Can anyone tell me why gas is so expensive?
Apr 23rd 2008, 4:37 pm
#46
@matthewb76
Joined: Jul 2003
Location: Missouri
Posts: 21,886
Re: Can anyone tell me why gas is so expensive?
I bet it comes down a lot in and around September........
Apr 23rd 2008, 4:38 pm
#47
Peace onion
Joined: Jul 2006
Location: Denver
Posts: 5,686
Re: Can anyone tell me why gas is so expensive?
You might blame the short-term increase on speculators. The common media response is to blame supply shortfalls occurring at the moment, but I think that's a bit facile. Global demand for oil during 2007 was actually 1.4% lower than it was during 2005, when oil hit $60/bbl.
In my opinion, the price of oil would be $60-70/bbl if the war would be ended. I am going to guess that about $20 of it is due to the weak dollar (which is a byproduct of the budget deficit, which leads back to the Iraq war), and that anything above that is due to speculation (which is also symptomatic of the Iraq war.) If we could begin the withdrawal process, I would imagine that gas would end up back in the $2-2.50 range within several months.
In my opinion, the price of oil would be $60-70/bbl if the war would be ended. I am going to guess that about $20 of it is due to the weak dollar (which is a byproduct of the budget deficit, which leads back to the Iraq war), and that anything above that is due to speculation (which is also symptomatic of the Iraq war.) If we could begin the withdrawal process, I would imagine that gas would end up back in the $2-2.50 range within several months.
My 2006 TDI with 24,000 miles is worth $3,000 more than I paid for it...
How's that for vehicle depreciation? Dogs and cats, living together...
Apr 23rd 2008, 4:39 pm
#48
gurt mint nit?
Joined: Nov 2007
Location: In my shed
Posts: 2,776
Re: Can anyone tell me why gas is so expensive?
On NPR yesterday they mentioned the new gas mileage standards over the next few years. They seemed very low even tho it was claimed that more and more hybrids can be expected to roll off the Detroit production lines.
Here's a wild thought.
Around 7 to 8am every weekday, the roads in suburban America are flooded with big, yellow schoolbuses.
Then they sit idle all day until the mid afternoon.
It is possible for there to be a mass transit system on a large scale here. Were it feasible to hop on a bus and nap on the way to work or read a book, that would be much more preferable to fighting traffic.
Here's a wild thought.
Around 7 to 8am every weekday, the roads in suburban America are flooded with big, yellow schoolbuses.
Then they sit idle all day until the mid afternoon.
It is possible for there to be a mass transit system on a large scale here. Were it feasible to hop on a bus and nap on the way to work or read a book, that would be much more preferable to fighting traffic.
Apr 23rd 2008, 4:41 pm
#49
I approved this message
Joined: Dec 2004
Location: Chicago
Posts: 2,425
Re: Can anyone tell me why gas is so expensive?
As far as I can tell, this spring from a number of different sources (in decending order of importance):
1. Out of control oil trading speculation
2. A weak dollar
3. Geopolitical turmoil (Nigeria, Venezuela, Iran etc)
4. Increased demand in China and India
5. Refinery bottlenecks in the US
1. Out of control oil trading speculation
2. A weak dollar
3. Geopolitical turmoil (Nigeria, Venezuela, Iran etc)
4. Increased demand in China and India
5. Refinery bottlenecks in the US
Apr 23rd 2008, 4:46 pm
#50
Peace onion
Joined: Jul 2006
Location: Denver
Posts: 5,686
Re: Can anyone tell me why gas is so expensive?
On NPR yesterday they mentioned the new gas mileage standards over the next few years. They seemed very low even tho it was claimed that more and more hybrids can be expected to roll off the Detroit production lines.
Here's a wild thought.
Around 7 to 8am every weekday, the roads in suburban America are flooded with big, yellow schoolbuses.
Then they sit idle all day until the mid afternoon.
