Will we ever see gas below $2 again?
April 18th, 2006 | by mbhunter |This is my gut feeling. I’ve made this prediction to a few people. I don’t think we’ll see gas below $2 again, let alone $1.
Here are a few reasons why:
- Our dollars are being inflated away. This puts upward pressure on useful commodities, including oil.
- China is getting thirsty for oil. All of those bicyclists want cars now that they’re tasting the good life! Plus, they have all of those dollars of ours, which are becoming less valuable every day, so they buy oil with it — trade something of declining value for something of increasing value.
- We’re going to run out of oil sooner rather than later. Some estimates place worldwide peak oil production as close as a few years away. After this, supply declines, which means that price goes ballistic in the face of increasing or even steady demand.
- Summer isn’t here yet. Prices usually go up, not down, in the summer.
- Hurricane season isn’t here yet. OK, Katrina caused a big jump at the tail end of the summer. But there haven’t been any hurricanes yet this year!
- We have a tendency for getting into conflicts with the big oil producing countries. ‘Nuff said about that one.
$3 gas might change a few habits, but what about $4 gas? It’s not out of the question. That’s an extra $100/month for us if we don’t change our driving habits. That’s a big chunk.
Or maybe I’m being alarmist. Prove me wrong. Why should gas dip below $2 again?
10 Responses to “Will we ever see gas below $2 again?”
By Debt Hater on Apr 18, 2006 | Reply
Oh, gas will never dip below $2 again, even if it could (because of supply or decreased demand or whatever). Oil companies know we’ll pay it and we’ve been conditioned to expect it. If gas dropped back to a dollar something, people might go bananas! I’d buy gallons of it and just keep in the kitchen. That’s insane!
By Starfevre on Apr 19, 2006 | Reply
I have never ever been so happy that I drive less than 6,000 miles per year than nowadays. What an insane world that the last point you have is even on there.
By jim rainey on Apr 20, 2006 | Reply
if people would just remember one thing,the price of gas would go way down.DON’T BUY GAS FROM A NAME BRAND GAS STATION.when you buy their gas you’re just playing into their hands.the big oil companies are the ones that are setting the astronomical prices.when you buy from an independent dealer you’re not putting any money in the big companies pocket.if everybody did this the price of gas would go way down again.it’i also been proven the gas at an independent dealer is the same quality as the big guys.gas is gas no matter where you buy it.
By dream_n_big on Apr 26, 2006 | Reply
I don’t think that we’ll ever see gas under $2.00 again. It sucks because my dad and I both drive 60 miles a day for work and/or school. So that means I am spending around $200 a month on REGULAR.
By Joe on Jul 24, 2008 | Reply
Now that its 2008, we are just wishing for $3 gas again!
By mbhunter on Jul 28, 2008 | Reply
Hah! No kidding!
By Life'sAB.... on Oct 31, 2008 | Reply
Y’all need to go to Texas.
By Tom on Nov 13, 2008 | Reply
Folks now that it’s November 2008, just thought you’d all like to know. GAS IS ONCE AGAIN BELOW $2 PER GALLON. The lesson is that those who think they know the future are more than like WRONG!!!!!!