Gas was $1.83 today, my theory...

[flskevin]

In 1999 gas was about $1.40, in 2000 $1.80. Today I bought gas for $1.83. Oil was below $64 a barrel. When all this wild fluctuation of oil & gas prices started oil was $80 a barrel and a gallon of gas was around $2.20.

The last 15 years the hey day of the big SUV that burned gas at 10mpg was in full swing when the price per barrel steadily rose to over $160 a barrel and a gallon broke the $4.00 mark. That seemed to be the national squeal point.

Filling up your tank could cost more that $120.

But like any other challenge Americans began to cut back on consumption. Hybrids that were largely unnoticed were flying off the showroom floors and on back order.

Like me I bet many members of this forum began riding their sporty to and from work on a daily basis. People were thinking about driving random errand trips and combining them to conserve.

But that's how it's done. One person at a time. If one uses less gas that doesn't make that much of a difference, but if millions use a little less that adds up.

If everyone in American dropped just one ounce of gas in a tank it will add up to millions of gallons of gas saved. And that's what we did as a nation. The demand dropped so much that the price of gas was in a free fall.

When demand drops and conservation is the goal the consumers are the ones that control the market and in turn controls the price.

The real question is now that gas prices have plummeted lower than they have been in about 10 years will Americans continue this path or fall back on wasteful habits.

Hopefully they will continue on the path to independence and realize just how fast things can turn for the worst.

So my fellow XLF'ers keep riding those sportys when you can and enjoy those savings.

[srrice40]

If that is so true then why am I paying 3.09 a gallon ? that's the price here in Alaska and we are the ones with the Oil!

[flskevin]

Originally Posted by srrice40

If that is so true then why am I paying 3.09 a gallon ? that's the price here in Alaska and we are the ones with the Oil!

It's a theory...

Time to tap in to the pipeline and help yourself.

[mr_sportster]

Originally Posted by srrice40

If that is so true then why am I paying 3.09 a gallon ? that's the price here in Alaska and we are the ones with the Oil!

Is that because you all get that check back from Sarah every year sharing in the pipeline revenue?

[Weo]

+1 on your thoughts flskevin.

Capitalism's main control is the consumer. The problem, is that often I see more people complaining then actually doing anything completely within their power.

Our gas guzzling SUV mentality started taking shape about 20 years after our last oil crisis. Remember all the 4 cylinders in the 80's and gas guzzler taxes on sports cars? Maybe generational? I have a feeling that our children will grow up and forget the issues we are having today, just as we often forget the issues our parents worked through.

[Rehit]

the current stock market debacle is what has driven the price of oil down.
the buying and selling of gas futures is what controls the price.
since most of the giant banks and hedge funds are trying just to survive they have no money to play in the gas futures market.
this is what caused the price of a barrel of oil to plummet.

[Weo]

Originally Posted by Rehit

the current stock market debacle is what has driven the price of oil down.
the buying and selling of gas futures is what controls the price.
since most of the giant banks and hedge funds are trying just to survive they have no money to play in the gas futures market.
this is what caused the price of a barrel of oil to plummet.

I believe this is heavily related. However, there was talk of an oil futures bubble during the time of rapid price increases over the last couple months. you have to remember, steady increase is normal, but we were subject to a good 100% increase in price over a month or two. Whether or not the stock market tumbled, the bubble had to burst sooner or later.

[darett]

the price of gas always goes down during an election. It will rise again soon

[shameless]

Well I think I can speak or everyone when I say,

I don't care why it's going down. I'm just glad it is.


...but I do agree with Kevin on one thing, we need to remember these conservative habits we've learned lately.

[PuddlePirate]

It's funny how now that the price has gone down, nobody is talking about alternate energy sources nearly as much. I personally think the oil cartels control the prices, up and down, partially based on the public's demand for the alternate energy. If we as a public are ticked off enough to really demand it and we do find alternate sources, oil companies don't make nearly as much money.

Price of oil goes down, people are happy about gas prices, people don't remember what it was like to pay $4.50/gal, people don't care as much about other energy sources. Maybe I'm nuts, but it makes sense to me.