Gas Not Dropping Below $1.50 Until Nov.

Reuters ^ | 09-08-03

[Brian S]

Mon September 8, 2003 01:45 PM ET By Tom Doggett

WASHINGTON (Reuters) - U.S. drivers can expect high gasoline costs through the autumn, with the national monthly pump price not falling below $1.50 a gallon until November, the government said on Monday.

Gasoline costs, which hit a record high of almost $1.75 a gallon two weeks ago, should fall to a monthly average of $1.67 in September, $1.55 in October and then finally drop below $1.50 in November, the Energy Information Administration said in its monthly energy forecast.

Pump prices jumped in August because of strong demand, and at the same time the power blackout closed several refineries and there was the shutdown of a major gasoline pipeline in the Southwest.

"This month, pump prices should begin to recede because many of the local supply problems have been alleviated and the driving season winds down following the Labor Day weekend" the Energy Department's analytical arm said.

Meanwhile, demand this winter for heating oil, electricity and natural gas should be lower, but consumers will be paying more overall to heat their homes with natural gas, EIA said.

The agency said it expects this winter to be normal, which should reduce demand for heating fuels compared to last year's much colder weather.

"We're assuming normal weather, so that's going to be warmer (temperatures from last year) and that means demand is lower," said EIA analyst Dave Costello.

As a result, the season's heating bills should also be lower. The one exception is for natural gas, which is expected to have less demand, but will cost much more to use, according to Costello.

"The natural gas (price) will be enough higher that it will offset the decline in demand for natural gas and the bills will actually be higher," he said.

[Maria S]

Too bad we don't hear this kind of screaming and complaining every time our taxes go up.

[mewzilla]

Too bad the screamers and yellers don't buy fuel-efficient cars :)

[Paulus Invictus]

Hey, what's that? The gummint said that the prices would drop after Labor Day. Actually, they dropped five cents today at Costco.

[Jim Cane]

Too bad the screamers and yellers don't buy fuel-efficient cars :)

Look at me, I'm gay!

[Patangeles]

A good idea would be to tax foreign oil imports. We need to make American oil drilling more profitable. I'm not generally for taxes, but in this case, it might be for the better.

[Poohbah]

A good idea would be to tax foreign oil imports. We need to make American oil drilling more profitable. I'm not generally for taxes, but in this case, it might be for the better.

Congratulations. Do nothing to fix the real problem (domestic refining capacity), but tax the imported gasoline, and then complain some more about the high prices.

[discostu]

How about making American oil drilling more profitable by cutting down on the insane regulation?

[Patangeles]

It would be best to tax imports and deregulate the oil industry's domestic endeavors. Open up Alaska, and the Gulf of Mexico to drilling. Give tax deductions to businesses and residences that use proven solar hot water systems.

[A Navy Vet]

Sshhh. Some things are best left unsaid...;)

[Patangeles]

Drain the dollars away from the Wahabi Cult's interests, one by one, piece by piece. And why not?

[discostu]

If domestic oil is properly regulated then importing oil will price itself out because it's such a pain (those boats are expensive and inefficient, at least when compared to pipelines). I wouldn't go so far as to call solar hot water systems proven, they kind of suck even in Tucson.

[Patangeles]

They work real good here in NY, according to one homeowner I visited recently. Used as a backup system, they heat the water to a temp much warmer than the groundwater, especially in the winter. He had one installed 25 years ago and has saved thousands in home heating oil, which was only needed in the very winter. In the fall and spring, thins house used little or no oil at all, unlike most houses, including mine.

I agree that solar cells are a waste of money. But solar hot water heating is a long proven technology.

[Patangeles]

thins = this hmmm.

[discostu]

Yeah they're OK as backups, but on their own forget it. And outside of semi-industrial I've never needed a backup water heater.

[Patangeles]

Well, in AZ, you can take a shower without hot water! In NY, we need it, because the ground water is 45-50 degrees in the winter! And it costs a bundle to heat it up! :)

[discostu]

Hey we get actual cold tap water... sometimes... once or twice a year. Yeah I guess it's different for you guys, in AZ most of the time your waterheater can keep up with you for home use.

[Patangeles]

It's interesting becase ironically, you live in the land of the eternal sun, but we are the ones who need to use technology to collect the sun's warmth. Because it's cold!

For example, if you have to heat up ground water at 45-50 degrees to heat a house through a base-pipe heating system, it takes a lot of oil, but if the water has been halfway-warmed up to 60-70 degrees, it takes a lot less fuel to heat it enough, or at all, to heat the entire house.

[Chemist_Geek]

We don't want to build more nuclear power plants (because they have the word "nuclear" in the name), they don't want to build more oil or coal-fired plants (because they put out icky stuff), they don't want any more hydroelectric dams built (because they make rivers less wild and scenic), and they don't want any more windmills built (because they're "condor cuisinarts")...but they still expect the damn light switch to work, and the bill to be nice and inexpensive.

And they don't want photovoltaics because making them uses icky chemicals and they don't want fuel cells because they have to get H₂ from somewhere and don't forget about the Hindenburg blowing up...

*sound of C_G's head banging against desk*

There, I feel much better now. You've got it nailed, Poohbah.

[Poohbah]

I dunno. Maybe they expect illegal alien galley slaves to turn the generators.

[WestPacSailor]

Too bad the screamers and yellers don't buy fuel-efficient cars :)

This baby uses much fuel, most efficiently:

...

And if that don't use the gas, maybe this will satisfy y'all: