The price of a gallon of gasoline has now topped $4 per gallon nationally and it looks as if there is no relief in sight for weary motorists. As the price of crude on the open exchange continues to escalate, so does the price at the pump. These high prices are crippling consumers and businesses, and squelching our economy, which is already under pressure from higher food prices, job losses and sinking home values.
So where do we go from here? The answer certainly does not lie with the oil companies. Their stock holders are looking for a return on their investments. The answer does not seem to lay in Washington either as the usual business of politics steadily grinds out more of the same old crap that rolls out of Capitol Hill on a daily basis. Maybe, the energy consortiums can find a way to harvest this endless supply of stuff or the endless supply of wind that steadily blows from the Hill. Maybe a few wind turbines might help.
As I said in an earlier post, Our Current Energy Crisis, we need to start putting pressure on our current lawmakers to start clearing the way for energy production in OUR country. Instead of the domestic oil that is pumped out of our soil being put into the global supply, pass legislation that will keep the oil home to be used for our goods and needs. We, by the power of the voting booth, need to force Congress to adopt plans for energy independence.
What do you think?
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It appears that the oil profits will keep coming if the production does not increase, so I would guess $6 by the end of the year.
I don't think they are going to stop rising anytime soon. They, being the greed mongers, know we have no choice but to pay until we find other alternatives. The only thing that would really made an impact is a country wide strike against gas and driving. But, people need to get to work, they need to get food. We have all been trained to be on the run and now that we are they are making sure we pay for it.
I was surprised to see that the head of OPEC today said that there is no conceivable reason why the price of oil is rising so drastically.
Sean Allen
I don't know what is going to happen but I am worried about what is going to happen. We do need alternative fuel.
The entire oil crisis really doesn't make sense. I thought we had plenty of resources in this country.
I keep hearing that they will come down, however, I don't see it happenning. $5.00 before end of July, over $6.00 by end of year. And congress will still not have acted to alleviate the supply problems
Many people simply are not driving as much as they used to, since this insanity began. You'd think that the OPEC guys might decide to do something to drive the prices down, as the demand in our country is slowing down. People are not driving for fun and they're not driving so freely. Big trucks and SUVs are being parked in the driveway more and more. People are buying up small, fuel efficient cars. You can only push so hard before people either stop driving as much as they used to, or they buy Honda Civics. Less demand should result in lower prices.
We have our own resources, but this is political. We may see a decline before election, who knows......the traffic patterns seem to have changed some, it is usually a parking lot around rush hour and weekends is a disaster because of the Manhattan traffic. Friday night there was no traffic and no waiting time at the GWB, nor was there on Sunday. And the rush hour, either they are car pooling, taking mass transit, or are laid off.
Anyway, my birthday just happens to be tomorrow.....or it would be tomorrow if I still had birthdays, mine seems to be long gone never to return! Have a great day, I will be a year older!!!! Well, a day older..
Michael...great post...but how in the heck did you get colored fonts???
I've heard reports that gas will be $7.00 a gallon by the end of summer..YIKES!
what I hate is when the so-called-experts come out and say that oil will do this and in a days or so time the oild goes to that price and beyond
This makes no sense. OPEC said they wont increase production to keep up with demand. However they said it is not demand causing the rising prices its oil speculators manipulating the market. Regardless of what is driving it up, I should have opened a gas station when I had the chance.
Today was the most I paid for a tank of gas in my car...over $66 dollars.
There are two fundamental problems.
1. Total world demand is currently 86.5 million barrels a day. Total world production is currently 85 million barrels a day. Simple economics means the price HAS to go up.
2. We have a Congress that is the problem, not the solution. We haven't built a refinery in nearly 40 years (37 to be exact). We are not allowed to drill in the Gulf of Florida's coast even though China, India and Cuba are. We are not allowed to drill in ANWR even though there isn't a tree in 700 miles of the place. We are not allowed to build nuclear power plants - we need 800 of them to supply totally clean domestic power for the country. We are not allowed to use shale, even though we have three times as much of that as all the oil in Saudi Arabia. We are not allowed to use coal to oil technology.
FACE IT - 96% of our domestic transport is powered by oil. Currently we are borrowing Billions from china to give to Saudi Arabia.
Watch my blog for updates on JC Bell - he will save America.
Michael: I hear $6/gallon is not out of the question before the November elections. YIKES!!
Mike I agree with your comments...someone needs to save America!
Save us Someone!
Tom Davis
World Class Delaware Realtor
Well, we're in a helluva pickle and there isn't a soul in Washington that can or is interested in fixing it. Prices will rise... the prices we're paying now are not the result of an embargo or other artificial disruption... it's supply and demand. There are more players on the world scene clammering for refined products... it's just that simple.
We all know the way to break the foreign oil addiction... build refineries, drill for domestic oil, expand nuclear facilities and pursue alternative energy. The only thing being done, however is the dipshits on the Hill bitching to the oil company executives about prices and their salary packages.
STFU already and do something. That won't happen though. The liberal left and the bunny loving tree huggers will block all those measures which will ensure we're all paying $7/gallon. Aside from OPEC members, we're among the last places left where energy is this cheap. Don't expect it to stay that way.
