Gas Prices

[lockmat]

They've decreased for the fifth week in a row. Is this some sort of phenomenon or am I just young? I thought the summer time trend was for gas prices to continue rising until the travel months were gone?

Funny how low gas prices aren't as big of a story as high ones. Why aren't there investigations as to why this is happening?!

Edited June 30, 2007 by lockmat

[editor]

They've decreased for the fifth week in a row. Is this some sort of phenomenon or am I just young? I thought the summer time trend was for gas prices to continue rising until the travel months were gone?

Funny how low gas prices aren't as big of a story as high ones. Why aren't there investigations as to why this is happening?!

There's a difference between lower and low. IMO, gas prices aren't low until they're below $2.00

August 2, 1990 -- the night of the first Gulf War -- I paid 84-cents a gallon to fill up.

Gas prices have gone up 300-400% in the 17 years between.

I'm not saying that oil companies shouldn't make money. Lord knows I have enough oil stocks. But I don't consider gas prices low yet.

[lockmat]

There's a difference between lower and low. IMO, gas prices aren't low until they're below $2.00

August 2, 1990 -- the night of the first Gulf War -- I paid 84-cents a gallon to fill up.

Gas prices have gone up 300-400% in the 17 years between.

I'm not saying that oil companies shouldn't make money. Lord knows I have enough oil stocks. But I don't consider gas prices low yet.

I just think it's weird that gas prices are going down...in the summer time.

[TheNiche]

There's a difference between lower and low. IMO, gas prices aren't low until they're below $2.00

August 2, 1990 -- the night of the first Gulf War -- I paid 84-cents a gallon to fill up.

Gas prices have gone up 300-400% in the 17 years between.

I'm not saying that oil companies shouldn't make money. Lord knows I have enough oil stocks. But I don't consider gas prices low yet.

Adjusted for inflation, which occurred at a 2.8% average annual rate, you paid $1.34/gal. I paid $2.79/gal. earlier today, which is 2.08 times as much (or a 108% increase) as it was in 1990...but I could've gotten it at a lower price if I weren't along the Katy Freeway at that moment.

[Talbot]

I've been wondering myself why the gas prices have been lowering so much. I have seen $2.77 in Katy.

[editor]

Adjusted for inflation, which occurred at a 2.8% average annual rate, you paid $1.34/gal.

I'd be OK with $1.34/gallon.

Now.. How do we get there?

[TheNiche]

I'd be OK with $1.34/gallon.

Now.. How do we get there?

There are lots of ways, very few of which are desirable. We could set a price ceiling and create a rationing situation as we have done during some 20th century wars and during the 70's. We could implement a quota on automobile imports and production, thus limiting the growth of our demand. We could outlaw the use of non-commercial trucks, SUVs, vans, and any car that isn't a hybrid or that doesn't have an otherwise gay-looking body style. We could sabotage our own economic growth in any number of ways, for instance by abolishing property rights, thus removing much of the incentive to produce and our ability to consume goods and services, and thus consume gasoline. Or we could simply plant tactical nuclear devices throughout those highly-populated parts of India and China that don't have refineries, and eradicate the economies that are growing so rapidly and creating so much demand for gasoline. Take your pick.

Or we can just create a guaranteed lax regulatory environment in some part of the U.S. that no one seems to care about, perhaps Puerto Rico (since they can't vote), to accomodate lots and lots of new refineries with very little red tape, but all the benefits of political stability and protection by the U.S. military. That would be a very pragmatic solution. Realistically, though, if you just wait five to ten years, new refineries will be built and completed elsewhere to accomodate global gasoline demand. They won't be built here because our regulatory environment is too strict as compared to that of places like Mexico and other parts of Latin America, and as we become an import-dependent nation where refined products are concerned, you'll probably never see an inflation-adjusted $1.34/gal. price again, but it might get pretty close.

[houstonmacbro]

There's a difference between lower and low. IMO, gas prices aren't low until they're below $2.00

August 2, 1990 -- the night of the first Gulf War -- I paid 84-cents a gallon to fill up.

Gas prices have gone up 300-400% in the 17 years between.

I'm not saying that oil companies shouldn't make money. Lord knows I have enough oil stocks. But I don't consider gas prices low yet.

Agreed. When I began driving here (2005) gas was in the $169 - $1.89 range.

I don't think $2.50 - $2.90 per gallon is cheap at all.