Oil hit $105. a barrel today, how concerned are you?

Question

Will increases in fuel and food costs effect your spending? When do you think gas will cost $4.00 a gallon?

Answer 1

Energy costs are likely to go much higher until alternatives are brought to market.  Ethanol subsidies are driving up food prices.  $4 a gallon gasoline may arrive this summer.  Understanding the problem is important for our nation.

Oil is a commodity.  The oil producer's profits are based on oil producer's supply and consumer's demand.  Like any good marketing strategy, the producer gets the consumer hooked on their product.  The addiction results in a willingness to allocate a larger portion of your disposable income on the product.   Adoption of large SUVs and long commutes has made the US more dependent on oil (which just happens to be owned by some nasty groups ... Iran, Iraq, Russia, ...).  .

The price of oil will continue to climb because world supply cannot support world demand.  Peak oil may be here:

http://www.a2dvoices.com/realitycheck/En...

The US government should raise the taxes on gasoline to start influencing the public's behavior.  Europe pays nearly $9 a gallon for gas compared to $3 a gallon in the US.  The delta is taxes.  As you pointed out, Ethanol is not the solution because Ethanol raises the price of food.  Clean Coal is a great alternative to Middle East oil.    

Technologies will ultimately help, but a moral society must learn to waste less if they hope for longevity.

Answer 2

It is already more than $4.00 a gallon in some places here in CA.  I will just plan my trips and stay at home on weekends. What else can we do but help ourselves.

Answer 3

You guys have got it good!!!!!!! Stop complaining. You could be paying what we are paying in the UK! All because of your idiot of a president.

Answer 4

I GUESS I WILL LOST SOME WEIGHT THIS SUMMER

Answer 5

it effects everything it seems! food,etc... of course it will slow down spending for some people. as far as the 4.00 dollar a gallon mark it depends on where you live. i suspect here in mi. it will be the summer months. and this summer , who knows? it could be more 5 bucks a gallon maybe? i am tired of the fluctuations!!! bad economy!  BIG-G,,,

Answer 6

well baby face sure said some smack down words . but its a reality check . its going to effect me in every way but that rebate might get me through the summer and that's when it will reach four dollars a gallon across the country. we will never see two dollars a gallon again.

Answer 7

its getting stupid and its starting to aggravate me

Answer 8

these price rises are world wide, now that is really worrying