Gas prices reaching 7.00$ WHAT?

Question

I think this is a bunch of b.s but there is a article here about that future of aviation http://tnr.com/politics/story.html?id=78260c55-a850-478f-9ffd-b8023fd89459 And in the article it says "Jeff Rubin, chief economist of Canadian investment bank CIBC World Markets, has predicted that gasoline will hit $7 per gallon by 2010,"

(fourth paragraph)

#1. Will gas prices even be close to 7.00? Wouldn't the government approve of off shore drilling if it even becomes that high? Or use more "cost efficient" methods?

#2. Is that really the future of aviation.

In my option, this is just bull and isn't true in the case, but what are your options/ thoughts

Answer 1

Are You Tired of Paying High Gas Prices? Then Read This

http://www.associatedcontent.com/article...

Answer 2

I belive we are being weened off of our gas guzzlers by the gov. We are getting acclimated to driving less and smaller cars like the rest of the world. Ithe age of excess in america is comming to an end

Answer 3

Gas prices in rural Alaska are over $10.00 a gal trust me you dont want to be paying for energy in America's largest, coldest, most northern State.

http://www.adn.com/money/story/486188.ht...

In rural Alaska, lifestyles change as prices soar

In rural Alaska, lifestyles are changing as prices soar

By STEVE QUINN

The Associated Press

(08/07/08 00:40:31)

BARROW -- A gallon of unleaded gasoline: $10. Heating fuel: $9.10 a gallon. Electricity: $1.17 per kilowatt hour -- 11 times the national average.

Where are we? Some heavily taxed European nation, or in the future when global fossil fuels have grown dangerously sparse?

Try right now in Barrow.

Soaring oil prices that swelled Alaska's treasury have come back to slam the state, particularly its 170 rural villages.

Gov. Sarah Palin has proposed checks of $1,200 for each resident to help relieve some of the burden, using a surplus from the oil-rich state treasury. In the final hours of the special session, legislators are debating that proposal.

But in far-flung villages, people expect things to get much worse.

The seasonal barge shipments of fuel have yet to arrive, meaning villages are still paying last year's prices. Those prices are already about 60 cents higher than the U.S. average.

Here in Barrow, the nation's northernmost city located just a few hundred miles west of the country's largest oil field, residents pay $4.65 for a gallon of gas. When the barges come, that price tag will be closer to $7.

"I'm tired of everyone else harping on $4 a gallon for gas," said longtime Barrow resident Marvin Olson. "We've been paying that for four years when everybody else was paying $2 a gallon."

High costs are hardly new for many of these villages, but the situation is becoming dire and some are fleeing. There are darkened apartments, abandoned ahead of the coming winter when minus 50 will be considered a nice day. Villages are trying to figure out how they will pay for enough fuel to make it to summer.

In some villages, the season's first snow is barely two months away.

Rural Alaskans will spend 40 percent of their annual income on energy this winter compared with 4 percent for the average Alaska household, according to a University of Alaska Anchorage study published in May.

The Legislature is considering several lifelines, including Palin's proposed relief checks.

This would be in addition to the Permanent Fund Dividend, projected to be about $2,000 this year.

Palin and some lawmakers on a recent trip to Barrow said they're tired of suggestions that Alaska gets more than is fair from the federal trough.

Alaska received $1.84 in federal spending for every $1 the state paid in taxes to Washington, according to the Tax Foundation, a nonpartisan organization. The state ranked third, behind New Mexico and Mississippi in 2005, the last year figures were available.

"We are taking care of the challenges we have in Alaska on our own," Palin said. "We are not asking Congress for relief."

A MATTER OF SURVIVAL

Boats and four-wheelers are used to hunt. Besides food, the hides are used for clothing and to line whaling boats.

This whaling community of 4,000 relies on the land and sea to survive.

Animal hides hang from lines. Armed hunters search the Arctic Ocean looking for bearded seals. Off-road vehicles return home weighed down with fresh-caught caribou. There are ceremonies in the center of town to celebrate a successful bowhead hunt.

At a grocery store two blocks away, a loaf of bread goes for $6; a gallon of milk, $10; a dozen eggs, $4.60; a pound of strawberries, $10; a half-pound of lunch meat is $7.

"If we had to go to the store and buy everything, we'd probably be on food stamps by now -- if we didn't have our land and sea animals," said North Slope Borough Mayor Edward Itta. "More and more our take-home pay is going to be spent buying gas to go get caribou, to go get fish, to go to our camps and gather our food."

Fuel-driven changes to tradition are the norm across the Bush.

Henry Horner lives 300 miles southwest of Barrow in the village of Kobuk. He fears gas could reach $12 a gallon by the fall hunting season.

"Normally I run into six or more boats on the water this time," he said. "Where I went on the Kobuk, I was the only one there. I'm still wondering how many of us will be able to go hunting moose and caribou this year."

Barrow is better off than many villages. The community gets subsidized natural gas from nearby fields. It has benefited from oil field property taxes that have helped build new schools and municipal buildings.

Word of hardships in other villages are slowly making their way to Barrow.

People shell out $10 a gallon for unleaded fuel in Anaktuvuk Pass; those from the state's southern coastal region pay $9.10 for heating fuel in Kokhanok; and electricity costs $1.17 a kilowatt hour in Lime Village out west.

The wait for Barrow's next fuel barge shipment in about a month, usually a time of relief, is now a source of growing angst. People know its arrival means gas for the next year could be in the $7 to $8 a gallon range.

Said Barrow whaling captain Jacob Adams: "We could be going back to dog teams if we can't afford the cost of gas for subsistence hunting."

Answer 4

Where paying somewhat around 35 canadian dollars here just for 5 gallons.

Answer 5

It's already $10-$15 gallon in Europe (Germany, Netherlands,England)...what can't you see happening here? They all drive tiny cars and ride bikes everywhere.  Even cutting back on driving won't help obviously.  It's not supply and demand. It's politics.

Answer 6

I came across an interesting graphic from www.urban.org for the second quarter of 2005 which shows what role taxes play in the price of a gallon of gasoline.  At that time, the US average price was $2.06 per gallon.  Forty-six cents of that price was from taxes.  In Canada, taxes per gallon averaged ninety-five cents.  In the UK, taxes per gallon averaged $4.22 a gallon (the fuel itself was only $1.51 per gallon at that time).  Australia ($1.39 taxes) Japan ($2.15 taxes) Spain ($2.54 taxes) France ($3.77 taxes) Germany ($4.01 taxes).

And this was three years ago!  So, will gasoline prices go up to seven dollars a gallon?  Only if our politicians impose taxes like the countries above.  Obama's windfall tax on the oil companies which will be passed on to consumers is one such tax.  And, with a Democrat in the White House and a Democratically controlled Congress, what's to stop the addition of more taxes for the "social good"?  The environmental wing is very active in the DNC, so if we give them the power, there will be price increases at the pump!

Answer 7

petrol is roughly $10 per gallon (converted)  in Scotland so consider yourself lucky