Oil pushes to $100

[Sprint100]

Oil pushes to $100

Violence in Nigeria, supply disruption in Mexico and the prospect of another drop in U.S. inventories and more rate cuts drive crude to triple digits.

By Steve Hargreaves, CNNMoney.com staff writer
January 2 2008: 1:14 PM EST
NEW YORK (CNNMoney.com) -- Oil prices kicked off the first trading day of 2008 by hitting a new high of $100 a barrel Wednesday on violence in oil-rich Nigeria, the prospect of more interest rate cuts, a halt in Mexican imports and the expectation of yet another drop in U.S. crude supplies.
http://money.cnn.com/2008/01/02/mark...ion=2008010212

[aerospacepilot]

I have already decided that my presidential vote for 2008 is going to be based entirely on whoever has the strongest stance for getting our dependence off of oil.

And I am not just talking about our dependence on foreign oil, I am talking about our dependence on oil...PERIOD! The technology is almost there. We just need to implement it. Research money, Legislation to require a % of all energy used to be renewable/nuclear energy, massive tax credits for 100% electric cars, and for companies building them... Just do it already!


I am sick and tired of anytime someone picks up a gun in Nigeria, Saudi Arabia, Iraq, Iran, (insert oil producing country here) that the price of oil skyrockets. Heck, anytime we hear good news from the US economy (job growth, interest rate cuts, etc...), the price of oil skyrockets because that signals the demand for oil may increase, thus dragging the US economy back down. And if you are in the airplane industry, rising oil prices may be the single biggest reason why our industry is in termoil. (NPI)

I seriously believe that eliminating our dependence on oil will lead to more economic growth than any of the traditional methods (tax cuts, job growth, etc...)

[wheelsup]

The American population doesn't want electric, plug-in hybrid, or any cars of that sort. We want big, SUV like cars that are fast. You can't force people to drive something they don't want. Unfortunately this process will be painful if oil continues it's climb. When it hits $5, $6, $7, $8+/gal that might trigger an effect on the majority of the publics buying and use habits but I'll be the first to admit, I sure as heck couldn't spend $30k+ on an electric/plug-in car right now. It just doesn't make financial sense.

[surreal1221]

It's easy for people to spend $3 on gas.

I'm sure if they did the math and saw how much they really are spending a year on just their automobile fuel they'd go ape ####.

But, this country is too damn dumb and stupid to figure out when they are getting the raw end of a bad sale.

[wheelsup]

$3/gal is a bargain...ever been to Europe?!?

[surreal1221]

Yes. . .many times.

They also have a much better public transit system, along with a smaller surface area to travel - unless traveling from London to the Czech Republic.

American's feel it's their god given right to have the hugest monstrosity of a vehicle. I disagree. But, "free market" right? lol

[athomeinthesky]

Its a pretty easy solution, drive a regular sized car and maybe even sometimes walking to the store at the top of your street. It might even help the obesity problem too.

I grew up in Europe gas is completely ridiculous over there. But people drive smaller cars and you even get charged tax on the size of your engine so people adapt to it.

Lets face it in America we like the convenience factor, you can drive in your big SUV (alone) to get a coffee, mail a letter, go to the bank, and stop at Mcdonalds all without getting out of your car.

As one of the previous posts said I really think it is going to take a prolonged gas price hike to ever really have a major impact on what people are driving. I know lots of people now that are paying close to or over what their auto payment is on gas and they complain but aren't running down to get a Toyota prius.

[Doug Taylor]

That's true. I was reading the local paper (English language of course) in Athens, and it's like 80E for annual registration for cars <1.8L engines and well over 600e for cars with 2.5+ engines.

[E_Dawg]

Big car desires aside, I hope we have the infrastructure in place to ease the switch when oil is no longer a financially viable option.

Much of this country is built on cheap energy, look at the sprawl of LA and the requirement to own a car if you live there.

[wheelsup]

Honestly, we do spend a lot of money on gas but in the big scheme of things it really isn't that much. 12,000 miles/year @ 25 MPG equals about $1500 in gas for the entire year (in fact the average American only has a 17 mile commute, or around 8500 yearly miles, so it is probably less). If gas were $1.50/gal, you would save just $750/year, or put another way the average American is spending just $60 more in gas per month.

Do you feel that's a lot of money? I don't, not to the average American, the average car payment in the US is around $360/month, that's almost three times the amount people spend on gas. Then there's insurance, etc. Heck, according to CITA the average cell phone bill in the US is $740/year.

There are a lot of things people can do to negate the costs of increased gas prices. I hate that we don't have a choice, which I think is everyone's big pet peeve, but then again Americans also show a big propensity to spend on luxuries that really aren't needed and then complain about things that are.

Increased gas prices will primarily hurt those living pay check to pay check, but they will continue to use cell phones, buy new $150 sneakers every 2 months and find other ways to blow their money vs. spending it on gas.

[E_Dawg]

Energy costs affect all consumer items though. How do we get all those 'made in China' products here? How do you get fresh watermelon in Minneapolis in the middle of winter? etc.etc.

It's a very vicious cycle whereby profits are reduced, prices rise, and wages stay the same. Not only does the consumer make less in spending power but is also paying more to get to work.

[Doug Taylor]

It's time for an air fare war!

