$7 gallon gasoline, 10 million fewer cars by 2010

[2952-0-0]

http://www.theglobeandmail.com/servlet/story/RTGAM.20080626.wrubin0626/BNStory/energy/home

It's the beginning of a wild ride, folks.

[Bandit3 the Worker]

We're at the point where the government needs to nationalize the oil industry. I think we probably passed that point a few years ago.

[Albus Dumbledore]

Yeah because Nationalized Oil Companies work so well for Mexico and Saudi.

[dead0man]

Where are these 10 million cars going to go?  And is that a net loss?  I'm guessing $7 gas will bring a LOT of new cars into existence.  You probably will be able to get a great deal on giant SUV's, hell, you can already.

[○∙◄☻¥tπ[╪AV┼cVê└]

Too bad that the Republicans have done nothing for alternative energy research and public transportation. Thanks for screwing us all over, scumbags.

[dead0man]

Too bad that the Republicans have done nothing for alternative energy research and public transportation. Thanks for screwing us all over, scumbags.

If only that were true!  Republicans were big in screwing us over with the Ethanol subsidies right?  If past results are an indicator of future results, the govt should avoid trying to "help".

[War on Want]

Yeah because Nationalized Oil Companies work so well for Mexico and Saudi.

Actually Mexicans love their nationalized oil and when I went there last year when gas prices were at 3 dollars a gallon, prices there were almost at 2 dollars.

[dead0man]

Yeah because Nationalized Oil Companies work so well for Mexico and Saudi.

Actually Mexicans love their nationalized oil and when I went there last year when gas prices were at 3 dollars a gallon, prices there were almost at 2 dollars.

Were other things 30% cheaper there or just gas?

[War on Want]

Yeah because Nationalized Oil Companies work so well for Mexico and Saudi.

Actually Mexicans love their nationalized oil and when I went there last year when gas prices were at 3 dollars a gallon, prices there were almost at 2 dollars.

Were other things 30% cheaper there or just gas?

I know what you are trying to play at here but Mexico's economy is growing at a very large rate and while I understand their oil industry isn't perfect it works just as well as ours.

[dead0man]

My subtle point wasn't that clever.  I was just pointing out that everything from land to Doritos to beer is cheaper, often quite a bit cheaper, than the US.  Saying, 'look, gas is cheaper there so their oil industry must be better', isn't a conclusion I'd jump to.

[MODU]

Too bad that the Republicans have done nothing for alternative energy research and public transportation. Thanks for screwing us all over, scumbags.

If only that were true!  Republicans were big in screwing us over with the Ethanol subsidies right? 

And billions in hydrogen research, just to play catch-up with Germany and Japan.

[dead0man]

Right.  And both are dead end technologies.  The future is electricity.

[Flying Dog]

....and fires will ravage the earth....

[??????????]

http://www.theglobeandmail.com/servlet/story/RTGAM.20080626.wrubin0626/BNStory/energy/home

It's the beginning of a wild ride, folks.

This economy would collapse if fuel reached 5$ a gallon. I'd hate to see what happens if it ever hit 7$, especially for diesel which is the real life blood of the US.

[Padfoot]

I think the more dramatic change will occur under the radar (pardon the pun) in the form of decreased air travel and increased travel by passenger rail.  Amtrak is booming right now and I believe they recently got a desperately needed increase in funding from the government that should allow them to make some major improvements.

I really hope that increased gas prices also spur more cities to expand their public transit options.

[jesmo]

Do not worry about it guys, things always have their ways of working out...

[Albus Dumbledore]

Oh sure they do... it's just that by the time it's all finished settling out the US is a power confined mostly to north america, most cars are in scrap heaps and passenger rail is a major growth industry. Also, all the suburbs are slums.

[DownWithTheLeft]

Yeah because Nationalized Oil Companies work so well for Mexico and Saudi.

Actually Mexicans love their nationalized oil and when I went there last year when gas prices were at 3 dollars a gallon, prices there were almost at 2 dollars.

Were other things 30% cheaper there or just gas?

I know what you are trying to play at here but Mexico's economy is growing at a very large rate and while I understand their oil industry isn't perfect it works just as well as ours.

Mexico's great, that's why no one ever wants to leave and people are just flocking there by the milllions.  Oh wait, or is it the other way around?

[memphis]

Pretty unlikely. Oil's in the midst of a speculative bubble much like real estate was a few years ago and the techs were a few years before that. Look at a graph of the price of oil of over time. This commodity crashes hard. Hopefully, we can shift to an alternative fuel and kill this mess.

[2952-0-0]

This economy would collapse if fuel reached 5$ a gallon. I'd hate to see what happens if it ever hit 7$, especially for diesel which is the real life blood of the US.

Good thing you're going to find out, right?

Pretty unlikely. Oil's in the midst of a speculative bubble much like real estate was a few years ago and the techs were a few years before that. Look at a graph of the price of oil of over time. This commodity crashes hard. Hopefully, we can shift to an alternative fuel and kill this mess.

What people don't get is this. We *may* be sitting on a short-term speculative bubble that leaves a big mess in the industry for now, but the *long* term trend will be up. The tech sector crashed because of massive glut of capacity, and so did the Japanese economy in 1990. There's no massive glut of capacity in the oil industry.

If we started a crash course to get *off* oil in 1975 we'd be fine right now (except for the Saudis who would be living on food stamps). We won't instantly switch (and anyone who thinks so is delusional, since the lead time will take decades) so there will be a drop of living standards for everyone until alternative fuels becomes cheap and plentiful.

[MODU]

Oh sure they do... it's just that by the time it's all finished settling out the US is a power confined mostly to north america, most cars are in scrap heaps and passenger rail is a major growth industry. Also, all the suburbs are slums.

The new American Industry would be providing conversion kits for existing vehicles to make them economical.  Why Detroit hasn't had a start-up in this industry yet, I have no idea.

[Albus Dumbledore]

Oh sure they do... it's just that by the time it's all finished settling out the US is a power confined mostly to north america, most cars are in scrap heaps and passenger rail is a major growth industry. Also, all the suburbs are slums.

The new American Industry would be providing conversion kits for existing vehicles to make them economical.  Why Detroit hasn't had a start-up in this industry yet, I have no idea.

Uh huh. You expect Detroit to not continue it's pattern of suicide?

[??????????]

This economy would collapse if fuel reached 5$ a gallon. I'd hate to see what happens if it ever hit 7$, especially for diesel which is the real life blood of the US.

Good thing you're going to find out, right?

No, I don't pay for my diesel.

[MODU]

Oh sure they do... it's just that by the time it's all finished settling out the US is a power confined mostly to north america, most cars are in scrap heaps and passenger rail is a major growth industry. Also, all the suburbs are slums.

The new American Industry would be providing conversion kits for existing vehicles to make them economical.  Why Detroit hasn't had a start-up in this industry yet, I have no idea.

Uh huh. You expect Detroit to not continue it's pattern of suicide?

Call it my "audacity of hope."  hahaha

[Wakie]

The infrastructure of the US is heavily dependent on automobiles which can operate on reasonably priced gasoline.

It is funny ... for the past 30 years high fuel prices have been the 2000 lb elephant in the room.  Democrats talk about alternative energy, but there's no reliable sources.  Republicans talk about increasing the oil supply (but frankly if you increase the supply we'll find more ways to consume it).

The one thing I can't believe NO ONE seems to talk about (and this is the easiest solution and a sure-fire one) is improving our national public transit systems.