Posted on 08/15/2005 6:06:24 AM PDT by BulletBobCo
CNN) -- Gas prices surged 20 cents over the past three weeks to an all-time high of $2.50 per gallon of self-serve regular, according to a national survey.
The price surge "does smash the all-time record high for the third time this year," Trilby Lundberg, publisher of the Lundberg Survey, said Sunday.
"Crude oil has caused this jump at the pump," she said of the survey, taken August 12 at about 7,000 gas stations in every state.
"And even at the current record-breaking pump prices, gasoline demand, while not galloping, is still growing."
Oil prices rose to record highs of $67 a barrel Friday, amid concerns that demand was straining the world's capacity to pump and refine crude oil. (Full story)
Lundberg noted that if the crude oil supply remains undisrupted, "the gasoline price surge itself will probably be ending soon, if it has not already."
"Our demand for gasoline is always highest for June, July and August," she said of the summer months, when families typically take vacations. She said gasoline demand is expected to taper off after August.
(SNIP)
Though a record in absolute terms, the price is still well shy of a record, if adjusted for inflation. The peak price would have been set during the Iranian revolution in March 1981, when a gallon of gas cost about $3 in today's dollars, Lundberg said.
(Excerpt) Read more at cnn.com ...
Not so much nefarious as stupid. Although those who consider themselves your betters are certainly celebrating the pain your "oversize" SUV is causing you. Thet believe large automobiles should be reserved for them.
It is the same thing that fueled the dot com bubble and is fueling the real estate bubble: People have built up a sizable amount of wealth, they are greedy for more, and they don't want to take the slow and steady approach for more. Right now, they are bidding up the price of oil and real estate, looking for the next get richer quicker scheme.
Anything demonstrating an upward tick attracts their attention, then the glom onto it and speculate it into the stratosphere. Eventually something spooks the herd (see the dotcom bubble) and they stampede off leaving disaster in their wake.
Better yet.....use that imminent domain thing and build a nuclear power plant on his property.
Move along, nothing to see here....adjust for inflation and stick your head back in the sand to protect your favorite politician.
"It'll take $90.00 a barrell in todays dollars."
Wait a week.
You are not alone in your thinking
http://money.cnn.com/2005/08/12/news/economy/oil_texas/
But with the spot price of gasoline just under $2.00, once you add in state and federal taxes, plus needed profit for refinerys, middlemen and stations, there isn't that much left over for gouging. Could there be some, sure, but if it were more than 5 or 10 cents I would be surprised. Not being an economist or in the oil industy myself I couldn't say.
There is no need for a short term solution. I tend to hope it stays high so our waste problem takes care of itself.
Amazing how so many people are under the impression that hybrids are plugged in, when they never are. Of course, a Prius has an amazing amount of room now as well (it is considered mid-size).
While the economy is becoming more efficient (less energy per $ GDP), oil usage is ridiculous in this country. Its not safe or healthy. But I don't approve of raising taxes on gas to ridiculous levels to encourage conservation, or of providing tax incentives which worsen the deficit for fuel efficient vehicles that are very limited in supply.
So what to do? My proposal would be to roll in, over a period of 8 years, a $2 federal surcharge per gallon of gas (hold on, before you panic). That gives people time to adjust the type of vehicles they own. That money would then go to a federal fund to be redistributed to income tax payers on their 1040 returns. For every person of voting age in a household on a tax return, you can claim a proportional credit on your return. Hypothetically, if the average driver goes 12,000 miles per year in a 25 mpg car, that would be $960 in surcharges. If you have 250 million drivers, that's $120 billion nationwide in surcharges, and every driver would be eligible to claim a $960 tax CREDIT on their return.
So how would that help? If you have a car that gets 30 mpg, you've only paid in $800 in surcharges, but you still get the $960 credit, so you get a reward for conserving. If you get 12.5 mpg in your H2, that's $1920 in surcharges, so you're paying a $960 premium on your gas and getting penalized for waste. So yes, it would be like a tax on those who waste fuel. But it would be one that everyone, regardless of income, could choose to avoid just by doing better than average. Buy a hybrid compact car getting 43 mpg and drive 10,000 miles per year, and you would end up $500 ahead every year, and the it would cost the government nothing, unlike current hybrid credits. Take public transit and save even more!
