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5 Dollar Gas? Get Ready To Pay An Arm And A Leg For Gasoline

One of the quickest ways to bring down the U.S. economy would be to dramatically increase the price of oil. Oil is the lifeblood of our economic system. Without it, our entire economy would come to a grinding halt. Almost every type of economic activity in this country depends on oil, and even a small rise in the price of oil can have a dramatic impact on economic growth.  That is why so many economists are incredibly alarmed about what is happening in the Middle East right now.  The revolution in Libya caused the price of WTI crude to soar more than 7 dollars on Tuesday alone.  It closed at $93.57 on Tuesday and Brent crude actually hit $108.57 a barrel before settling back to $105.78 at the end of the day.  Some analysts are warning that we could even see 5 dollar gas in the United States by the end of the year if rioting spreads to other oil producing nations such as Saudi Arabia.  With the Middle East in such a state of chaos right now it is hard to know exactly what is going to happen, but almost everyone agrees that if oil prices continue to rise at a rapid pace over the next several months it is going to have a devastating impact on economic growth all over the globe.

Right now the eyes of the world are on Libya.  Libya is the 17th largest oil producer on the globe and it has the biggest proven oil reserves on the continent of Africa.

Libya only produces 2 percent of the oil in the world, but with global supplies so tight at the moment even a minor production disruption can have a dramatic impact on the price of oil.

Before this crisis, Libya was producing approximately 1.6 million barrels of oil per day.  Now the rest of the world is wondering what may happen if revolution spreads to other major oil producing nations such as Kuwait (2.5 million barrels of oil per day) or Saudi Arabia.

Saudi Arabia produces 8.4 million barrels of oil a day.  It produces more oil than anyone else in OPEC.

If revolution strikes in Saudi Arabia and a major production disruption happens it could be catastrophic for the global economy.

David Rosenberg, the chief economist at Gluskin Sheff & Associates, is warning that if there is major civil unrest in Saudi Arabia we could end up seeing oil go up to $200 a barrel….

“If Libya can spark a $10-a-barrel response, imagine what a similar uprising in Saudi Arabia could unleash. Do the math: we’d be talking about $200 oil.”

200 dollar oil?

Don’t laugh – it could happen.

In fact, if it does happen the global economy would probably go into cardiac arrest.

The truth is that if the flow of oil from Saudi Arabia gets disrupted there is not enough spare capacity from the rest of the globe to make up for it.

Paul Horsnell, the head of oil research at Barclays Capital, recently said that the world does not currently have enough spare capacity to be able to guarantee that an oil “price shock” will not happen….

“The world has only 4.5m barrels-per-day (bpd) of spare capacity, which is not comfortable.”

Horsnell also said that even in the midst of potential supply problems, the global demand for oil continues to grow at a very robust pace….

“In just two years, the world has grown so fast as to consume additional volume equal to the output of Iraq and Kuwait combined.”

For now, Saudi officials are saying all the right things.  They say that there will be no revolution in Saudi Arabia and that there are not going to be any supply problems.

For example, Saudi Arabian Oil Minister Ali al-Naimi recently announced that the rest of the world should not worry because his country is definitely going to be able to make up for any shortage in the global supply of oil….

“What I would like you to convey to the market: right now there is absolutely no shortage of supply.”

But what happens if revolution comes to Saudi Arabia?

Suddenly the whole game would change.

But even with a peaceful Saudi Arabia the price of gasoline in the United States is already rising to alarming levels.

The average price of gasoline in the United States reached $3.14 a gallon last week.  This closely mirrors what happened back in 2008.  Three years ago at this time the average price of gasoline was right around $3.13 a gallon.

Let’s certainly hope that we don’t see a repeat of what happened to oil prices back in mid-2008.  The price of oil reached an all-time record of $147 a barrel and gas prices in the United States absolutely skyrocketed.

So how high will the price of gas in the U.S. go in 2011?

We haven’t even come close to 4 dollar gas yet, but a large number of analysts believe that it is coming this summer.

Is there even a possibility that we could see 5 dollar gas in America at some point in the next couple of years?

Well, there are some in the oil industry that are convinced that it could actually happen.  Just consider the following quotes….

Darin Newsom, senior analyst at energy tracker DTN….

