Consumers can expect retail gas prices to rise to $4 a gallon soon but whether they stay there depends on the long-term damage to oil facilities from Hurricane Katrina, oil and gas analysts said Wednesday. "There's no question gas will hit $4 a gallon," Ben Brockwell, director of pricing at the Oil Price Information Service, said. "The question is how high will it go and how long will it last?"
The "how long will it last" is of course the trillion dollar question. If $4/gallon was the new pricepoint forever, then refiners and farmers could safely put in the investments to plant new crops for soy, and refiners could spend the billions for the refineries to turn soy into biodiesel and ethanol. Unfortunately, neither the farmers nor refiners want to spend a few billion dollars if gas prices drop to $1.50/gallon before the next harvest season. It takes years to put infrastructure in place.
This is where government is needed. There's just no way around it. Individuals don't want to take a risk of massive personal financial danger just "for the good of society" and hoping prices are still high in a few years. We already spend what, $1800 billion a year at the federal level? Spent a couple billion helping farming companies and refiners put infrastructure in place that can get us OUT of being reliant on imported oil for our fuel supplies. Biodiesel from algae doesn't even require farmable land, you could put those out in the middle of the Texas desert and they'll thrive.
Just yesterday, some yahoo in a pickup was determined to fly by me in his SUV. When he returns to the gas station, I wonder if he still thinks he "won".
Did you meet up with him at the next stop light? I usually do, and so far, none of them have returned my look when I try to look at them and "imply" to them with my expression that they just wasted some gas for no reason...
NEW YORK (CNN/Money) - Consumers can expect retail gas prices to rise to $4 a gallon soon but whether they stay there depends on the long-term damage to oil facilities from Hurricane Katrina, oil and gas analysts said Wednesday.
How expensive will gas need to be in order to get the average Joe to actually think about saving a little gas?
Are you ready to drive a hybrid now? 2.39/gal (too late, these prices are gone)
How about now? $2.99/gal (today)
Maybe now? $4.00/gal (soon)
The buzz around the office today is carpooling, consolidating grocery trips, and riding bikes all as a result of the 3.199 gas that has become the norm here in Omaha, Nebraska.
Im quite excited, I sent out an email to the entire office (40 people of which 4-5 live right on my route) about carpooling this spring and no one replied, I have a feeling that I may get some interest today.
...most likely a donkey, but if he had to drive a car, i bet it would be a hybrid.
I don't think price is an issue here. Gas could be $10 per gallon and we would still burn it at record levels. The damage and destruction to one of our richest oil fields can be directly attributed to global warming, which in turn, will produce more powerful and destructive storms to threaten other critical oil producing areas in the Gulf and areas around the globe. Lower emissions and new 0 emission energy alternatives are the answer as we have all read on this site. Conservation will definitely help with supply but will just prolong our global warming agony as third world nations burn more fossil fuels and create more greenhouse gases.