$5 Gas? Do Not Panic!

[Thunder]

http://www.koco.com/money/30225022/detail.html

*yawnz* Whatever happens, it wouldn't..shouldn't affect Oklahoma. At least not much. We'll still remain the cheapest state. In fact, with Thunder's official forecast, the gas prices will not rise that much this year. Will it rise? Yes, but nowhere near $4. At most, an average of $3.50 across the state, but as usual, what goes up must come down.

Just look at it this way, it will make Oklahoma so sexy and attractive. ;-)

[ou48A]

Or, oil could crash due to price destruction demand all caused by economy that becomes so weak that it can’t support high prices.
Since WWIII 9 of our past 10 economic recessions were preceded by rising crude oil prices. crude oil prices have been trending upward for months.
In most situations there seems to be a lag time of about 9 months between price spikes and visible economic pain VIA large lay offs.

Oklahoma is a major producer of natural gas and NG prices are at near unprofitable levels.
Oklahoma could be slammed very hard, yet again by energy price swings?

[ou48A]

FYI.... the United States paid about $125 billion more for oil imports than it did in 2010

[OKCisOK4me]

Wait a second, WWIII came before $5 gas? What thermonuclear explosion did I miss? ;-)

[Just the facts]

Oklahomans are 100% reliant on gasoline. A price spike to $5/gal would make huge profits for oil companies but their employees wouldn't be able to afford to drive to work. This is why the state should be building an extensive state-wide rail transit system so we can keep the economic lights on.

[ou48A]

Wait a second, WWIII came before $5 gas? What thermonuclear explosion did I miss? ;-)

Sorry It’ now edited and says WWII

[ou48A]

Oklahomans are 100% reliant on gasoline. A price spike to $5/gal would make huge profits for oil companies but their employees wouldn't be able to afford to drive to work. This is why the state should be building an extensive state-wide rail transit system so we can keep the economic lights on.

I don’t totally disagree with idea of expanded train service, but even the very best system, that will never be built, would ever carry even a very small fraction of the state’s daily traffic.

We need other solutions as well, such as natural gas for transportation. Right now in some places NG for vehicles is selling for well under a dollar per gallon equivalent (to gasoline).

I believe we will need all the energy that is economical, but for now NG is the only scalable wide spread alternative to gasoline and diesel that won’t break the bank.

[Thunder]

I'm gonna have to agree. I don't think OKC will have trains (streetcars) and subway.

[ou48A]

http://oilprice.com/Energy/Natural-G...In-Flames.html


Natural Gas prices are now 15% of the cost of oil on an equivalent BTU basis.
So if you own one of the few natural gas cars around this means you are buying fuel at 60 cents a gallon.

So why aren’t we all driving natural gas powered cars by now? You can blame the heavy hand of government regulation. Energy is one of the most heavily regulated industries in the country. To use even a fraction of the gas we are producing, massive deregulation of the transportation, distribution, and sale of natural gas is required.
Cheniere Energy (LNG),,,,,,is gearing up to liquefy natural gas for export from the US to Asia.

[Roadhawg]

I would be using it but the conversion cost doesn't make it worthwhile for me.

[ou48A]

NG conversion makes more sense for those who drive a lot but I suspect that conversion cost and factory cost will be lower in the future. Current Tax breaks along with others that are under consideration in the NG ACT would lower the up front cost for consumers.

[OKCisOK4me]

Sorry It’ now edited and says WWII

;-) I was gonna say!

[Just the facts]

Natural Gas is cheap because no one is using it. If cats became the fuel of choice then cats would start costing $4/gallon. The only way competitiion is going to work in the fuel industry is if a single car could burn fuel from multiple sources at the flick of a switch. As for rail transit - will everyone ride it when gas goes to $5/gallon? Nope, some people will continue to drive at $20/gallon but in modern day Oklahoma no one has a choice, other than drive or stay home; which is not much of a choice. We are on borrowed time and the writing is on the wall.

