I hate to do the whole "I heard from a guy, who heard from a guy" crap...but here it goes... my coworker was told by a long time friend of about 26 years who is a higher up of some sorts with an oil company that the price of oil and gas is being kept artificially low until the gulf of mexico spill is contained (presumably for public relations), and that once it is contained gas prices are gonna shoot up through the roof to 10 bucks plus a gallon in a manner of weeks. does this sound right to any of y'all?
The price of gas is out of step with the price of oil at this time. That's a bit odd since speculators should be bidding it up with what is happening in the gulf right now.
Makes no sense to me. That well has no effect on current production, and little if any on futures. Pump price will go up as it always has, but not as a result of this blow out.
If this shuts down gulf state refineries (imho our cost "will necessarily skyrocket" along with the other crippling energy "adjustments" promised by the liberal in charge).
Again, no sense. How could it possibly shut down refineries? This is not disruptive of ship traffic, nor causing a storm surge to flood things out. Tin foil OUT, thinking IN. And let's hope zero is not so stupid as to create more debt for cleanup.
I read that gulf state refineries could be shut down. I don't know enough about the mechanics of their operations to say whether this is true or not. Maybe environmental issues (air quality, etc.)? BUT, if it is true then the price of gas (not oil) should be sky high right now since the futures market and speculators generally jump ahead of what they think is going to happen. Right now we're seeing gas prices fall in spite of what is happening in the gulf and in spite of summer traffic / 4th of July, etc. I find that odd and I do believe that these markets are subject to manipulation. I hope there are logical factors at play, but something doesn't smell right.
I read the FedGov pulled the permits of a bunch of Texas refineries - oil and chemical- to make them follow the stricter Federal rules instead of Texas' laxer rules. THAT could bump prices up a bit. If the FedGov skyrockets gas prices 400% to $10 a gallon - most traffic will STOP. Truckers will be grounded, stores will have bare shelves, power plants will shut down and folks will be inthe dark without power or water..... Basically, the whole TEOTWAWKI scenario. Surely The Illegal Kenyan isn't THAT suicidal....... Remember the old scenes in the Frankenstein movies where the irate villagers march on the castle with torches and pitchforks....? The latterday version is the nation's capitol, and the villagers have guns and ropes........
I agree with Ghrit, but there could be adverse effects like tightening restrictions that may affect gas price in the future. $10 a gallon.... I don't think so. Last time it hit nearly $4 in some areas, it was a national crisis with daily debate. The current administration knows that and an election is coming up. I don't see $10/ gallon as possibility.
It is magical how the price of gas drops or stays low near election time. I think a lesson was learned last time the price of gas went up- things were comming to a halt and quickly. Then the price miraculously dropped to an easier level for things to normalize. Heck that was only two years ago...
I don't think it would be that bad. Europe was running at about those prices 2 years ago. You'd have the start of hyperinflation and some real hard times, and things would slow down but still run - just much more expensively.
Sure it would be bad. After Katrina,gas went way up - things got tight. Two years ago, that One-Two punch of hurricane's shut down the Gulf rigs and refineries. Gas stations had NO gas for a week, then it was just trickling in, all over the Southeast. They were trucking it done from way up north. Prices got to $5 a gallon in some stations, with limits on buying. I had enough stocked to get me by, riding my bike. A lot of truckers lost their jobs - profit margins too tight to allow that kind of fuel prices. Now - DOUBLE those prices and make it permanent! THAT will be a true SHTF situation in anybody's book. We'd find ways to 'get by' but it would hurt.
funny thing about our selective media, people (obviously outside of the affected areas) still to this day look at me like I am off my rocker if I mention that because they never heard a single word about it ever happening.
Hehehe.... I am beginning to think maybe my sister should not have given up her two horses...... She had enough pasture where she lived then to provide for them year round, adding some hay and oats for variety. Had she gotten a small cart or wagon, she'd have been set for local travel if gas got silly/stupid again. Well, if folks stop driving the highways, I could risk riding my mountain bike to work. Only eight miles. Right now, it would be certain death with the crazy drivers out there. SOME aspects of SHTF might be a blessing in disguise. Local"Farmer's Markets" could make a bigger comeback - closest big one is up in Thomasville, Ga - about 60 miles. But just south of town here we have the permanent "Flea Market" with booths, tables and buildings - lots of local produce gets sold there. That could prove invaluable for folks who don't garden. It's still a fifteen mile ride/drive for me though. I expect each side of town would soon have one though. A bunch of us "Rednecks" out west of town here already trade and deal among ourselves.
The Euroweenies that work don't drive near as much as people in the USA, unless you live in Manhattan or Chicago or somewhere like that most people must drive more than a gallons worth of gas every day to get to work. If gas got up to $10 I would be forced to buy a scooter or motorcycle for most driving and take the bus whenever possible assuming it didn't cost $10 for a bus ticket. The scary thing about gas prices going up is not only do you have to worry about the cost of gas but you also have to worry everything else inflating in cost.
My point is that this alone wouldn't bring on TEOTWAWKI. People would just have to adjust as you said and do other things. Right now, we're burning a tankful / week just taking the kids to school. We could fix that with a carpool. I love the American prosperity we have. I love powersports, my truck, the freedom to drive anywhere for just a few bucks. Fact is, it is all unsustainable. It's built on the consumption of HUGE amounts of energy. And that energy isn't getting any cheaper no matter what we try. (See peak oil thread). But I guess we have enough going on in other ways right now to cause a major calamity. Aw heck - maybe it might precipitate TEOTWAWKI after all. But it would be a confluence of many things that finally did us in.