It seems that something like this would be a cost effective way of convincing people to shift habits, conserve oil, send less money to support corrupt middle east regimes, discourage urban sprawl (which would in turn save tons of money on road construction and maintenance), and improve air quality at the same time (fewer emissions).
Unfortunately, for the masses, "perception is reality", and GWB and the Republicans, as the party in power, are going to take a big hit on this if they haven't already.
There's probably very little GWB can do about it (although you'd think he could call in a few chips with a Middle East potentate or two).
My concern is that he's following in the footsteps of his dad by not even addressing what's going on.
Remember GHWB fumbling around in the supermarket checkout line? That, more than anything, may have cost him the '92 election
True...it would only be symbolic, but GWB needs to explain (as best he can) to the American people why this is all happening, and express his empathy and concern.
He's looking pretty aloof about it right now.
Wow, that was an eye-opener. If Texas oil men are talking about it, there's got to be something to it. Call it "creative manipulation" of the cost of oil. I'm sure Big Oil could may be engaged in a certain amount of gouging. Their obsene profits of late might be a good indicator.
The problem is it will affect everything you buy-especially food. THat will increase costs across the board.
TLR
You'll know it's really bad when someone siphons the gas out of your tank. Hasn't happened to me or anyone I know yet but I expect it will soon. Locking gas caps may be a hot seller before long.
That's changing, there are hybrid customizers who are converting hybrids to plug ins.
The auto manufacturer's wont be far behind.
some are claiming in access of 100 mpg.
http://www.calcars.org/vehicles.html
My son quit his job last week because of the commute and gas prices. He can't be the only one.
Not if the government stimulated demand by removing restrictions to free enterprise. How about ANWR drilling or lowering the gas tax? There are plenty of things they could be doing and aren't.
The oil boys have always played with the public like a cat with a half dead mouse or bird.
They love it more than sex.
In their mind
"Stupid is as stupid does"
, and they gouge away when in the mood until it backs up at the refinery.
That's exactly what's happening with this latest gouge fest.
Tankers of crude are parked at refinery docks waiting for room to be made in refinery crude tanks to offload.
Happens every time they over gouge.
That's how they know when to stop (they already need glasses).
Never heard of people doing that before - thanks for the link. I think that's a great idea (optional plug-in) if we provide non-oil based power to recharge them (enough building oil-fired power plants).
There's no reason we can't be much, much more energy independent - there just needs to be a general incentive to avoid oil waste... Which is hard to acheive when oil is cheap... but waste becomes painful when oil gets expensive.....
I agree with you completely. Most people have no idea why all of this is happening. They need to be told.
All anyone knows is that gas prices have risen a lot, not a little, but a lot and there has been NO explanation from Washington.
Some people at Free Republic may sneer at the sheeple who dare to have SUVs and long commutes. Maybe everyone really should ride a bike. But there better be a real good reason that is made clear to people, and that is the President's job. He is supposed to lead.
Yesterday my father (not a political man, just a regular working man) went to the gas station and there was a long, long line. This is in Pennsylvania. He said it was a line just like he remembered from the 70s. He was astonished and upset. He ended up going somewhere else and paying nearly 20 cents more ($2.93 a gallon), and only filling up the car a third. Can't afford a full tank at those prices.
It's bad when people start thinking it is the 70s all over again. Many people, right or wrong, already believe Bush is somehow in league with the Saudis and big oil. It's one of those urban legends but a whole lot of people believe it. He needs to show some leadership.
Because soon the Democrats will take advantage and they'll be the ones framing the situation.
" I'm surprised it hasn't slowed things until now."
Actualy i suspect it has, I think it'll be onthe MSM around the end of november when we start seeing Q3 and the numbers from projections on Q4 of the year. I think we'll see that Grenspans rosey picture isn't so rosey.
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