“If this thing escalates and there’s a good chance that there’d be a shift in supplies, $5 gas isn’t out of the question.”

Peter Beutel, president of energy adviser Cameron Hanover….

“If you are looking at the disruption of movement and production in countries such as Saudi Arabia and the UAE, you’re easily talking $5 gas.”

John Hofmeister, the former president of Shell Oil, on his belief that we could see 5 dollar gas by 2012….

“I’m predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline prices.”

So why is everyone so concerned about gas prices?

Well, because it affects the price of almost everything else in the economy.

David Wyss, the chief economist at Standard & Poor’s, says that every extra dollar that is spent on gasoline is a dollar that will not be spent somewhere else….

“The money that you spend filling up your car is money you don’t have to spend at the shopping mall.”

Not only that, but when gasoline costs more it has a negative effect on economic growth.  Almost all economic activities involve the use of oil in one form or another.  When the price of oil starts getting really high it motivates people to start cutting back on many of those activities.

The truth is that our whole economic system is based on the ability to use massive amounts of very cheap oil.  Now that the price of oil is rapidly rising again, many economists are becoming very alarmed.

Nobuo Tanaka, the Executive Director of the International Energy Agency, recently told CNBC that his organization is extremely concerned about what high oil prices could do to the global economy….

“That is our concern, regardless of the margins of disruption, if the $100 per barrel of oil is continued in 2011, the burden of oil to the global economy is as bad as 2008.”

So what was so bad about 2008?  Well, the price of oil soared to $147 a barrel in mid-2008 and this was a huge factor in the financial collapse that happened a few months later.  Now oil prices are returning to levels that we have not seen since 2008….

So if the price of oil breaks the all-time record this year will we see another global financial crisis?

It is hard to say.  But what almost everyone agrees on is that it will not be good for the global economy at all.

In addition, a higher price for oil will also have a huge impact on the trade deficit.  Because oil prices were at such a high level back in 2008, oil imports actually made up almost 50 percent of the U.S. trade deficit that year.

In 2010, the U.S. trade deficit was just a whisker under $500 billion.  If the price of oil gets up to 140 or 150 dollars a barrel we could easily see the U.S. trade deficit explode to 700 or 800 billion dollars in 2011.

That would be really, really bad for the U.S. economy.

So where are oil prices going next?

Well, if you could predict that with 100 percent certainty you could make a whole lot of money.  Nobody knows for sure.

But almost everyone believes that the price of oil is going to go up.  In fact, a lot number of investors have been making some very large bets that the price of oil is going to go up very significantly this year.

Recently, large numbers of investors have been betting that the price of oil will rise to $125 a barrel by May.  Shockingly, some investors have even been betting that the price of oil will rise to $250 a barrel by next December.

Let us hope that the price of oil does not rise that rapidly, but as the past couple of months have demonstrated, the world is becoming a very unstable place.   Just about anything is possible at this point.

If the price of oil rises significantly above $100 a barrel and it stays there for an extended period of time, it is going to be absolutely devastating for the U.S. economy.

So what do you all think is going to happen to the price of oil in 2011?  Please feel free to leave a comment with your thoughts below….

  • impeachRonPaul

    This could derail the recovery for sure. With republicans taking over we know they prefer the oil companies over the working man. We are in trouble.

  • http://www.truthmovementamerica.com/ European American

    Looks like I’m going to have to take the P200E (Vespa) out of mothballs next month. And I live in the Pacific NW, i.e. rain country.

  • Jeff

    Only $5 a gallon for fuel? That’s cheap! Most other countries in the world pay far more than $5 already.

  • Davidm

    If a hundred kids get together in the street to protest in Saudi Arabia the world is going to freak out. Get ready for $200.00 a barrel oil. I personally don’t see how this can not happen. Saudi Arabia is totally surrounded by the riots. It also has more than it’s share of Shia Muslims. Oil Spikes and the market crashes. When Bernanke quits printing the party is over.

    My advice, buy Gold and black gold.

