Ron Schenone

Gas To Hit $5 A Gal. In 2 Weeks?

Posted by on Jun 6, 2008 | 9 Comments

Now that the speculators have a barrel of oil at $138+, the consensus  among the gas analysts is that gas will be $5 a gallon in about two weeks or so. At $150 a barrel that would be about $5.50 a gallon. Some areas in California were shown on NBC news this evening,  showing gas stations raising unleaded prices to $4.49 a gallon.

One word: YIPPEE ! :-(

Source.

Source.

Comments welcome.

  • http://wp3.lockergnome.com/nexus/theoracle/ the oracle

    It doesn’t have to be that way. From a government site -fueleconomy.gov – I obtained the fact that only 55% of our oil is imported. The domestic supply is available at about $65 / barrel delivered to the refinery, so in truth, if the large oil companies were the good guys they try to portray, a gallon of gas could cost under $3 / gallon right now – if they weren’t so greedy. (and that includes a tidy profit, just not of the windfall variety)

    As Marlon Brando said to his underling in the 1980 movie about this called ‘The Formula’ “You don’t get it! WE are the Arabs! – meaning that the domestic oil producers were the greedy bastards, yet were letting the blame fall on the Arabs.

  • Ryan

    Here in Indiana, the price spread is now:

    Gas: $4 a gallon
    E-85: $2.89 a gallon

    I fill up on E-85, so I really could care less what the people that drive gas only “guzzlers” have to pay, I think I’m pretty covered, when they’re paying $5 a gallon, I might be paying $3.

  • leftystrat

    If you want to find out the truth, follow the money.

    Exxon/Mobil recently posted their fourth RECORD profit quarter in a row.

    You can blame speculators til you turn purple. The gas station isn’t making more money, the consumers are not paying less money, the truckers are not getting more to haul the product… who is?

    Every time I get gas, I watch the pump stop automatically at $75. If you had told me this last year, I’d have laughed. We are sheep, participating in our own fleecing.

    -lefty
    ThermionicEmissions

  • http://wp3.lockergnome.com/ Chris Pirillo

    Sources?

  • DougCuk

    Think yourself lucky here in the UK we are already paying the equivalent of $8.36 per US gallon at current exchange rates.

    Tricky calculation too – seeing as we now price our fuel in pence per litre – plus your gallon is smaller than ours (3.785 liters as opposed to 4.546 litres) – plus the dollar pound conversion rate.

  • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

    Thanks everyone for your comments and for sharing your thoughts. Source added as well.

    It was an analyst on NBC tv news that made the $150 a barrel = $5.50 a gal. gas. :-(

  • Ryan

    I should probably add that the conversion to let you run ethanol, gas, or any blend ratio you choose, costs about $200, which might be a bargain if you want to save $1 a gallon vs gas now, and probably more in the future, failing that, I’ve heard (HEARD) of people running 50% gas 50% E-85 with no obvious ill effects, I’m not making any suggestions with that, I’m just stating what I’ve heard.

  • http://NA Kelly

    I live in Oklahoma, on the Osage Indian Reservation, and I am seeing new rigs going up every day, and new wells as they hit oil. Oil companies are reporting record profits, the U.S. Government is still giving them HUGE subsidies, and we, the people, are being lied to and scr&wd!

  • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

    Thanks for the additional information.