Am I right? Gas will NEVER go down until we stop using so much of it...?

Question

I think gasline would go down if we all just used it for getting to work, going to the hospital and other basic necessities. We surely consume a large percentage on silly recreational use- boats, races, go carts etc. I posted this idea one other time and a woman wrote back " boating is not silly recreation..its relaxing"...I think we are doomed....

Answer 1

Yes that is true according to the Law of Demand and Price of an object.

Answer 2

Nope. If we drill in Alaska OR we have better relations with the Middle East OR lower taxes on gas, which by the way, ADD UP TO MORE THAN A DOLLAR PER GALLON. Those are the things that are going to make gas go down. Not to mention we can bring some of these troops home, which would also do the job.

Answer 3

the problem is economies of scale. If you use a lot of something, then producers make more of it, which makes it cheaper to process and cheaper to sell. So if you use less, then it costs more to make.

Oil prices are not so much governed by how much you use, but by how much you'll pay for it.

Answer 4

Gas will only drop a few cents... maybe back to $3.50 US. That was the breaking point for most people. Big Oil has gotten the price up to where they are making obscene profits and they love it. If people had pissed and moaned as much as they are right now and made a decision to change their habits then the price would not be near as high. The other problem is out of control speculators with their predictions of high oil prices based on little information. 5 yrs ago there were maybe 25 speculators, today there are over 1,000 all making predictions on the price of oil, based on their own understanding of the world markets. Most are probably glued to their computers thinking they are gods gift to the oil industry. Our only hope is for people to embrace alternative energy sources and for manufacturers to realize `consumers want them and make the technology affordable.

My 2 cents worth!

Answer 5

You are wrong. There is no shortage of oil. High prices are due to other factors. Since the petroleum industry is controlled by a handful of companies, if demand were to go down, they would adjust production by a like amount. Prices would remain high in order for the oil companies to continue to enjoy their record profits.

The economic principle of supply and demand doesn't work in an industry that is heavily monopolized.

Answer 6

you are wrong..because what ever you save is going to china and india.....china has 10 cars per 100 people   germany 60 cars per 100 people....and usa 80 per 100...China is adding 25,000 cars a day to its fleet...we cant tell them to stop.

Answer 7

Yup, spot on.

Answer 8

Price will never come down. The oil is a unrenewable resource. If anything it will continue to get higher or the price will be at a stand still.

For example. now the prices will comtinue to fluxuate because we have some oil left to use. But once it gets to the point that the unrenewable source is so low that its become rare, it will go up even more. Just for the fact that it's rare and unrenewable

Answer 9

You [and Redeft] think you've got problems.  Our petrol [gas to you] is Australian dollars 1.70 per litre.  There are 4.54 litres to the gallon, therefore one gallon here costs around Aust. $ 7.70.

Stop crying!  You are getting it at what we would be extremely happy to pay.

Answer 10

I disagree. Gas won't go down until we realize where all the fuel profits are really going.

Answer 11

agreed