  • http://YAHOO RICHARD

    I DON’T SEE THE SAUDIS’ GOING THROUGH THE SAME THING AS THE REST OF THE MIDDLE EAST THEY HAVE TONS OF MONEY AND THERE PEOPLE CAN HAVE WHAT EVER THEY WANT. BUT WITH THE REST OF THE MIDDLE EAST AND QE2 I SEE REALLY BAD INFLATION COMING AND WE WILL CONTINUE TO STAY IN THIS SUPER RESSISSION. IF THAT’S WHAT YOU WANT TO CALL IT. BUT WE REALLY KNOW WHAT IT IS. ALL THE NUMBERS ARE RIGGED. IT IS WORSE THAN WHAT EVERYONE IS TELLING US. HANG ON IT’S GOING TO GET UGLY.

  • D rumsfeld

    70% of world oil is priced according to Brent. The WTI price is not that relivant. The uprisings in the Middle East will just worse as those who have ‘won’ democracy become dissolutioned with the outcome and revolt again.

    Anyone who believes that the Saudies can raise output to meet any disruption is smoking something strong. Much higher oil prices are coming. This is partly due to disruption but also due to the falling value of the US Dollar.

  • Maria

    The oil companies are a part of the world elite ruling class. Oil is their currency. Oil gives them control.

    The elite want oil at least $150 a barrel…$200 would be more to their liking. When that happens, most of the world’s developed nations will be on their knees…begging for a solution.

    China has their solution. They made an agreement with the world’s largest oil producer…Russia. How convenient. They will not suffer at the hands of the elite. China’s rise is a part of their plan. China does not have all of those problematic laws and taxes.

    The American “solution” will arise. Suddenly, those huge oil fields discovered back in the 1970’s here on U.S. soil will be the OPEC alternative. The oil elite will uncap their massive 40 year old secrets. It will not be cheap. U.S. oil is now owned by former U.S. corporations (now trans national…aka not beholden to anyone). The only thing they are loyal to is profit.

    OPEC is slowly dying. They will feel betrayed. What happened to all of those promises Kissinger made?

    The New World Order is about greed. The One World Government is about control. The New World currency is the tool that will make it happen.

  • Chris F

    The elite plan to have oil at $4 or $5 a gallon in the US by the end of this year and then by the end of next year, they will collapse the dollar. You’re being controlled people.

  • James

    .
    .
    @ impeachRonPaul
    February 23rd, 2011 at 4:54 am

    “This could derail the recovery for sure.”

    What have you been smoking? Recovery?

    Your messiah isn’t presiding over any “recovery”.

  • mondobeyondo

    $5.00/gallon for gas would devastate the U.S. economy. Unlike our bicycle riding and walking friends in Europe, Asia and South America, we in the U.S. – and especially in Western U.S. cities like Los Angeles, Phoenix, Dallas, Las Vegas, etc – are heavily dependent on private transportation to get around. Trucks and trains bring food to your local grocery store. Tractors and farm equipment harvest that food. Fords, Chevys and Kias (and Bentleys for you wealthy folk out there) take us to work, back home, to the local nightclub, theater, etc. Airplanes fly us out of town and into the rest of the world.

    And all of these run on….coal? Buzz – wrong answer!!!

    $5 a gallon…my God, life as we know it now would come to a screeching halt.

    Perhaps it’s time to invest in Schwinn stock. Maybe 10 speed bikes would be a good investment.

  • davidm

    Jeff

    taxes are the reason the rest of the world pays much more for a gallon of gas.

  • davidm

    The cost of oil is the reason the crash happened in 2008, another crash like that and we will be in a full-blown world-wide depression. there isn’t enough Zoloft in the universe to pick us up then.

    @impeachronpaul
    maybe you should give Jesus a chance- the door is open and all you need to do is show up. could get whatever is festering in you out of you.

  • The Beast

    Rest assure…Saudi Arabia WILL fall. That old and obsolete dynasty is so crippled, out of favor from its people, losing out friends, and has the potential of throne succession conflict at the highest probability. And guess what, King Abdullah is gravely ill. Its “crown prince” Prince Bandar suffers Alzheimer. The rests of Abdul Aziz’s sons are all old and tired. Now the second generation, grandsons of Abdul Aziz, are competing for the throne.
    You don’t fear for chaos in Saudi Arabia out of paranoia, you PREPARE for it to happen, because it WILL happen some time very soon. Mark my word.

