Monday, December 8, 2008
Kotz The Upside of a Collapsing Economy? The Return of $1 Gas!
Posted by Pete Kotz on Mon, Dec 8, 2008 at 5:15 AM
Since July, the price of oil has fallen 72 percent. Just last week it dropped by 25 percent alone. In the past, such declines were often reversed by mysterious problems in the old industry. Bad weather strikes somewhere between Louisiana and Texas, or the industry issues vague claims about refinery woes and--presto!--prices begin to soar faster than a Yankees bid for a middling free agent pitcher.
But the $4-a-gallon era had the unintended consequence of forcing drivers to cut back on consumption. And Big Oil can't create another artificial crisis when no one has the money to pay for it. Which has led to a fool-proof defense for being gouged at the pump! We're broke!
While $1 a gallon might be too much to ask, some believe parts of the Midwest may be seeing prices in the $1.25 range soon. And given that U.S. layoffs numbered 500,000 last month--the highest figure in three decades--prices shouldn't be reversing course anytime soon.
So revel in your poverty, dear reader! The man with no money cannot be gouged!
Comments (3)
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Yeah, pretty funny. Where are all those "drill here drill now pay lesss" idiots now, huh? The price of oil has dropped substantially and we haven't drilled one new drop.
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$4 gas was a great incentive in moving towards alternative fuels, more efficient cars, energy conservation, alternate transportation, etc. The trick is to keep that momentum going with cheap gas readily available. Has there been a permanent attitude change, or will the concern for being held hostage to oil drop with the price at the pump?
I heard on NPR today that in the past month, the sales of SUVs rose and sales of small cars dropped.
I heard on NPR today that in the past month, the sales of SUVs rose and sales of small cars dropped.
Yes, I read that a couple of weeks ago. I'm definitely seeing more Hummers on the road now. As I wrote after Thanksgiving, this is a delightful wave of the middle finger to OPEC (fiercely scrambling for some positive PR, as that ridiculous piece on 60 Minutes Sunday night proves). But the American people are like children.
I never understood these so-called "patriotic Americans" running around Green Hills in their shiny Hummers at 8 mpg clamoring to "nuke the ragheads" (yes, I really saw that on the back of a Hummer once, though in Florida, not here.) If you really wanted to send a message you'd stop buying their oil, then sit back and watch the inevitable economic collapse.
