Oil

[kat8585]

I believe it is happening, slowly and incrememtally. We have to watch them like a hawk. Like with health care. A little at a time. The more they control us, the better libs like it.

[Smalcald]

Gas prices in the US are not mainly determined in the US; they are a product of the world oil market. So when we see increasing demand for oil and gas from countries that are growing much wealthier such as China, Brazil, India etc, we are going to see prices rise unless we see great increases in the supply of oil worldwide and right now that just is not looking like it will happen. All we can really control in the US for what we pay is taxes.

I think we need to get used to the fact that we can't control things as as other countries and regions become much wealthier because they have adopted the economic policies that we pushed, largely free market capitalism, they will have as much of an impact on the world or more of an impact than we do.

So we can do whatever we want in the US drill, not drill, use less whatever, the price of oil is not going to be largely determined by our actions, but the actions of billions of Chinese and Indians or Malaysians or whatever, who all want cars and the same lifestyle that we have, and they just might get it.

True, to a point. The problem that China and India face, aside from poor infrastructure and antiquated class systems, is the sheer number of people they have to provide for. 1.6 billion in China and 1.2 billion in India. Common sense will tell one that a lingering drought, famine, major disease outbreak or economic downturn will wreak much more havoc on countries that are staggering under the weight of their populations than on us. And those 'red hot' economies are just about due for a correction. It always happens.

But, for us, the point is to get to where we don't need energy from anyone else.

Right I agree. But think though, China's economy is growing at triple the rate of the US economy. Of course they are far behind us individually in many areas but with 1.2 billion people if only 25% of their people get cars that will have a HUGE impact on the demand for oil and the price of gas around the globe, the same goes for India. Obviously they are not nearly as well off as we are, but they are so large that small increases in their standard of living have huge impacts in worldwide markets.

My point was that there is no such thing as "US" oil. All oil is dumped into a world wide energy market which determines the prices. If a US company drills in the US, they are not going to sell that oil for less to people in the US just because they drilled it in Texas. They are going to sell it for what the market will bear, and that market is determined by world wide demand something out of our control.

The key is to have an economy that needs less oil.

For me though I am simply not that worried, the main thing I am worried about is some sort of overreaction by the government. If wind/solar/hydrogen is viable the market will produce them. I would like to see less regulation on things like nuclear energy for example. We could also lower taxes on gasoline across the board. But the market will send signals. I think this economy could handle $10 a gallon. Even now we have gone from 2.50-4.00 in a matter of only a couple of years and I still see many many people doing just fine driving their large trucks and SUV

[kat8585]

I think this economy could handle $10 a gallon. Even now we have gone from 2.50-4.00 in a matter of only a couple of years and I still see many many people doing just fine driving their large trucks and SUV

[Smalcald]

No I am not.

But we don't make a huge amount either.

I am not denying that people who can't afford it will have to pay more, but that is how the US economy works. People can't buy bread in Egypt; certainly we can get through high gas prices. There is at the end of the day nothing the government or anybody can do about the price of oil with the exception of using less.

The days of long commutes and big trucks and SUV's may be over for people who can't afford it. But we all choose to live where we live and we choose the car we drive and those that can afford to pay for high gas will continue to drive large cars and commute, those of us who can't will get smaller cars, downsize and move closer to work. Those are the choices; nobody should have any pie in the sky hope someone is going to fix this for us.

It may actually get better as I think oil is probably spiking right now on some speculation, but the fundamentals point to a long term future of 3.50-5.00 per gallon gas.

The fact is Europe and Canada have been paying 4-6 per gallon for years and years, they have not collapsed. We made it through the depression with 25% unemployement and true hunger in the US, we have unemployement at 5% today, I think we can get through this.

[irishcowboy]

I think this economy could handle $10 a gallon. Even now we have gone from 2.50-4.00 in a matter of only a couple of years and I still see many many people doing just fine driving their large trucks and SUV