Gas prices? And why you might like them....

[Goodspeed]

So I'm surprised there isn't yet a gas price thread on here, given that its definitely a hot topic everywhere else.

I just read a good article on the "10 Things You Can Like About $4 Gas"

http://www.time.com/time/specials/packag...92,00.html

And it pretty much reiterates a few thoughts I've had on the whole situation, with several new ones I didn't think of but readily agree with.

My take: I'm largely fine with paying 4.13 or more for gas. Sure it stings for that one second you hit the pay button, but I have already personally realized many of the benefits mentioned in that article and I'm happy to live with it.

I had to laugh at this article:

http://money.cnn.com/2008/06/19/news/int...topstories

I say let our demand permanently fall. I just hope when the dollar bounces back that we continue with all or most of the positive trends we have been making.

Thoughts? Opinions? A/S/L?

[JohnC]

I'm not upset at all. Let the market drive some innovation. Electric cars? Hell yes. Jobs returning to the US? Hell yes. More localized production/consumption cycles? Hell yes.

We've made a few major changes recently. First and foremost, we moved into town. Not because of gas prices, but just to get closer to almost everything we do. Now, with the price of driving going up, I'm certainly not complaining about the relocation. Jess walks to work almost every day, and as of last week, I'm working from home on Tuesdays and Thursdays.

I also bought a motorcycle. Mostly to satisfy the itch to ride again, but partly to use as a commuter and save some more $$$ on gas.

[Jake]

Well, paying $4.xx for gas isn't fun - though the Miata "only" costs about $40 to fill up, versus $65 for the Escape. That being said, I have no problem taking public transit if it's available and reliable. My driving habits here at home are way different from those at JMU (i.e. you basically have to drive everywhere in Ashburn), and I prefer the JMU habits.

The gas prices don't make me enjoy driving any less. I just find myself planning where I'm going more, and trying to combine trips if I can.

I'm hoping things will settle down at some point, and that the dollar will get a bit of value again. It's similar to what happened in the 70s (at least gas-wise if not the whole economy situation), but hopefully this time around, America has learned it's lesson, and we'll all change some basic habits that will benefit everything in the long run.

[ScottyB]

i'm convinced a large part of this price hike is due to the crappy dollar -- once it recovers i have a feeling the price will come back down a bit.

i'm not complaining though. if these prices are what it takes for:
(A)people to be less thoughtless and wasteful in their trip planning and vehicle choice,
(B) more drive to innovate in the alternative fuels field and
© more consumer awareness (i.e. stop buying cucumbers grown in Chile when you could support locals or grow yourself...personally i make a concerted effort not to buy from China)

...then that's just fine with me.

as enthusiasts we win either way. somehow someone will recognize there is a market for fast stuff, be it powered by gas, diesel, electric, Mr. Fusion, whatever -- and we'll get cool stuff one way or another. the costs will come down over time.

[Mike]

i'm loving it since i fill up at most once a month. that = more money in my pocket versus the pockets of others.

[Goodspeed]

i'm convinced a large part of this price hike is due to the crappy dollar -- once it recovers i have a feeling the price will come back down a bit.

That, and the rapidly emerging markets in India and China. The amount of cars sold in China skyrocketed in 2007, it was unbelievable. China's emerging middle class of the last decade is finally in a position to equal American consumers in terms of energy needs. I'm guessing the same can be said for India.

But, I read an interesting opinion that said our weakened economy will soon catch up with India and China; as we import and spend less (due to transportation costs), they're economies may slow slightly, reducing their intake/demand of energy and lowering oil prices worldwide.

as enthusiasts we win either way. somehow someone will recognize there is a market for fast stuff, be it powered by gas, diesel, electric, Mr. Fusion, whatever -- and we'll get cool stuff one way or another. the costs will come down over time.

True, I was thinking along the lines of "more 100+ octane for us". I'd love to see a flourishing sports car market in the future supported by mainstream electric/alternative energy cars for the masses.

[ScottyB]

I'd love to see a flourishing sports car market in the future supported by mainstream electric/alternative energy cars for the masses.

i'd rock a Tesla in a heartbeat. bring on my electric elise!

[Dave]

Honestly, I largely don't care. I honestly probably wouldn't care if it went up another $1.00 either. I like that it is driving innovation and making the american population think a little more about their "needs" versus their "wants" (does the soccer mom need an Excursion, or the Fusion).
The only thing that I really could wish for is that somebody help out the diesel market. I don't say this b/c I have a diesel, I say it b/c so much of our insterstate shipping is by big rigs, so simply helping that sector could effectively keep prices lower on a lot of stuff.

By and large, my habits haven't really changed aside from buying the NX. The savings alone since the beginning of May have already paid for 1/3 of the purchase price of the car. At this rate, by the end of the year, I will actually "pay the car off" before the end of the year.

