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Old January 2nd, 2008, 22:46   #46
Maximillian_Jenius
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Default Re: Oil pushes to $100

Quote:
Originally Posted by Kevin.Held View Post
I agree. Thanks to the mighty credit card, I think it will take >$5/gal gasoline to significantly change people's consumption habits. Lets do math: At $3/gal, a 30mpg civic, driven 12,000mi/year would cost $1200 every year to fuel up. At the same fuel price and 12000mi, a 12mi/gallon Hummer will cost you $3000/year. While an extra $1800 per year may scare a 1st year FO into a honda, I don't see it affecting middle class, two-income America. Also, consider the fact that SUV prices have gone down. I'm speculating, but I bet an Expedition sells for 3-5000 dollars less than it did 3 years ago. That's 2-3 years worth of "free" gas.

Since the American consumer won't change his/her habits, I think it falls on the government to step in and prevent a situation where they will have no choice. I'm not for big government, but legislation seems to be the best way to cut down on demand. If you make the consumer pay bigtime for that gas-guzzling SUV, the manufacturer will have no choice but to make it more efficient. If you make it really expensive for the lazy people to drive around the corner as opposed to walking, they will stop. If you make it really expensive to fly on that fuel chugging regional jet, people will buy the mainline ticket at the inconvenient time. (Obviously a different conversation for a different time). Unfortunately our government has decided that an increase in supply is the best solution ::cough::inbedwiththeoilcompanies::cough::

One last rant...We as a planet will be dependent on oil until the day the last barrel is sucked from the ground so to demand that we all drive electric cars is dumb, because where do you think that electricity comes from? Heat is the most efficient and controllable form of energy and petroleum is the cheapest and easiest source. Oil is here to stay people. The only reasonable way to curb America's apetite for petroleum is to force them to use less.
The Fed already stepped up. I believe that I read a week or two ago that by XXXX date all autos in the US must get XX to the gallon.

For this example, I'll say 35-40 a gallon. Remember that was an example, not fact!
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