It is possible for there to be a mass transit system on a large scale here. Were it feasible to hop on a bus and nap on the way to work or read a book, that would be much more preferable to fighting traffic.
Here's a wild thought.
Around 7 to 8am every weekday, the roads in suburban America are flooded with big, yellow schoolbuses.
Then they sit idle all day until the mid afternoon.
It is possible for there to be a mass transit system on a large scale here. Were it feasible to hop on a bus and nap on the way to work or read a book, that would be much more preferable to fighting traffic.
Apr 23rd 2008, 4:50 pm
#51
Bloody Yank
Joined: Oct 2005
Location: USA! USA!
Posts: 4,186
Re: Can anyone tell me why gas is so expensive?
The US stock price is down (the dollar is weak) in part because of the budget deficit. The war is expensive, we simply can't afford it.
The markets also view the US' involvement as a bad thing, because it bogs the US down into a untenable situation. The US' capability as a superpower is severely compromised by the war, because it could not respond effectively to a new crisis if one were to pop up somewhere. The markets exhibit their displeasure by punishing the dollar further.
Meanwhile, speculators trade on this instability. Like the dot-com bubble, money chasing stupid deals results in irrationally high prices for a temporary period. They eventually correct, but prices go up dramatically before the bottom falls out.
Ending the war would be the wake up needed to tell the speculators that the party is over, at which point they will jump like rats from a ship as they try to get out before the market falls out.
All the naysayers were panicking about withdrawing from Vietnam, too. (Domino Theory and all that.) As it turns out, it was the smartest thing that the US could have done. It allowed the US to reduce its costs, eliminate the internal strife created by the war, and move toward economic recovery. Some of the losses were permanent (such as the end of Bretton Woods and dollar pegging), but for the most part, the US came back from it.
The economic recovery during the eighties would not have been possible if the Vietnam monkey remained on our backs. The same thing applies to us today vis-a-vis Iraq.
If we don't withdraw, the US dollar may be permanently devalued, which means the end of US dominance will be coming sooner than later. Ending the war will hurt, but it will hurt less than it would to continue slogging away at it, only to lose it later.
Apr 23rd 2008, 5:13 pm
#52
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Joined: Jan 2006
Location: Dubuque, Iowa, USA
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Re: Can anyone tell me why gas is so expensive?
Apr 23rd 2008, 5:19 pm
#53
Unmitigated Gall
Joined: Dec 2006
Location: it's still too dark to tell
Posts: 16,162
Apr 23rd 2008, 5:42 pm
#54
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Joined: Jan 2006
Location: Dubuque, Iowa, USA
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Re: Can anyone tell me why gas is so expensive?
Never in a Million Years!
A few years ago, the State of Illinois made Coach Drivers who take Illinois Students on Field Trips obtain Illinois School Bus Driver Licences. Shortly after passing the test, the requirement was removed for out of state drivers, such as myself. I failed to renew my permit.
The Company I drive for operates School Buses, and our Dispatcher was rubbing his hands with glee at the thought of all of these extra drivers. We all collectively told him where he could stick his "Yellow Yamahas."
As for me, I'm leaving tonight at midnight, for a 5 day trip to DC, and then there will be a few short trips here & there, before I leave on a 46 day tour, operating out of Denver, CO. I will be doing 3 back to back, 14 day tours for SAGA Holidays (from the UK), taking Brits on Tours through all of the National Parks including Mt Rusmore, Yellowstone, Bryce Canyon, Zion, Grand Canyon, Navajo National Monument and Gunnison National Park.
Hey......it's a tough life, but, someone has to do it!
I dread to think of what my fuel bill will be for the Coach.
Jim.
Apr 23rd 2008, 6:13 pm
#55
Unmitigated Gall
Joined: Dec 2006
Location: it's still too dark to tell
Posts: 16,162
Re: Can anyone tell me why gas is so expensive?
Never in a Million Years!
