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Automotive News & Views How does gas at $4 and higher impact you?
2183 messages, Last post on Nov 21, 2009 at 5:13 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: kdhspyder (Sep 23, 2008 10:17 am) That's really unlikely because as you just saw high gas prices cause overall higher prices, which causes financial problems for millions, and then this causes financial chaos, and stops growth, which in turn moderates oil and gas prices. Unless wages were to inflate with the gas price there is no way gas/oil prices can rise faster. There is a limit to how much people can pay for oil and gas.
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Replying to: larsb (Sep 23, 2008 10:19 am) I agree that should be the attitude, but the attitude is that every project no matter how small goes through XXX environmental studies and challenges and takes years. And because this process is so daunting few people and businesses will invest in such a venture. So if you think the president and Congress should just say dang-the-process (they can change it), and just "Do it" then I'll gladly sign your petition. But this will involve cutting some trees, digging trenches for hundreds of miles, killing birds with turbines ... I'm sure you will hear of environmentalists chaining themselves to the trees and such, and they'll have to be arrested and jailed. Actually if you want a society where things can done quickly, you want a dictatorship, or a hive mentality; not a democracy. No dissension or discussion allowed, to delay projects. |
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Replying to: kernick (Sep 23, 2008 10:21 am) While we are the largest consumers we are nowhere near the fastest growing consumers. The fastest growth in consumption is all in Asia. Yes we may save millions of bbls annually by switching to alternate sources or just by cutting back. That won't stop the inexorable increase in the price of fuel in the entire world. This is in fact one single market. Our usage is a large but shrinking part of the overall view. Or... you can just plan that prices will fall...and hope. I prefer to plan for the worst and benefit when it doesn't occur. Wanna bet against $4.50 - $5.00 gas next spring?
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Replying to: kdhspyder (Sep 23, 2008 10:17 am) In the short term I expect it to plateau for a while. Time to call the gas company for a credit limit increase. 
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Replying to: kdhspyder (Sep 23, 2008 10:34 am) The ability to buy more oil and gasoline is determined by personal income. Despite growth of the Asian economies and growth of a middle-class, you are missing the fact that the developing world still does not have the individual purchasing power of the typical person in the U.S. The typical upper-middle income person in China may make $10K/year. If they now spend $1,500/year now on oil and gasoline (15% of income) whereas in the U.S. say $40K income - this is 3.75%. Now if gasoline goes up 10% each year ... do the math ... the person in China could not devote 25%, 35% ... of his pay just to gasoline. So the Chinese demand will wither with increasing cost very quickly. And the Chinese government or any other government can not subsidize high volumes. The average Euro. or U.S. citizen certainly is les affected by oil/gasoline increases than the people of the poorer nations of the world. |
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Replying to: kernick (Sep 23, 2008 1:07 pm) The oil demand in China will go nowhere if not UP.
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Replying to: larsb (Sep 23, 2008 10:19 am) I do agree with you. I think that the money will be the least problem with building power lines, gas lines, wind farms and solar arrays. It will be environmentalist blocking right of ways, NIMBYS blocking wind and solar, and greenies blocking progress of any kind. I cannot list all the obstructors to a power line that is needed to get from the solar arrays that are planned to the people that need the electricity. Many are the same people screaming for alternative energy and EVs. |
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Replying to: larsb (Sep 23, 2008 1:38 pm) Notice how quickly China and India dropped their subsidies on gas when oil shot to $140 per barrel. When our economy started to tank the World markets followed. Even Russia with its surplus of oil went into free fall. I have to agree with Kernick The World market will only support a certain level of oil pricing. Notice how a few speculators tried to get oil going up yesterday? Today it dropped back down $13. It will go back below $100. How far is hard to tell. |
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Replying to: kernick (Sep 23, 2008 1:07 pm) In the US there are 305 million people.. excluding the very young, the very old, the infirm and the prisoners ( !!!! ) there are about 265 million potential drivers. In the US there are about 265 million vehicles on the road. One vehicle for One driver here. We are a 'mature' market. In China there are 1.5 Billion people. Using about the same percentages there are potentially 1.3 Billion drivers. However relatively it has far fewer vehicles on the road at present. In fact there is only 1 vehicle for every 7 potential drivers. In India there are about 1.0 Billion people but they are much much farther behind with only about 1 vehicle for every 17 potential drivers. In both places the governments subsidize(d) the price of fuel to make it more affordable to the growing middle class. In both places with a premium on land space it is not the home or individual dwelling that's a status symbol of the newly affluent....it's a vehicle. The growth in demand and the increase in fuel usage may be in vehicles like the Tata Nano but the sheer number of drivers in these two countries will draw more and more resources there. Then there's Indonesia.....
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