[ou48A]

Natural Gas is cheap because no one is using it. If cats became the fuel of choice then cats would start costing $4/gallon. The only way competitiion is going to work in the fuel industry is if a single car could burn fuel from multiple sources at the flick of a switch. As for rail transit - will everyone ride it when gas goes to $5/gallon? Nope, some people will continue to drive at $20/gallon but in modern day Oklahoma no one has a choice, other than drive or stay home; which is not much of a choice. We are on borrowed time and the writing is on the wall.

No!....... Natural gas is cheap because of a gigantic supply glut that is continuing to grow and could be easily expanded to meet the needs for decades to come.

Most new electrical power generation has been or will be NG. There are new chemical plants being built that will use NG as a feed stock due to cheap prices and the supply glut. These are on average high wage jobs.

We are to spread out in the OKC area for any train system to ever make much of a dent in fuel consumption in our life time. But to relive congestion I would eventually like to see a commuter rail system between Edmond & OU/Norman and from Tinker to down town OKC on to OKC airport.

[ou48A]

The only way competitiion is going to work in the fuel industry is if a single car could burn fuel from multiple sources at the flick of a switch.

They already exist and are used around the world in some places with great effectiveness.

I have driven many miles in vehicles that were power by propane and at the flip of switch the driver could burn gasoline.
A very similar system is used when NG is used to power vehicles.

http://en.wikipedia.org/wiki/Bi-fuel_vehicle

[Just the facts]

We are to spread out in the OKC area for any train system to ever make much of a dent in fuel consumption in our life time.

For the collective whole maybe, but not for an individual. Like I said, some people will go MadMax before giving up their V8. While working in Philly I eliminated my use of gasoline by 100%. When I bought my pick-up last year I checked out Ford with their LP option. By the time I paid for the option it made LP unviable. I would be interested in CNG, even if I only had a 50 mile range on a single re-fill.

[Snowman]

Oklahomans are 100% reliant on gasoline. A price spike to $5/gal would make huge profits for oil companies but their employees wouldn't be able to afford to drive to work. This is why the state should be building an extensive state-wide rail transit system so we can keep the economic lights on.

For the collective whole maybe, but not for an individual.

Cities have been developing away from railroads for at least seventy years (with a few exceptions), even if a statewide network could be set up (which would take years), we do not have the housing options in places to make it an easy transition for the majority of the population. Unless their are flat out shortages then simpler solutions like car pooling, office workers working remotely from home, alternative work schedules and less intercity traveling are more likely to be the next steps people do. From where prices have been in the past that is only like a 10% to 15% drop in total miles (less if they moved to a small car from a truck or SUV), it will be enough to affect peoples choices in new vehicles but still probably not be enough for many to choose an urban lifestyle that were not already interested in one.

[sacolton]

My next car will definitely be NG. It's just a matter of time before gas skyrockets past $5. I want to be prepared.

[HewenttoJared]

Looking at EV cost projections for 2017 and the tumbling costs of producing electricity by almost any means I'm tempted to say out next car will be fully electric. Investing in an NG car when carbon taxes are going up all over the world seems like playing with fire.

[Bill Robertson]

I'll worry when it actually happens. Seems like ever since Katrina knocked offshore gulf production offline for a while the predictions of 5 to 6 dollar a gallon gas pop up at least one a year. Hasn't happened yet. In fact if you noticed, gas prices went down all three holiday weekends last summer supposedly due to lower than usual demand.

[Oh GAWD the Smell!]

I'll worry when it actually happens. Seems like ever since Katrina knocked offshore gulf production offline for a while the predictions of 5 to 6 dollar a gallon gas pop up at least one a year. Hasn't happened yet. In fact if you noticed, gas prices went down all three holiday weekends last summer supposedly due to lower than usual demand.

It's also an election year. Gas prices always take a dive around then.