$62 to top off my tank today... ouch. To the oil companies/Sultans reaping the benefits, now hear this... I like to be kissed before I have sex.
LMAO @ Susie... Amen!
Michael I just heard Jim Taylor of Taylor BioMass Energy speak. He is on the brink of bringing several production plants on line to produce energy (a natural gas substitute and electricity0 from garbage. It is an amazing process. He even foresees hydrogen fuel cells for cars within 5 years. check our Taylor from Montgomery NY for some exciting hope for our future. We need to find substitutes and use our own natural resources better. Good post.
This is what happens when you have week leadership in DC! Congress and the President are all to blame! Hey, Congress has prevented drilling, no new refineries, no new nuclear, no off shore drilling etc.
I saw a sticker on my gas pump the other day that 41.9 cents of the price is taxes. Reducing those taxes would certainly help, at least in the short term, in the long term they need to build more refineries and harvest more oil from non-traditional sources. Why is it that other countries are drilling for oil off our shores outside the 6 mile limit? Because there's oil out there!! And, the Alberta tar sands now look like a viable place to harvest oil.
Paddy, The first realistic response.
Everyone is gripping about the problem and looking for some else to solve it. You want lower gas prices, then each one of us must do something about it, stop looking at the other guy.
Alternative energy is what is needed, more oil and or production IS NOT GOING TO SOLVE THE PROBLEM. It simply will delay the inevitable. Oil is running out and the demand will continue to increase and thus the price.
The name calling and blaming the "bunny loving tree huggers" for our current oil shortage is simply partisan politics. Presenting initiatives to drill for oil in protected areas as the answer to our current energy problem is an unrealistic political diversion. Even if drilling were to start today it would be years before any relief was felt.
I watched a short thing on tv this morning. They are saying that speculation is what is driving the cost up. Now that it is being traded on the market like silver and gold.
Michael, we are trying to drill more in Alaska, but some group now is suing because of the effect on Polar Bears.
$125 to fill up my gas guzzling truck. I have always been baffled by the US attitude towrds selling our gas & oil to overseas, or capping it. It just doesn't make any kind of sense from a business, global, or economic standpoint. So who benefits from our current policies? I think it's way past time that American consumers and voters started to stand up for themselves, and raise a major rucus that the politicians can not ignore or sweep under the rug. How about an "Energy Reform Bill"? Anyone on board with that?
Alternative sources are definitely needed for the future.
To the anonymous person who said if we started to drill today it would be years before relief was felt.
1. If that was true, it's still worth doing otherwise in years the situation will be much worse.
2. You are actually wrong. Future production plays a huge role in today's pricing.
We need to drill in our own country. Now would be better than later.
Simon,
I left the anonymous comment, some glitch with the system.
"it's still worth doing otherwise in years the situation will be much worse."
You miss my point, it is time to stop DEPENDING on oil. These plans are nothing more than short term, short sighted band aids. They do not solve anything. Prices may go down for awhile, but the same thing will undoubtable occur again down the road.
I have to disagree with the "Oil is running out" comment. We have VAST proven energy deposits in this country. VAST. Bakken, for example, holds estimated reserves of 400 Billion barrels of oil. We are not out of oil... we're out of refining capacity.
We should be out of patience with the lame asses on the Hill but apparently not enough folks are unhappy with $5/gallon gas to tell the tree huggers to sit down and STFU.
Alternative energy is GREAT, but we are nowhere near being able to shift our oil based society away from it... nowhere close. So, the choice is to continue suffering as we are or do something about it while pushing for new technology. It doesn't have to be an either/or proposition.
Jesse,
The amount of oil in the Bakken is controversial. The 400 BBls is at this time a questionably high estimate. More importantly how much of that oil is recoverable. Estimates range from 3 - 50%.
You can disagree with "oil is running out", but the fact is it is a finite resource. Finding and exploiting more fossil fuels is not going to solve our current energy crisis.
Playing the blame game and pointing at "the tree huggers" as the reason for lower production in this country is silly. The oil companies buy oil from where it is cheapest, OPEC. It is simple economics, nothing more or less.
Currently there are many alternative energy sources that are and have been available. If the government would get behind these instead of say paying for a war, we may not be in such a bad economy.
James - actually it is no longer a finite source of energy. You should check out my assorted blogs on JC Bell. Not only can we produce it forever, but we can do it relatively cheaply and in an environmentally friendly way. More research my friend.
Simon, Actually it is finite. What JC Bell is producing would be considered a Bio-Fuel or an alternative energy source. I was speaking of fossil fuels. It would seem that his oil would require little or no change to infrastructure meaning it can have a, hopefully, measurable impact sooner rather than later.
James - it's REAL oil. You understand that right? Here in the United States it will provide two thirds of what we need - meaning the rest of our resource IN THE GROUND will last substantially longer. We also have coal to oil technology; we also have Shale Oil and if we start building the nuclear power plants we need to power our cities instead of using fossil fuels for it, then the supply is indeed infinite. Finally, you are right - that is all without changing our agrigultural or forrestry production.
With JC Bell and his invention oil is not finite anymore. Once he is up and running we do not have to hear from anymore liberals about the oil situation anymore. Now what will they try to scare us with?