There are some signs that demand is starting to slacken, both here and abroad.
Hurricane threats in the Gulf (of Mexico) have eased (the late season threat is typically in the Atlantic).
Refinery capacity is the biggest problem (IMHO). We just don't have enough refineries, and no one wants one in their backyard -yet. We'll see what a year's worth of $2.00+ gasoline does to change people's minds.
ANWR needs to happen, along with Continental shelf exploration. Is there any political will from the Republicans? We'll see.
Market speculation is rampant now, but will likely calm along with demand in the fall.
As for industrial demand, wind power and solar energy are expensive and inefficient, and coal is not all that clean. Nuclear power is now getting a second look from people who used to dismiss it out of hand, but wince every time they fill up their SUV's. Hell, if the French can do it, why not us?
At the rate it has been going here in Central Texas, it will reach 3.00 in a month or so. Every three days like clockwork it spikes .06-.12. Just this morning it was 2.19-2.25. Now it is 2.29-2.37. I suspect it will be around $2.50 by the end of the week.
In NYC, I doubt it. But LA, with its psychotic mess of both state and EPA regulations requiring a different formulation of gasoline to be sold practically every other day ... yeah, I can see them hitting $3 easily. All it would take is some minor event in the Middle East happening about the same time some American refinery serving SoCal was offline for a couple of days.
It's already about $2.70/gl around my neck of the woods.
Shucks, I covered this some time ago:
Sticker Shock-$3 a gallon gas? Some links
various FR links | 03-17-04 | The Heavy Equipment Guy
http://www.freerepublic.com/focus/f-news/1099933/posts
I am sorry I am not much of a gambler. Does this mean if I bet $1 I get $30 back if it hits 3 bucks a gallon? Or the other way around I bet $30 and get $1 back?
Gasoline is already over $3 a gallon, if you go by imperial gallons, not the quart short American gallon.
An imperial gallon costs $3.91 (USD) in Canada ($4.75 Canadian dollars)
A U.S. Gallon would cost $3.31 (USD) in Canada. That's because gasoline taxes are that much higher in Canucky land.
So, as you can see, things could be worse. $2.60 for a US gallon ($3.25 for an imperial gallon) isn't all that bad.
Economically, the USA is the cheapest place to do business as far as energy costs go.
In Europe, and the UK, gas could cost you $6 or more for an imperial gallon.
I just got my new monthly oil heating bill installment for the 2005 - 2006 season and it jumped from $158.00 per month to a whopping $300.00 per month. I can't wait until I can retire and move to a warmer climate.
I'd take that action, and use the winnings to fill my tank. :)
Places in San Francisco it already has topped $3.00. The average price is over $2.60 for regular.
I paid 2.98 a gallon for regular in Baker, California last month. The station down the road had it at 3.06 or some such for regular.
I could see it going higher than 3....how about we get the lawmakers to shave off some of those taxes....we could decrease the price by at least a buck.
$3 / gallon at the pump before Labor Day?
If the Dems get in in '08, they'll nationalize the oil companies.
The Republican Congress might just as well resign right now. If this mess continues much longer, the Democrats are likely to sweep the 2006 elections and retake control of Congress with veto-proof majorities.