Here's a quick poll question for you guys. Would you like the price to stay between $2.50 - $3.00 (this is like Ohio/new Jersey price ranges, I guess Swish and Dmast and in general just add 50-100 cents from your current average) with the guarantee that it'll stay that way until March 2010 or would you rather see this price go down, maybe even as low as the $1.20 but with no security whatsoever that it'lll be back at 5.00 in the next few months.
Are you suggesting the governement set the price at $2.50 - $3.00. I think the oil companies would snap that up in a heart beat. That would lock in massive profits for them.
I say let market forces rule. But I also think oil should not be a tradable commodity. Speculation on oil is part of what caused the price to jump like it did.
you mean the blown up prices up until now were real? I admit I don't know much about this nor have I looked but I am sure whoever it is that sets the prices had it in thier power (wether it be government or competitively) to offer this price all through. And whats more - they don't' even need to bring it down this low. They can keep it at $4.00 and still gain high profits. Afterall, who actually stopped driving or did anything to compensate for the high prices? I am sure all people did was complain, because at most the difference between $1 and $4 for an average american driving 12000 miles/ year at 20mpg is roughly $150 dollars more. The companies could stop the price at $2.50 or $3.00 right now - most people would be happy with the $50-75 they are 'saving' per month over the $4 price and live happily ever after.
They are going to increase the price again for sure, they have to. Where's the capital to switch from oil based autos to alternate fuel come from? If indeed we are seeing the last decade or so of oil dominance, they will make the most of it.
That's all I can gather from just thinking about it. Is there anything that I have missed? I would much rather see the price stagnate at $3 for the coming few years than have what we had in the last few, going from $1 to $5.. Isn't that too much of a fluctuation for an average fixed income lifestyle?
I have to disagree with your point that nobody stopped driving. Well they didn't stop driving, but many changed their driving habits, and lots of concessions were being made to the rising cost of gas. My company started more car pools from some areas. There are now two reserved parking spots for people who car pool.
Many cancelled vacations, or curtailed driving. In bigger cities more poeple started using public transportation, and/or bicycles.
GM sped up production on the Volt, their electric car, and other electric cars are in the works.
These are all signs that if the oil companies didn't start taking steps to reduce the cost of gas, ther were going to price themselves out of business.