  • Dan McDonald

    The bottom line is that oil prices are going up. We are seeing numerous phenomena interlinked that mean higher prices and extreme tensions in the global economy. The world’s leading central banks applied the same Keynesian remedies for recession. They produced money to spur a slow economy. They created inflation. The inflation especially hit the Middle East in the form of higher grain prices. Higher grain prices made life more horrible yet in nations with a lot of repression in their political system. That produced the breaking point, riots, and revolutions. The hoped for use of increasing money supply to lift the world out of recession, instead is simply creating inflation on commodities, deflation on things which people don’t buy when they buy pay a lot more for grain and petrol. People lose hope, governments try to pass along austerity measures, workers and teachers protest. Perhaps we need to go back to the beginnings in Constitutional money. When Congress fixed the amount of silver in an original silver dollar in the 1790’s they made it a capital offense to try to devalue the currency. That would get the FED’s attention. One silver lining, this may be the beginning of the death of Keynesianism.

  • germanguy

    In Germany you pay

    1.48€ for a liter of regular
    = 5.60€ a gallon.
    = 7.67$ a gallon.

  • William

    It is not that oil is so valuable, it is that the dollar is worth so much less. The Federal Reserve has made the US dollar worth less and less. Be sure to vote again for the idiots in the US Congress who refuse to recognize that the Federal Reserve is unconstitutional.

  • Matt

    The way to avoid an oil shortage is to tax the rich hard! Right Gary2 ?

  • Michael2

    Although I am against many of the criticisms of average Americans, I also know we are not blameless victims of circumstance. Many issues, in the myriad that we face are of our own creation. As such, in my opinion this is a case where I think we need to look in the mirror because $5.00 a gallon is just one several consequences to come because people are not paying enough attention to what governments and corporations are doing in far away places. The US, other governments and a handful of corporations overtly and tacitly in some cases, support many of the oppressive and exploitive regimes around the world. Oil is just one of the natural resources being monopolized by a handful people. Now people should better understand why some in the Middle East and other parts of the world are so desperate. And for the ones who still deny the true plight of our fellow humans in the “Other World” or Third World if will, don’t worry circumstances are now unfolding that will convince you what Thomas Jefferson said is true,

    “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” http://quotes.libertytree.ca/quote_blog/Thomas.Jefferson.Quote.CA94

    Paying five dollars a gallon could also remind us we should have listened to former U.S. President Jimmy Carter and others when they tried to usher in a new era fuel efficiency back in the 70’s and early 80s. Typical though for human nature we followed the path of least resistance and the illusion of the less expensive and continued to increase our reliance on oil.

    Maybe $5.00 a gallon will convince us that not everything we do is ok and sustainable. As well maybe many of us will rediscover the joys of bike riding and living healthier too. We have sprawling highways and miles of redundant roadways that could be curtailed with better planning using sustainability principles. In my humble opinion there definitely should be less tractor trailer traffic on the roads and more trains moving goods. It just makes better sense. The truckers could move into train industry so they can still make a living. And the earth and we humans would be the better for it.

    It seems though we are in hurry to leave the earth a war torn, toxic, resource depleted, post apocalyptic, shit hole. I still wonder who it was that told us we are top of the food chain, the creation of superior intelligence because they look more and more like a boldfaace liar.

  • roadrunner

    Like Davidm says, the oil companies hire for a few dinar, 100 kids in Saudi, the CIA did it in Tehran in 1953,they can do it again. Instant 6.00 per at the pump.

  • Europe

    Here in the west of europe we pay Euro 1.53 for a liter (converted: Euro 5,79, or $ 7,30 for a gallon).

    We have perfect maintained roads, and our government doesn’t have any debts because we pay taxes like these.

    Stop complaining and realize that you current oil burn rate and pricing cannot be held for long.

  • DC

    The Middle East seems to be going through its own 1848 revolutions (see http://en.wikipedia.org/wiki/Revolutions_of_1848). As I recall (without looking at the Wiki article), two European nations survived 1848 without revolution: Britain, because the PM went along with the crowd, and Imperial Russia, because they crushed it without mercy.

    Libya seems to be trying to follow the Russian model, but it won’t hold without the full cooperation of the military.

    It’s going to be an “interesting” year, in the Chinese curse sense of the term.

