Gas at $4 a gallon

[Patrick]

It could happen! But will it? They say gas will be at $2.35 per gallon by Memorial Day weekend!
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"Gas to reach $4 per gallon?


By Alex Cameron
NEWS 9


At the risk of sounding like a broken record, gas prices are again at record levels in our state at $2.08 a gallon.


But if you believe one report out there, we should enjoy this while we can, because it's only going to get worse; a lot worse.

Analysts with Goldman Sachs say the oil markets have entered what they call a 'super-spike' period where oil prices could surge as high as $105 a barrel, a price that could mean having to pay more than $4 a gallon at the pump.

With Oklahomans still wincing at paying $2 per gallon, the notion of having to shell out twice that doesn't sit well.

But is it crazy?

Oklahoma Independent Petroleum Association President Mickey Thompson says that while the Goldman Sachs report is a bit alarmist, he doesn't believe, as others do, that it's irresponsible.

So far, there's no evidence gas consumption has dropped or that Americans are trading in their gas-guzzling SUV's for more fuel-efficient vehicles, when Thompson says that's exactly what we probably ought to be doing.

So why are we in this position? Simple supply and demand is a big part of it, experts say. Supply can't keep up with demand, especially the demand in China, where a billion people are gradually switching from riding bikes to driving cars.

There is, of course, an upside to this. Oklahoma oil and gas producers are doing very well right now, which benefits the state. "

[Patrick]

Again, I must say, this is all price gouging. Americans have been driving gas guzzling SUV's for several years now, all the way back to the Clinton administration. Why all of a sudden do we see huge increases now? Something is fishy here.

[Midtowner]

My theory -- Goldman Sachs has invested heavily in oil futures and is now trying to talk the price up.

[Patrick]

Oil stock keeps rising. That should tell you something.

[rxis]

many traders are long on oil and production has dropped in the yukos
bleh...heard it on the news and it is too late for me to be here. Brain is working too slowly.

[Patrick]

At the current pace of price increases, looks like it will reach the $2.35 per gallong for regular unleaded by Memorial Day, like I predicted.


Strange how our government doesn't seem to be donig anything about this. Come on.....we rule the Middle East now! We need to use our powe over there to pull down prices.

Yeah right...why would Dick Cheney do that?

[Midtowner]

Oil stock keeps rising. That should tell you something.

The bubble will burst one of these days..

Perhaps Willie Nelson's bio-deisel will take off?

(it's a diesel made from vegetable oil)

[Patrick]

Rising gas prices are benefitting the sale of hybrid vehicles. That's a good thing:

"Demand for hybrid cars rising


By Amy Lester
NEWS 9


Prices at the pump held tight at $2.16 over the weekend, but new reports are sending out yet another warning.

The Energy Department expects gasoline to go up another 15 cents a gallon.

Amy Lester found out that has Oklahomans flocking to fuel-efficient cars for relief.

They're called hybrids, and they're all the rage. You still have to fill up at the pump, but a gallon of gas in a hybrid goes a long way.

High gas prices doubled the demand for hybrids at Bob Howard Honda.

The cars switch between battery and fuel as needed, giving the Honda Civic an average 47 miles per gallon and the hybrid Accord around 32 miles per gallon.

The search for savings at the pump could drive hybrid sales to even higher heights.

The hybrids run about $2,500 more than the traditional model."

[mranderson]

Gas is starting to go down. $2.06 a gallon is still WAY to high. It should be about .75 lower. Either that or raise everyone's salary to compensate for the rise in price.

[Midtowner]

I dunno.. it really doesn't matter that much to me. I live 1.5 miles from my job. The gas prices aren't a strain on my budget at all. I would be in favor of the government increasing the deduction per mile for operating a vehicle though.

As far as average salaries go, they're about the laggingest indicator of inflation that there is. The gradual rise in salaries will come as inflation continues to occur.

[windowphobe]

You'd have to buy an awful lot of gas to make up for that $2500 price differential.

And I figure, my little blandmobile (or so it appears) is paid for and drinks a gallon every 25 or 26 miles, which isn't too shabby by contemporary standards.

[Keith]

I guess I will never understand why gas prices keep fluctuating . Yesterday I paid $1.99 a gallon at 7-11 at SW.44 & Blackwelder. I drove by their today, and not only did they drop down to $1.97 a gallon, so did their competition across the street.

[Midtowner]

It's the free market for the pennies, it's the price fixing for the dollars.

[Ms.Relaxationstation]

Get a bike! ( Ride it to McDonald's and eat a supersize fry )

[Patrick]

It's the free market for the pennies, it's the price fixing for the dollars.

AKA Price Gouging.

[Midtowner]

AKA Price Gouging.

Tomatoe, tomato..

[Patrick]

At this point in the game, I doubt gasoline will reach $4 a gallon anytime soon. Seems like prices are retreating slowly.

[Midtowner]

At this point in the game, I doubt gasoline will reach $4 a gallon anytime soon. Seems like prices are retreating slowly.

I think we all once thought the same about $2.00/gallon. The oil companies have done research that tells them that consumption won't change much until that point, so my guess is that they'll get the price up there somehow.

[ErnieBall]

Gasoline prices are high for a number of reasons, primary among them the fact that we do not have the refining capacity in the United States to meet the high demand. The last time a refinery was built was in the late '70s. Some oil companies are now trying to use the high gasoline prices to extort the government (is it really extortion if the party running the government is willing and ready?) into relaxing environmental regulations to make it cheaper to operate refineries. No loosening of environmental standards equals no new refineries equals continued high gasoline prices. This is why Bush has proposed that very strange and almost laughable plan to turn old military bases into refineries. My suggestion is that we work to reduce the underlying cause of this problem, increased demand for gasoline, rather than using the band-aid of new refineries to get short-term relief, especially if it means turning back the clock on environmental regulation. New refining capacity is certainly not a long-term energy policy that will produce positive results.

[mranderson]

My dad is an oil investor as well as real estate and stock market investor. He has leases worlwide. Obviously, when the price of oil rises, so does his income. So, it is a double edge sword. He has to pay just like the rest of us.

He said not long ago that it was not fair for him to make a lot of money with the rising price of gasoline when the working stiff had to buy smaller cars and/or have less spending money.

Moral is. There is some sympathy from the oil industry. Not a lot, but some. Either way, and dad agrees... It is gouging. Not a symantic term, gouging pure and simple.

[Midtowner]

My dad is an oil investor as well as real estate and stock market investor. He has leases worlwide. Obviously, when the price of oil rises, so does his income. So, it is a double edge sword. He has to pay just like the rest of us.

He said not long ago that it was not fair for him to make a lot of money with the rising price of gasoline when the working stiff had to buy smaller cars and/or have less spending money.

Moral is. There is some sympathy from the oil industry. Not a lot, but some. Either way, and dad agrees... It is gouging. Not a symantic term, gouging pure and simple.

Sympathy, but the price rises?

That sounds pretty hollow to me. It kind of reminds me of the good 'ol days with the robber barons and such.

Where are the muck rakers when you need them?