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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (8045)	7/5/2008 12:06:04 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 24232

Dealing with Gasoline Prices Dale Allen Pfeiffer, Mountain Sentinel Why prices are rising, what isn't being done about it, and what it means for you --- What is going on? Oil prices surge to $100 per barrel, $120, $130, with no end in sight. And analysts are now talking about $200 per barrel by the end of summer. Gasoline prices have reached $4 per gallon in the US. And now they are saying we may see $6 per gallon by summer's end. Some analysts are saying gasoline prices will eventually reach $12 to $15 per gallon. What is going on? Is this peak oil with a vengeance? Yes and no. There are three reasons why oil prices are skyrocketing, and peak oil is only indirectly involved. The peak oil gene is out of the bottle, at least so far as investors are concerned. They only have a partial understanding of peak oil, but it is enough for market speculation to drive prices out of sight. Oil production has not peaked. It is constrained and it can no longer keep up with growing world demand, but it has not peaked yet, so far as we can tell. World oil production is approaching peak. It is no longer increasing as it once did. What is perhaps more important, there is no more spare capacity left in the system. ... What are We to Do? Whether this current period of oil speculation ends in a price crash or not, eventually declining oil production will kick in, and it will drive prices toward the high end of the above tables. At some point you will be faced with the choice: do I eat today or put gas in my car? Here is my suggestion: sell all of your vehicles. Buy a subcompact, along with one or two motor scooters, and bicycles for everyone in your family. Use the motor scooters and the bicycles for most of your commuting. Use the subcompact only when your family is traveling long distance, or when you need to transport something. Beyond this, we must push for the development of a real mass transportation system. (8 June 2008) mountainsentinel.com