[surreal1221]

And not just one that lasts for two days. . . it has to last, and continue an upward trend for decades to come.

Air travel was never meant to be cheap. . .

But the "free market" wins again.

[Mr.Maximus]

This is just the tip of the iceberg. World oil supply is going down while demand is growing exponentially. With oil being a finite commodity, the price is going to do nothing but go up. Unfortunately, "big oil" is in complete control in Washington - which is doing nothing but hurting the case for alternative fuel developement. Oil will continue to climb and drag every other commodity with it - because one way or another - every commodity interacts with oil somewhere along the pyramid. COLA of 2-1/2 - 3 % per year? Doesn't even come close.

[flyover]

Originally Posted by wheelsup

but then again Americans also show a big propensity to spend on luxuries that really aren't needed and then complain about things that are.

First of all when gasoline exceeds the cost of bottled water we may start feeling the pinch. Adjusted for inflation it still is not at historical highs.

But, let's hope Americans don't stop spending on luxuries that aren't really needed. Remember when they tried to tax the luxury yacht guys and the only effect was to throw all the blue collar guys that built the yachts out of work? How about if pax stop doing all the flying that they don't really need to do?

[wheelsup]

Originally Posted by E_Dawg

Energy costs affect all consumer items though. How do we get all those 'made in China' products here? How do you get fresh watermelon in Minneapolis in the middle of winter? etc.etc.

It's a very vicious cycle whereby profits are reduced, prices rise, and wages stay the same. Not only does the consumer make less in spending power but is also paying more to get to work.

Absolutely. I was countering surreal1221's claim on how stupid Americans are for spending so much money on gas, when in reality I don't really think we spend *that much* on gas. We spend MUCH MORE on other things in our life that aren't necessary to live, such as cell phones with super amazing features, HD TV, etc. etc.

[surreal1221]

I just said this country was too dumb and stupid to realize when they are getting the raw end of a sale.

Sale could mean fuel, purchasing of idiotic items (your example), or whatever. . .etc etc.

But what do I know.

[N519AT]

Originally Posted by wheelsup

There are a lot of things people can do to negate the costs of increased gas prices. I hate that we don't have a choice, which I think is everyone's big pet peeve, but then again Americans also show a big propensity to spend on luxuries that really aren't needed and then complain about things that are.

But you do have a choice! You can always pick up a used Volkswagen TDI, which runs Diesel, Bio-Diesel or even Veggy oil if you so desire. I get an average of 48 mpg and about 700 miles/tank (there is evidence of people going much further on a tank...over 1000 mi). Sure I pay a little more than the gassers out there for my fuel, but if you figure that an average gas automobile gets 25 MPG...we'll round mine to 50 mpg. I get twice what the gassers get, so at a price of $3.00/gal...my fuel would have to go up to $6.00/gal before I was even with the gasser next to me...

They're cleaner for the environment too and pilots love them!

/enddieselsalespitch

[wheelsup]

Originally Posted by surreal1221

I just said this country was too dumb and stupid to realize when they are getting the raw end of a sale.

I was referring to your comment you made about going ape ####.

[surreal1221]

What's a used TDI go for these days?

Originally Posted by wheelsup

I was referring to your comment you made about going ape ####.

You seem like part of the minority that actually pays attention to how much money they spend on a regular basis.

I'd be willing to bet that MOST people, don't even bother looking at the price of fuel more than finding which one is cheaper. Then, they fill up their 35-40 gallon monster @ the national average of $3.05.

I doubt they go home and do the math. At least the ones that have the monster Yukon, etc.

[jynxyjoe]

Originally Posted by flyover

First of all when gasoline exceeds the cost of bottled water we may start feeling the pinch. Adjusted for inflation it still is not at historical highs.

But, let's hope Americans don't stop spending on luxuries that aren't really needed. Remember when they tried to tax the luxury yacht guys and the only effect was to throw all the blue collar guys that built the yachts out of work? How about if pax stop doing all the flying that they don't really need to do?

firstly water is $0.99 a gallon at the store. or are u talking about the stuff in the 16oz'er?

i think at last look there are more planes than pilots and while i'll agree there is a fine line between making a buck and killing the golden goose i don't think less folks flying because the price on a ticket got jacked up is that bad a thing. i offer no numbers and i'm certainly not an economist.

btw, is anyone on this forum actually an economist?

anyhow. i'm personally hoping the price goes back down like in Leonardo Maugeri's book "The Age of Oil: The Mythology, History, and Future of the World's Most Controversial Resource"

[N519AT]

Originally Posted by surreal1221

What's a used TDI go for these days?

I bought mine (99.5 MkIV GL) for $6800 with 118,575 miles on it. Sure it's a lot, but the cars will run forever if you treat them right.

[jynxyjoe]

Originally Posted by N519AT

I bought mine (99.5 MkIV GL) for $6800 with 118,575 miles on it. Sure it's a lot, but the cars will run forever if you treat them right.

so does a civic.

[surreal1221]

I won't be crying because average joe has to pay $20 more for a round trip ticket. So instead of $250 they are paying $270. Especially if it'll actually help my company turn a profit of some sort.

Oh my! The world is going to end!

They're still paying significantly less than what the actual service costs.

[greaper007]

Originally Posted by jynxyjoe

so does a civic.

Before the rust consumes it.