personally these gas prices are killing us; it is currently $2.88 per gallon in our area. It's approx $20 a day just to go back and forth to work, not to mention the way all industries have hiked their prices to accomodate. My husband does construction and the prices of building materials has tripled and concrete went from $75 to $105 a cu yrd.
We all know that the war is not solely to blame so whats the deal???
Do you see the light at the end of the tunnel?????????
2007-07-18 06:28:37 · 9 answers · asked by tonyer71 2 in Business & Finance ➔ Other - Business & Finance
Consider the following if no one could make any more pies for ever, and you had the only pies left on earth, and your supply of pies are being sold rather quickly--everone wants your pies, you will sell your remaining pies for what ever the market will bear. Until we find a new mass energy source, we will pay for every increasing prices. The war in the middle east currently has very limited affect on our prices. Why should someone invest millions in a new refinery when they material to refine is being depleted. Consider the fact this month China took our place as the number one user of oil in the world, that means a lot of oil is rapidly being depleted.
Look for $4.00 gas within the next two years. Higher if Iran gets control of Iraq oil fields.
2007-07-18 21:38:53 · answer #1 · answered by oldcorps1947 6 · 0⤊ 0⤋
Gas at $3 a gallon is actually the same "cost" as it was when it was $0.88 a gallon 35 years ago, when measured against other price increases and inflation of wages. It's just that we've been enjoying REALLY cheap gas for so long, we have no clue what realistic energy prices look like.
Part of the cost of gas is the price of oil, which we are now competing with emerging economies for (think China and India).
The other part of the cost is the fact that so few refineries exist in the United States that even if we COULD find an unlimited supply of oil, it wouldn't help. Market forces being what they are ( supply vs. demand ) there just isn't enough gas available to ease the pressure on prices.
Why aren't companies building more refineries? Well, for years it was so much cheaper to increase existing capacity than to fight the EPA and Environmental Groups over NEW refineries that most Oil Companies did that. They expanded the heck out of their refineries, until they could not legitimately make them any bigger.
Now they are delaying on building new refineries because of all the talk in Washington about MANDATING "flex-fuels" and "bio-fuels." If a company can't make back the cost of a refinery (ROI - what, 20 years to pay for?) because the government says "You can't sell more than 70% straight gasoline" and thus kills your ability to provide more gas, what is their incentive to build the refineries?
Short answer, DRIVE LESS. If you're spending $20 a day on your commute, by a SMALLER vehichle (you can afford the payments, even if they're $300 a month if you can double your gas mileage). Commute with a friend.
It is NOT every American Citizen's RIGHT to drive a gas-guzzling SUV regardless of cost or practicality!
2007-07-18 06:44:58 · answer #2 · answered by jbtascam 5 · 0⤊ 0⤋
I'd be very surprised if we ever again see gas prices below $2 a gallon. $2.50 maybe, but even that isn't real likely.
What are you driving, and how far is your commute, to use $20 in gas each day? That's about 7 gallons a day - if you get 20 mpg that would be almost 140 miles a day commute. Consider either finding a job closer to home, or getting a vehicle that isn't so thirsty.
2007-07-18 06:39:10 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
No we can't the time it takes from start to end is a minimum of ten years, if some thing would desire to have got here approximately it might desire to have got here approximately whilst Ronnie replaced into living interior the White living house. not now. Why have a great form of refineries been taken off line, why have a great form of wells been capped right here in this u . s . a ., if capability(oil) replaced into so significant? It replaced into not suitable to the OIL, Boys & ladies, it replaced into, and is suitable to the "earnings". You, (the OIL agencies), administration the provision, you administration the fee. You cap wells right here in this u . s . a ., you chop back the uncooked fabric, you advance the fee. You cut back the refinering capacity of that uncooked product, you advance the fee. This plan has been in effect via fact that Ronnie replaced into President. The PNAC knew then what might deliver this u . s . a . to this is knees, and that they have carried out their plan ok, and the lemmings have offered into the plan hook, line, and sinker.
2016-10-21 22:25:58 · answer #4 · answered by ? 4 · 0⤊ 0⤋
No...I don't think we'll ever see those prices again...
When I began driving in 1975, gas was around 50cents a gallon...$5 would get you a long way!
Since we have now gotten "used" to paying through the nose, and the "powers that be" know we'll do it, and not really change our driving habits, why SHOULD they bring it down to acceptable levels????? Supply and demand, my children...supply and demand....
2007-07-18 06:38:34 · answer #5 · answered by Toots 6 · 0⤊ 0⤋
gas prices have been lower than they should have been for too long, and we Americans got used to it.
The real reason for the increase in gas prices is that China is developing a middle class, Millions of people are buying cars and using gas so they have increased the overal demand.
If you think gas prices are high here, go to Europe.
2007-07-18 06:33:23 · answer #6 · answered by Anonymous · 3⤊ 0⤋
Under 2 dollars??? I can't remember the last time they were under $2. I'm thinking back when I graduated highschool in '91.
2007-07-18 06:36:56 · answer #7 · answered by Joker 4 · 0⤊ 1⤋
ARE YOU A BLOND ALSO
ARE YOU A BLOND ALSO??????????????
2007-07-18 06:34:23 · answer #8 · answered by bksooy 2 · 0⤊ 3⤋
no, thanks to OPEC.
2007-07-18 06:35:54 · answer #9 · answered by draco3838 2 · 0⤊ 1⤋