  • flubadub

    We have the capacity to meet our country’s demand for oil with domestic production but our lawmakers have conveniently empowered regulatory agencies to blame for prohibiting its use. Is there a possibility of spills or other drilling accidents? Sure. But what activity do we engage in on a similar scale that is carried on without some risk? We shouldn’t allow our fear of possible problems to paralyze our ability to provide one of the most critical ingredients to a healthy economy and American prosperity. Reasonable regulation to ensure that operations are carried out as safely as technology allows should be set and enforced but not to the extent that they purposely ban domestic production.

    Along with oil our continent has vast untapped supplies of natural gas. Internal combustion engines have been running on compressed natural gas for over sixty years. The technology is clean, cheap and available now. New and cleaner methods are being discovered to release the gas from shale such as the method used by GASFRAC that does not require the enormous amounts of water used in hydraulic fracturing.

    Working toward becoming self sufficient with regard to energy should become a national goal. The recent spike in oil prices triggered by turmoil in unstable societies should be motivation enough to finally do more than talk about energy independence.

  • http://endtimeinfo.com Doe

    Be comforted, I live in Europe and I already pay $7 for a gallon ($1.85 per liter)

  • Ricardo Montalban

    Folks– dont be swayed by the CONSTANT propaganda that oil is spiking due to crisis in middle east. That is a clever distraction– and we are supposed to get caught up in the idea of liberation, democracy (errr “mob rule”), freedom ,blah, blah… Remember, the FED has introduced a lot of new money in the equation that spells inflation– so prices rise–especially for commodities. So, almost $1400/gold and $30 silver BEFORE any crisis started should be a sign to us all. QE2 has a side effect…its econ 101.
    Now, the middle east is at a tipping point anyway– all it needed was a few loose cannons to throw it over the top and look how destabilized it is now. And of course, we are sold its ALL in the name of democracy– so we should be happy to pay our share for the freedoms of others.. Inflation as altruism– is this the twilight zone? No, actually I think it is Fantasy Island…

  • http://moneyedpoliticians.net Jack Lohman

    Ah, so the Gas Gods heard that America was recovering and THEY want to be assured of a major piece of it…

    Jack Lohman
    http://moneyedpoliticians.net

  • jox

    This is Spain. The price of gas is 3,56 $/gallon (applying the current rate of conversion dollar/euro).

  • roccman

    there was never a “recovery” – peak oil occurred in 2006 we were going to $5 gas (likely much higher) anyway.

    here’s your boogeyman

  • Anthony

    “The truth is that our whole economic system is based on the ability to use massive amounts of very cheap oil”

    That says it all, doesn’t it? How stupid are we that our entire economic system is based on a finite resource that WILL run out in the next 20-50 years. We are not prepared for that at all.

  • Stephen

    Using 1500 miles/month as an average at 20MPG, the difference between $3.15 and $5/gal is approx. $4.60/day. Americans already love gasoline so much that we turn corn into ethanol. Expect Americans to keep driving, and forgo the Starbucks, McDonalds and Saturday movie night. Maybe a few more people will walk, take the bus, ride a bike or carpool. $5 gas sounds pretty good to me. Buy oil company stocks and sit back.

  • Patriot One

    First off we have no recovery. All they said was that the recession ended. In my opinion the depression started in March or April 2009. I think history will show that a amature like me is closer to correct then the smartest people in the world.

    As I forecasted for 2011 gas will be above $4 per gallon and diesel will be above $5 per gallon. The difference is in 2008 we had no supply problems it was just speculation. But the speculators now know the economy can not handle $147 a barrel price point.

    Today the economy is having a hard time above $50 a barrel so I think we are already heading for a collapse.

    Please remember there is a huge difference between speculation and a real supply problem. The price is anyones gue$$ if we have a real supply problem.

  • Maria

    Oil industry worries Libya unrest could spread

    http://apnews.myway.com//article/20110222/D9LHFSU80.html

    WORRIED?! They are HOPEFUL!!! That headline is a farce! The markets are jittery, but everyone knows what this will do to oil prices and corporate profits…they are going through the roof. The fires are being fanned by the Elite-backed Muslim Brotherhood. A legitimate uprising by the Egyptian people has been co-opted by the Elite.

    Another example of psy-op news in the U.S.

    Wake up America!

