Gas Prices Could Rise to $5 Per Gallon

[JCL]

Back on $5 per gallon gasoline in the US....

Michael Graetz argues that it is absolutely necessary, and more. He is a professor at Columbia, and author of "The End of Energy - The Unmaking of America's Environment, Security, and Independence".

His opinion is that it isn't a foreign policy problem, or a supply problem, but rather a failure of domestic policy over the last 40 years.

Decades after the Arab oil embargo, we accept instability and even war in the Middle East as inevitable. We take it for granted that we will pay the costs in lives and treasure. And although we know that high gasoline prices change people's behavior, Congress refuses to impose taxes that would raise petroleum prices, even though it could devise a way to return all of the revenues from such taxes to the American people based on their household size or level of income. As a result, our growing oil consumption and our reliance on imports continue.

Recommended reading.

The high cost of oil - Los Angeles Times

[Quicksilver]

Apparently Obama agrees with him. He said so today during his news conference.

Originally Posted by JCL

Back on $5 per gallon gasoline in the US....

Michael Graetz argues that it is absolutely necessary, and more. He is a professor at Columbia, and author of "The End of Energy - The Unmaking of America's Environment, Security, and Independence".

His opinion is that it isn't a foreign policy problem, or a supply problem, but rather a failure of domestic policy over the last 40 years.



Recommended reading.

The high cost of oil - Los Angeles Times

[Quicksilver]

WOW. These are amazing gas prices. Watch the video.......

Rising gas prices hit Mississippi the hardest - Mar. 9, 2011

[Fraser]

Seems like a simple equation to me.

Affluent country (ie., the USA,) + cheap automotive fuel (historically the case in the US) = culture of wasting fuel (in car design, car purchasing patterns, and probably car use as well).

[amacman]

here is a simpler equation
asset bubbles
oil is priced in dollars
the dollar is no longer considered stable
the euro will take over as world currency

[Fraser]

Originally Posted by amacman

the euro will take over as world currency

In your dreams.

[JCL]

Another simple equation:

4% of the world's population
25% of the world's annual oil consumption
(from the article linked above)

Works fine for a few decades until the rest of the world decides they want their piece of the dream as well. And they have money now, so they can compete for the (limited) oil.

[JCL]

Not a hope that the euro becomes the world's currency IMO

[Fraser]

Originally Posted by JCL

Not a hope that the euro becomes the world's currency IMO

Yep again. Any fool can see it will be the Aussie dollar... or perhaps the Yuan?

[Fraser]

Originally Posted by JCL

Another simple equation:

4% of the world's population
25% of the world's annual oil consumption
(from the article linked above)

Works fine for a few decades until the rest of the world decides they want their piece of the dream as well. And they have money now, so they can compete for the (limited) oil.

Yep.