world on that market.
The population in the USA just keeps going up and that means more people, more cars, more gasoline used. Now many think there are lots of oil and gas reserves out there now, but not as much as you might think. This is what happens when the USA becomes dependent on foriegn oil. The REAL problem is where will it end, if it ever does. I myself can see gasoline and other oil related items getting to that 5.00 mark in the next decade with ease... IMHO
The population in the USA just keeps going up and that means more people, more cars, more gasoline used. Now many think there are lots of oil and gas reserves out there now, but not as much as you might think. This is what happens when the USA becomes dependent on foriegn oil. The REAL problem is where will it end, if it ever does. I myself can see gasoline and other oil related items getting to that 5.00 mark in the next decade with ease... IMHO