A few years ago, the State of Illinois made Coach Drivers who take Illinois Students on Field Trips obtain Illinois School Bus Driver Licences. Shortly after passing the test, the requirement was removed for out of state drivers, such as myself. I failed to renew my permit.
The Company I drive for operates School Buses, and our Dispatcher was rubbing his hands with glee at the thought of all of these extra drivers. We all collectively told him where he could stick his "Yellow Yamahas."
As for me, I'm leaving tonight at midnight, for a 5 day trip to DC, and then there will be a few short trips here & there, before I leave on a 46 day tour, operating out of Denver, CO. I will be doing 3 back to back, 14 day tours for SAGA Holidays (from the UK), taking Brits on Tours through all of the National Parks including Mt Rusmore, Yellowstone, Bryce Canyon, Zion, Grand Canyon, Navajo National Monument and Gunnison National Park.
Hey......it's a tough life, but, someone has to do it!
I dread to think of what my fuel bill will be for the Coach.
Jim.
A few years ago, the State of Illinois made Coach Drivers who take Illinois Students on Field Trips obtain Illinois School Bus Driver Licences. Shortly after passing the test, the requirement was removed for out of state drivers, such as myself. I failed to renew my permit.
The Company I drive for operates School Buses, and our Dispatcher was rubbing his hands with glee at the thought of all of these extra drivers. We all collectively told him where he could stick his "Yellow Yamahas."
As for me, I'm leaving tonight at midnight, for a 5 day trip to DC, and then there will be a few short trips here & there, before I leave on a 46 day tour, operating out of Denver, CO. I will be doing 3 back to back, 14 day tours for SAGA Holidays (from the UK), taking Brits on Tours through all of the National Parks including Mt Rusmore, Yellowstone, Bryce Canyon, Zion, Grand Canyon, Navajo National Monument and Gunnison National Park.
Hey......it's a tough life, but, someone has to do it!
I dread to think of what my fuel bill will be for the Coach.
Jim.
I'm wondering how much that 14 day trip costs!
Are the Brit tourists suprised to find the driver is a Brit as well?
Apr 23rd 2008, 6:17 pm
#56
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Thread Starter
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Apr 23rd 2008, 6:31 pm
#57
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Joined: Jan 2006
Location: Dubuque, Iowa, USA
Posts: 3,770
Re: Can anyone tell me why gas is so expensive?
$3,600 each.
......and the Brits do tip well. There are guidelines that these tour companies use, which are normally followed to the letter by the Brits. These are not your usual "Florida-Bound" Brits. They are usually experienced travellers to the USA and know what to do.
I've taken Brits on Coach Tours of the USA & Canada before, and have always had a good time with them.
Jim.
Apr 23rd 2008, 6:35 pm
#59
Account Closed
Joined: Jul 2005
Posts: 15,019
Re: Can anyone tell me why gas is so expensive?
$3,600 each.
......and the Brits do tip well. There are guidelines that these tour companies use, which are normally followed to the letter by the Brits. These are not your usual "Florida-Bound" Brits. They are usually experienced travellers to the USA and know what to do.
I've taken Brits on Coach Tours of the USA & Canada before, and have always had a good time with them.
Jim.
......and the Brits do tip well. There are guidelines that these tour companies use, which are normally followed to the letter by the Brits. These are not your usual "Florida-Bound" Brits. They are usually experienced travellers to the USA and know what to do.
I've taken Brits on Coach Tours of the USA & Canada before, and have always had a good time with them.
Jim.
good to hear they tip you well, sounds like you do a good job for them...safe travels
Apr 23rd 2008, 8:24 pm
#60
Militant Ginger
Joined: Feb 2007
Location: Wrong Side of the Hudson River
Posts: 2,311
Re: Can anyone tell me why gas is so expensive?
This seems to have been missed, but is a very insightful comment. It's prohibitively expensive and difficult to open a new refinary, so I don't think anybody has since the 1970s.
