The Revolution?
I read an article today, commenting on oil hitting a record $65/bbl today, and continued surprise that higher gasoline prices haven't clearly dampened demand yet.
On Monday I was surprised to see $2.49/gallon gasoline (while riding my bicycle!)
***** From article...
Even so, Cordier said he has been stunned by the recent runup in oil and gasoline prices and the lack of any response from motorists. Gasoline prices averaged $2.37 a gallon nationwide last week, while demand picked up by 1.4 percent from a year ago, according to the government data.
Cordier said prices at the pump may continue climbing "until consumers are crying uncle, which they're not.''
*****
Is there any response but surrender here? (Surrender to whatever prices demand?) Certainly I'm betting there's lots of grumbling out there.
Is there an assumption that prices are temporary? Even the President (with the near useless new Energy Bill) admits it won't help prices in the short term.
Overall, it seems yet a critical mass has decided prices are still acceptable. Maybe there is some slow response - maybe demand would have gone up faster had prices been lower? Maybe "slowing growth" is all we can do for now.
Certainly I think (ignoring profit issues) that higher prices are necessary. I'd let the government gain in higher prices, but people are silly.
I also was just looking at excise taxes. Federal tax is $0.18/gallon, and Minnesota $0.22/gallon tax. I tried comparing states, but it is a little confusing since some charge sales tax, or other fees as well.
Overall looks like only about $0.40/gallon as taxes. When gasoline was $0.99/gallon, it was 40% tax. Now at $2.50/gallon, it's ~15% tax. Untaxes gasoline has risen from say $0.60/gallon to $2.10/gallon, while oil has risen from $15/bbl maybe to now $65/bbl.
Oil prices are 4 times higher, and gas prices between 3-4 times. I accept probably there's overall higher profits now, somewhere, if not everywhere.
If oil hits $100-$200/bbl (under a crisis spike), gasoline could jump a factor of 1.5 to 3 to maybe $3.50 to $7/gallon.
Some people think these are a fair price for the "value" of energy contained in gasoline.
I'm not sure extreme spikes really help "the message" of conservation.
I'm ready for $100/bbl oil - sustained price. Easy to say on my bicycle, but I have to buy things too, and so I'll pay more all around like everyone else.
Will $100/bbl oil (or $3-4 gasoline) send consumers into Revolution?
I don't think so alone, but I guess if it was tied also with high unemployment, bankruptsy, and a deep recession, who knows?
I think we're basically sheep on this. What are we going to do?!
People are powerless. I more fear "what our government" will do - like if Venesuela suddenly offered an oil embargo against us, or whatever.
As always, my biggest fear is circumstances will change in the reverse and prices will tank again, and people will stop thinking about their consumption and dependence.
I
On Monday I was surprised to see $2.49/gallon gasoline (while riding my bicycle!)
***** From article...
Even so, Cordier said he has been stunned by the recent runup in oil and gasoline prices and the lack of any response from motorists. Gasoline prices averaged $2.37 a gallon nationwide last week, while demand picked up by 1.4 percent from a year ago, according to the government data.
Cordier said prices at the pump may continue climbing "until consumers are crying uncle, which they're not.''
*****
Is there any response but surrender here? (Surrender to whatever prices demand?) Certainly I'm betting there's lots of grumbling out there.
Is there an assumption that prices are temporary? Even the President (with the near useless new Energy Bill) admits it won't help prices in the short term.
Overall, it seems yet a critical mass has decided prices are still acceptable. Maybe there is some slow response - maybe demand would have gone up faster had prices been lower? Maybe "slowing growth" is all we can do for now.
Certainly I think (ignoring profit issues) that higher prices are necessary. I'd let the government gain in higher prices, but people are silly.
I also was just looking at excise taxes. Federal tax is $0.18/gallon, and Minnesota $0.22/gallon tax. I tried comparing states, but it is a little confusing since some charge sales tax, or other fees as well.
Overall looks like only about $0.40/gallon as taxes. When gasoline was $0.99/gallon, it was 40% tax. Now at $2.50/gallon, it's ~15% tax. Untaxes gasoline has risen from say $0.60/gallon to $2.10/gallon, while oil has risen from $15/bbl maybe to now $65/bbl.
Oil prices are 4 times higher, and gas prices between 3-4 times. I accept probably there's overall higher profits now, somewhere, if not everywhere.
If oil hits $100-$200/bbl (under a crisis spike), gasoline could jump a factor of 1.5 to 3 to maybe $3.50 to $7/gallon.
Some people think these are a fair price for the "value" of energy contained in gasoline.
I'm not sure extreme spikes really help "the message" of conservation.
I'm ready for $100/bbl oil - sustained price. Easy to say on my bicycle, but I have to buy things too, and so I'll pay more all around like everyone else.
Will $100/bbl oil (or $3-4 gasoline) send consumers into Revolution?
I don't think so alone, but I guess if it was tied also with high unemployment, bankruptsy, and a deep recession, who knows?
I think we're basically sheep on this. What are we going to do?!
People are powerless. I more fear "what our government" will do - like if Venesuela suddenly offered an oil embargo against us, or whatever.
As always, my biggest fear is circumstances will change in the reverse and prices will tank again, and people will stop thinking about their consumption and dependence.
I
posted by Ares Olympus at 1:59 PM
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