I have always tried to make one trip with multiple objectives, rather than multiple trips. Linds and I also very good about taking the most fuel-efficient vehicle whenever possible and carpooling when feasible.I have also secured the ability to work from home, however I have found myself to be far more productive and efficient in the office so I rarely do it.

[John]

i'm convinced a large part of this price hike is due to the crappy dollar -- once it recovers i have a feeling the price will come back down a bit.

False - gas in Europe has followed an identical trend. I'd say that oil is really $85/barrel, and the remaining $60 is pure speculation. I see how the trends work - the traders are acting identically to financial reporting in pre-SOX periods for many public firms...

[D_Eclipse9916]

i'm convinced a large part of this price hike is due to the crappy dollar -- once it recovers i have a feeling the price will come back down a bit.

That, and the rapidly emerging markets in India and China. The amount of cars sold in China skyrocketed in 2007, it was unbelievable. China's emerging middle class of the last decade is finally in a position to equal American consumers in terms of energy needs. I'm guessing the same can be said for India.

But, I read an interesting opinion that said our weakened economy will soon catch up with India and China; as we import and spend less (due to transportation costs), they're economies may slow slightly, reducing their intake/demand of energy and lowering oil prices worldwide.

as enthusiasts we win either way. somehow someone will recognize there is a market for fast stuff, be it powered by gas, diesel, electric, Mr. Fusion, whatever -- and we'll get cool stuff one way or another. the costs will come down over time.

True, I was thinking along the lines of "more 100+ octane for us". I'd love to see a flourishing sports car market in the future supported by mainstream electric/alternative energy cars for the masses.

As I am studying Chinese business and actually have spent now 7 weeks in China talking with Chinese businesses and seeing it with my own eyes (and surprisingly the Chinese talk a lot about India too), the opnion is spot on. China is experiencing a boom that is mostly speculation. I have never seen so much construction anywhere, every street corner a huge apartment complex is going up, literally, its kind of sickening to see how much. However, this is speculation.

The way the government works for construction, is you have to be connected. Therefore, what is happening since land prices are cheap, is people are building building building, and instead of demand and supply curves, the owners are holding onto the empty buildings and demanding outrageous prices. Since the land prices are so cheap, they can just sit there for YEARS and could rent out one or two apartments out of hundreds and still break even. This will prove to be a slowing part of the economy, along with such a huge increase in infastructure which will not be caught up for at least a few years. Many expect an actual decline for a bit, and then a smoothing. Hell you can start to see it in the market already, China was up 300% in the past few years but just took a 50% drop in the past few months.

Gas here is also subsidized so it will be interesting to see what happens. However, China seems to be actually much more prepared for rising fuel costs. All cars here are really fuel efficient, and not many people have them (this is a changing trend however). Also a LOT of China's energy comes from Nuclear power plants and hydro power dams, for example see 3 gorges dam (which is fucking awesome in person). Theyve also introduced a lot of reforms to the people that would seem like smart moves.

The real problem, as China has always had, is its people, China's burden and can be seen in history has been its enormous amount of people. Over 1.3 billion according to the chinese (many analysts see this more like 1.5-1.6 billion). As modernization occurs we will see how China deals with labor problems, although China has really watched the back of the lower class, (examples of this should be taken to the US). Many reforms benefit not the upper class, but the lower class. China's governemnt is very new and despite American propaganda, is much more democratic and open than many people beleive.

Anyway, I tried to keep it short so im stopping here and leaving out many details as most of you probably wont even read what I wrote. :lol:

I went wayyyy off-topic.

Point is, the american dollar will recover, speculation will fall off in the next few months, and a return to cheaper (albeit not nearly as cheap as we used to have it) will be within the next 1-3 years.

[Apoc]

My take: $4.25 for premium makes $7.75 for 100 octance seem like a good deal.

[WRXtranceformed]

*Shrug* my mileage reimbursement just went up to $.585 / mile, so my monthly gas expenditure is usually paid for as long as I do x amount of on the job driving.

[Ole]

2002 GMC 3500 Crew Cab Dually for sale! J/K.

Good article. thanks for posting it.

[ScottyB]

False - gas in Europe has followed an identical trend. I'd say that oil is really $85/barrel, and the remaining $60 is pure speculation. I see how the trends work - the traders are acting identically to financial reporting in pre-SOX periods for many public firms...

ah, i see what you mean. i guess what i was thinking was that because the dollar is weak, speculators have been "hedging" (i think that's the right term) by buying up commodities. would you say that is correct? i would think this would be a cause for part of the current situation.

also, i read somewhere that without the speculation aspect, according to current supply/demand curves, a barrel should actually be around $50 a barrel. i wish i could find the link but i thought that was pretty wild.