How to reach $4 a gallon
With gas prices to remain steady around $3 a gallon, the media's been having a field day, predicting that $4 may be reached by year's end. Apparently, though, it'll take a lot of factors to jack up prices to such a level. States analyst Mark Routt of the Energy Security Analysis, Inc., "One of two things would have to happen for prices to increase 50 cents to a dollar. Either there would have to be a massive increase in demand globally, which is unlikely, or a massive drop in supply, which would push the price of crude up."
Factors that could affect prices include refinery problems, pipeline issues, or another hurricane. Currently, crude oil and gas prices are actually dropping as inventories build, cease-fire in the Middle East between Hezballah and Israel; and BP continues to pump fuel in Alaska.
At $4 a gallon, would most Americans cut back in their driving habits? Most analysts and consumers interviewed agree that the price will have little impact in their driving habits, stating the gasoline-powered car is too much of a necessity in their lives.
[Source: Detroit News]
Reader Comments (Page 1 of 1)
finbred 12:59PM (8/21/2006)
Here in Finland a gallon sets you back USD 6,70 or more, but it hasn't affected sales, so it probably won't in the U.S. either...
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Howard Lee Harkness 1:54PM (8/21/2006)
Given the rate at which overall Chinese energy demand is increasing, I don't think $5/gal gasoline in the US is far off. That is a 'massive' increase, and China has been active in political manuevering for some time for the primary purpose of securing steady supplies of oil. When (not if) those supplies turn out to be inadequate, they may take more drastic action.
I hope that such action includes vigorous pursuit of alternative fuels, and not military conquest. An encouraging sign is that they are building nuclear electric generation capacity faster than any other country.
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John Rupp 9:52AM (8/23/2006)
Listen up!
From womb to tomb, is where you mostly find
gasoline priced 5-7 dollars a gallon. If the
government provides free care during your life,
gasoline is one source of revenue to pay for it.
Reply