Posted on 04/05/2011 8:06:37 AM PDT by Red Badger
As an investor with significant exposure to oil prices, I’m always worried about something like the financial panic of 2008 that might trigger a quick drop in the commodity. One thing I’m not overly worried about is the American public kicking its addiction to oil any time soon.
For years I’ve always gotten a big kick out of analysts on CNBC talking about how $2 then $3 and now $4 per gallon for gasoline would kill the demand for the product in the United States.
[snip]
And that is a bit strange, considering that Canadians pay quite a bit more than Americans at the fuel pump. Last week AAA’s fuel gauge report showed that the average price per gallon in the United States was $3.59. In Canada we are at $5 per gallon in many parts of the country.
You would think that $5 per gallon would change your fuel consumption habits. It hasn’t. And $4 per gallon or even $5 per gallon in the United States isn’t going to change much, either. Sure, if the price of gasoline jumps from $3.50 to $5 in the span of six months, there will be some short-term reaction. But over the long run, Americans aren’t going to be willing to significantly stray from the personal freedom a car allows.
And if you think Canadians have it bad, consider some of these prices per gallon where citizens still drive cars on a regular basis (from AAA):
Turkey: $9.63 per gallon Norway: $9.27 per gallon Greece: $8.50 per gallon Denmark: $8.42 per gallon Sweden: $8.18 per gallon United Kingdom: $8.17 per gallon
(Excerpt) Read more at seekingalpha.com ...
Mike
I am amazed at how passive Americans are about gas price hikes this time around. Remember when prices spiked upwards to around $4? The gnashing of teeth and the outrage! This time... just a meek shrug of the shoulder. Of course, it always helps those in power to own the media, which will dutifully tamp down passions by giving the subject minimal treatment.
The article may have some merit, but I HATE this "addiction" simile. The correct comparison is water. Oil is no more an addicting drug than water is. We need water to live. Our economy needs oil to live. There is no forthcoming replacement. The greenies need to get over it.
Not only will Americans continue using gas at current levels, since it’s a Democrat in the White Hut, they will barely notice that prices have gone up.
$5 per gallong gas? Bring it on, my neighbors barely notice. As long as it’s not Bush and Haliburton manipulating gas prices, it’s all good baby.
Fricken morons. I do worry that the dough heads who don’t notice such things will re-elect that POS in the White Hut now.
Another economically ignorant article.
When Canadians pay $5.00 for gas, and Americans pay $3.00 for gas, the question is: How many miles does each driver drive?
If the average American drives 12,000 miles per year, and the average Canadian (because of the higher fuel costs) drives 10,000 miles per year, then the effect of the higher Canadian price is fully explained by a reduction in the quantity demanded.
Jeez. This was from Seeking Alpha?
The next time a liberal needs an ambulance, police car, limo, airplane, fire truck, etc. I DEMAND that they end their addiction to oil and go without!
High prices may not eliminate my thirst/need for gasoline, but the higher it goes, it will certainly cause me to alter my behavior in ways to reduce the number of trips I make to the well to fill my buckets.
I heard Britain sells petrol after the conversion to an equivalent $9.60 US dollars. Whats ironic is that you can get high performance good looking vehicles there such as the jaguar and such with even some with diesels that get over 70mpg.
But not here in America, instead we get rubbish thats too soft, too vague, too big and too cheaply built with fuel hungry engines and a complete smothering of exotic high performance diesels.
Try watching a few episodes of Top Gear, just how many US vehicles did they like or approve?
The ignorance on the left about this topic is really stunning. Oil is used for so many other things besides gasoline/diesel/transportation it's ridiculous. Oil is so much more than fuel. Remove oil from your life and you remove many, if not most, things that make life "modern", i.e., plastics, pharmaceuticals, solvents, chemical precursors used in virtually every area of chemistry, etc. The list is endless. Not only that, but there isn't a substance on the planet that is "organic" than oil......
They said the same thing last time, and they were completely wrong.
So, now we’re supposed to believe them?
It's because, at our core, we know we are a beaten and conquered people. I knew it in November 2008. We have no hope of any relief while the Obama regime occupies America.
I was in Brazil about two months ago. I was amazed at all the interesting, fuel efficient cars (mostly of European origin) that I saw down there. There were probably at least a dozen models (Ford, Honda, Toyota, Citroen, Fiat, Mazda) that aren't imported to the USA.
I hate the term “addiction to oil”. It is essential - not a choice. And oil was $109 this morning. Probably not going down any time soon.
Now that the gas prices are so high, the fuel savings fully compensates for the car payment.
Yeah, those models likely won't pass NTSHA crash tests, or cannot without $millions of upgrading. (The adding of weight is what is commonly done, and this sort of ruins the smallness of the car's key to being economical). Note that I am not saying this governmental involvement is necessary; Only that it exists.
I agree, and made the same point in my #2.
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