eohrnberger

Tifo, well yes and no. Yes, we've had it far too good for far too long, when compared to the rest of the world.

The problem is that everything in the US moves by semi-truck. So, if there is a fuel cost increase, every step in the value chain (from raw materials to finsihed goods to end consumer) takes a fuel hit, hikes their prices to make up for it.

It is incredibly regressive like a value added tax (VAT) is, and would have a very significant impact on the economy in general (remember the embargo of the 70's?). I'm not sure that you want that, 10%-15% unemployment? A recession that didn't really clear up until the early 80's?

Fill up the car? Hell! 55 gallon drum or two!

The thing that I just can't figure out is why the oil companies have had a 35% - 50% increase in profits (record profits!) when their raw material cost has double in price. Seems like they should be affected by this cost increase as well and be suffering along with the rest of us (in spite of the $billion in tax breaks that they just got in either the transportation bill or the energy bill). Seems to me that something in rotten in Denmark here!

And by the way, Hawaii is that state that indexed their gas prices based on east and west cost prices averaged. Perhaps we should all start lobbying state governments for this type of price controls on gas?

marky522

Yeah, i just read about Hawaii freezing there prices, the oil companies are showing record profits, suppoosedly more profits than any other... Ridiculous

Mark

M758

Well, From what I have heard most of europe's gas prices are from taxes not from the cost of the actually gas. The US simply has lower gas taxes than in other places.

schnellfahrer

In Norway 70% of the price of gas is taxes.

ljibis

I found myself getting a little bent out of shape last night about how high the prices have gotten, but then I did some math and found out that I'm only paying $30/month or so more than last year - and that's being pretty generous with consumption. That's a few days worth of lunches out....not a big deal.

My 944 manages 30+ mpg in my day-to-day driving around the city, which I feel is really good. I'm taking a long trip with it over the Labor Day weekend, so we'll see how it does there. This is the society we've built, so I'm of the opinion that we have to lie in the beds we've made. We elected leaders time and time again with no clear vision for an energy future, and have been content to rely on a product that we have to import from half way around the world. Oh, and we've been encouraged to use more and more of the stuff through tax breaks on big trucks and prices held artificially low because the government would never dream of actually showing people the consequences of their addiction. I think it's time to adopt Europe's model of taxing the hell out of gas - 70 to 80% of the price there is tax to encourage people to use less.

I dunno, we'll see how bad this storm broke up the refineries, but it appears that the worst of it went east of New Orleans. And aside from that, they are built to withstand storms so they'll probably get production back rolling once power is restored. The government will loan out oil from the SPR if they need to...they did it last year for Ivan, so it's not unprecedented. It won't be as bad as the doom and gloom people are predicting...and just remember, you could be one of the people losing their home.

Mongo

God forbid that gas goes up to $4. After the hurricane I think the price of oil may drop only slightly. It still amazes me that gas prices shot up so fast. I spent 45 dollars refilling my 928's fuel tank this weekend Another 25 this morning on my car

eohrnberger

While I would agree that we (the US) need to stimulate fuel conservation, as well as development and production of more fuel efficient vehicles as well as alternative energy vehicles, all of that will be exceedingly more difficult in difficult economic times (if the patient dies, he won't get any better).

If the price of diesel fuel continues to rise, perhaps Amtrak can become economically viable as a freight system? Once can only hope, I guess.

ljibis

I agree with your point....it would have been easier to start developing an alternative infrastructure when gas was $0.99/gallon. Hindsight is 20/20 and all that.

Still, we could be growing all the fuel we need. E85 and Biodiesel are good alternatives that we're not using enough of. Sure, it's subsidized and needs more R&D to be as efficient to produce, but I'd rather throw my taxes at US jobs and progress than some oil barons in far-off countries.

Just my two cents....

Mongo

I think they did a price check on gas in the Middle East not too long ago. To the surveyor's amazement, including those who read the article, prices were that of the 1980s: $0.85-0.95 per gallon approximately. Dunno if that still stands now or not...

This is BS we should get some sort of #1 customer discount by OPEC...HAH, like that will happen

silverBean

I was watching the news this morning and i believe that one refinery was knocked out, i mean parts of it came inland and hit a part of the 1-10 that turned into a bridge. I was studying and listening to the news so that isn't verbatim, but you get the idea. I don't remember if it was a natural gas or petrol refinery though. Gas prices are estimated to jump over 20+ cents a gallon after this. Glad i didn't bring my car down to school.

jonnybgood

Save gas, Ride your bicycle! Partially due to my cylinder head rebuild I have not driven for 4 weeks. I have a 10 mile ride to work one way so it is a perfect commute. My Chevron bill was zero this time. I plan to continue riding after my car is running again and I am getting rigged up for winter as well. I suspect the high prices will force many back to bicycling. I have lost 8lbs, my gf is impressed with my thighs and I save on gas bills, where is the down side?

Mongo

Hey guys I took a look at MSNBC today and found this:

http://www.msnbc.msn.com/id/9117057/

Hopefully if we tap into the reserves, it may help somewhat

Porsche-O-Phile

There was one gas station in particular in Chicago near where I used to live - right off the 290 expressway by Helix Camera (know where I mean? Kinda' near the United Center). I think it was a Mobil and was reputed to be occasionally the most expensive gas station in the country. I'd be curious to see what they're charging now. If I had to guess I'd say well over $3.00 for regular and closer to $4.00 for premium, but that's guessing.

Highest I've seen was last week - a similar "rape me" gas station near here that for some reason has always been 10-25% higher than every other station around (a Shell) was charging $3.19 for regular and $3.69 for premium. On a side note, maybe that was just the previous owner trying to get his last digs in, since I noticed yesterday that the ownership had changed to a "United Diesel" or something (temporary white "sheet" signs covering all the Shell signs). . . The gasoline prices were a lot better than they'd been (IIRC it was $2.59 for regular) but the diesel was VERY high - I think it was $3.99.

I've got all my birds (and reserve tanks) filled up and I'm exclusively riding the motorcycle or taking the trains. I know a lot of people say "prices everywhere else have been proportionately lower for a long time" and they're right (especially considering European prices). Then again, I think other costs in this country are higher and it'll take a LONG time for people to adjust their lifestyles/money allocation to the new pricing demands of our friendly neighborhood oil barons. All-in-all though, it's probably going to be a good thing in the long run - it's just growing pains. FWIW one tangible benefit I've already seen from the high prices is a perceptable reduction in the number of "junk barges" cruising the alleys near my place and picking through the trash at odd hours. . .

eohrnberger

Wouldn't a downside being all sweat and stinky all day at work?

tifosiman

Nah, not at all. You learn to wipe down with baby wipes or take a shower (if your office is so equipped). If you pack your clothes correctly in your messenger pack they can be as wrinkle free as your clothes are from a few minutes driving in the car with the seatbelt on.