Why you pay $4/gal of gas.

[Gig-O-Ram]

Alright - but what is really going on here? Oil and Gas prices have set records for the last fourteen days running, and it doesn't seem like it's going to stop anytime soon. At the current rate of increase - if it keeps up like it has been - we should be paying near $10/gallon before the end of the year. I've already heard talk of (like someone mentioned earlier) $15/gallon. I understand Chicago is already at or over $4/gal. I've seen prices here near Albuquerque approaching $4, and I'm really glad I don't own my own rig, as diesel is over $4.50/gallon in some spots.

And according to some reports, anyone making less the $50K/year is technically in a depression, and those who make somewhat more than that are in a recession.

Why now does it seem like everything is spiraling out of control?

And not to get off topic, but I hear Bush wants to give enriched uranium to Saudi Arabia in exchange for more oil output, when at the same time, he wants to attack Iran before he leaves office because of their aspirations to enrich uranium for their nuclear program. Does that strike anyone as odd?

[screwballl]

big oil is testing us, they continue to increase the price of oil and gas to see what the market can take and what people will pay. I think it is pretty much reaching that point now. Between the banks and big oil, they are bleeding the US dry and by the time they realize they have gone too far, it will be too late and both the banking/credit lines will crash as will the oil market...
Someone needs to come up with a cheap and easy alternative fuel and quick. I have been looking into this HHO setup but for anything larger than a 2.0L 4 cyl, it can only be used to make fuel economy increase but not usable for the entire fuel source. Batteries are a clean way to go but it is just shifting the pollution from our own tailpipes to the power stations. Really the best way to go to be clean and efficient all around is the hydrogen setup once they get the algae process perfected or a magnetic motor where no power (or a little from a standard car battery) would be used. No pollution, no fuel costs, no continuous maintenance costs...

[Gig-O-Ram]

I'm with you, that a cheaper alternative needs to be found. Brazil is already energy independent, using either ethanol or something along those lines. I keep hearing people say that if Brazil can do it, then so can the U.S. I have always thought that hydrogen would be a better, cheaper and cleaner way to go, but many people feel that it's not practical right now because of on board storage problems. I don't know - we've found ways to do a lot of things, so I don't understand why hydrogen storage is such an issue. Little out-of-the-way Iceland has moved to a hydrogen infrastructure, so what's our problem? Wait - maybe "Big Oil" is aware of the possibilities of hydrogen, and are just trying to figure out the best to way to gouge us for that. They certainly have the cash to switch our infrastructure from oil to hydrogen, but they need to figure out how to best benefit from doing that, since that's what's really important.

[PTRMAN]

Maybe this thread is dead but I found this analysis interesting. Maybe you will too.

Crude Awakening: Behind the Surge in Oil Prices - Economic Letter, May 2008 - FRB Dallas

[onebxr]

Ride a bike to and from work and save money and lose weight in the process. I dont do this but hey, its a good idea!
-1

[drew and not u]

I'm just going to start hitch-hiking everywhere. More interesting anyways!

[onebxr]

Originally Posted by drew and not u

I'm just going to start hitch-hiking everywhere. More interesting anyways!

And you get to meet new people! Rich people! Because us poor suckers wont be able to drive.
-1

[drevsdre]

I'd ride the bus tio work if this city had a real public transportation network. it really sucks...damn you Cleveland. At least Pittsburgh, where I'm from, has an excellent transpo system. It's a 30 minute drive to work for me, and I'm paying an average of $3.93 - $3.99 a gallon. After reading all of your comments, I'm even more depressed than i was 15 minutes ago. Oh well, me and my gf were looking at motorcycles, but we will see. Think I will call up that kid who built an engine on vegetable oil. maybe he can help me out....

[screwballl]

One line says it all in PRTMANs link:

...the gains are largely in heavy crude oils that can only be processed in specialized refineries. Those facilities are running full bore, so the added supplies aren’t relieving a tight market. The latest evidence also suggests OPEC is now restraining its output.

BOOM headshot.... new refineries are not being built so existing refineries are already at 99-100% capacity while usage continues to go up. It will continue until the major users build more refineries and fast or a major and cheap alternative fuel (not ethanol) takes over.

[PTRMAN]

I think I noted it somewhere earelier - Argentina and tin-pot (and maybe tinfoil hat) dictator Chavez has this heavy crude which can only be processed by refineries in the US, so his threat to stop shipping oil to us really doesn't carry much weight.