  • RunVampRun

    Gauge Away …Gauge Away…
    Glad I bought a Honda Insight Hybrid about this time last year…very affordable car(I am not rich)that is getting me 45 miles to the gallon, and I still worry about my friends & neighbors who have to drive less efficient cars and some have to commute even further than I do. We are going to be in for another rough year, but hey the guys and gals on Wall Street collected some sweet bonuses this past January and are now speculating oil futures to there advantage!
    Gauge Away…Gauge Away!

  • Stephen

    My earlier post was deleted…didn’t like it?

    At 1500 miles/month, 20MPG, the difference between $3.15/gal and $5/gal is about $4.60/day. This will lead to bus riding, carpooling, bicycling, walking, and fewer meals at Starbucks, McDonalds and the rest. So buy oil stocks, sit back, and get healthier and richer.

  • Alice

    I already lost an arm and a leg the past couple of years, what are you saying to me???????…The Saudi King is giving his people 39 billion dollars cash to buy the peace, our King did the same thing, except he had borrow TRILLIONS of dollars to maintain the peace! ….When the Saudis run out of oil they may be able to resort to their credit,,,,,,,,we are using up our credit,,, with nothing left to save us when we can’t borrow anymore!… Boy, we are in big trouble, and they continue to borrow and spend our way to poverty!

  • DownWithLibs

    I agree with you Richard. I believe that the numbers regarding unemployment are rigged just like the price of PM’s. It has to be far higher then just the steady “9.whatever%” that they keep feeding us. Just part of holding the facade together, I guess.

  • VegasBob

    Ben ‘Bernokio’ Bernanke’s $2.2 trillion money-printing exercise, euphemistically called ‘quantitative easing’, has been a desperate bid to keep the US economy from imploding.

    This $2.2 trillion of Bernokio’s ‘hot’ counterfeit electronic dollars has been used by privileged investors to goose up stock and commodity prices to dizzying heights. The result is that the US has been exporting massive inflation world-wide.

    In the Middle East, where people spend 50% or more of their incomes on food, skyrocketing food prices have led to starvation and revolutions. These revolutions have led to skyrocketing oil prices. Thus, the result of Bernokio’s plan to save the US economy is to bring the US economy to the brink of collapse.

    It would truly be a delicious irony if Bernokio were to be put on trial for war crimes, as a result of his money-printing experiments that have exported starvation and revolution across the globe.

  • Stewie

    Lindsey Williams who’s predictions come from what he hears from high level oil company CEOs and are usually very accurate has some scary additional information on this topic.

    http://www.youtube.com/watch?v=U-kmI1hzbI0

  • Al Obama

    Oil is going to look cheap now compared to about
    10yrs from now : http://imperialeconomics.blogspot.com/2010/07/chinas-oil-consumption-and-imports.html

    I believe war between the US and China is a real
    possibility.By the way, was that Chinese SLBM
    launched off the coast of California last Nov.?

  • Robert

    This will increase the demand for corn to manufacture Ethanol. Farms will expand; marginal farmland will be cultivated. I was raised on a farm and know how farmers think. Last summer I drove through the countryside where I grew up and noted vast tracts of corn on every farm. The impact on food prices will be dramatic. Dig up your backyard and grow green oil (food).

  • mel

    Maybe going up to $10 per Gallon is a good thing for planet earth. If oil is too cheap, we have seen how wasteful American are..driving a SUV, living in a 4000 sqft suburban McMansion.. So bring it on ,the biggest Asshole Bernanke, for a few more round of QE. He obviously has blood in his hand for oil price!

  • Anthony Lisacchi

    5.00 Dollar Gas we can get around. Rise in cost of Food to eat becuse of the Price of OIL. We all have to eat, well at least once a day!

  • Ivan

    im surprised again

    RICHARD
    February 23rd, 2011 at 5:55 am
    DON’T SEE THE SAUDIS’ GOING THROUGH THE SAME THING AS THE REST OF THE MIDDLE EAST THEY HAVE TONS OF MONEY AND THERE PEOPLE CAN HAVE WHAT EVER THEY WANT.

    man prolly never left his village…

    man watchin too much of american propaganda TV… LOL – interesting – two days before egypt they were telling CNN BBC (i call them ALL american television – BBC including) -they told- it is not possible in egypt like in tunisia – they are rich and they have democrasy… oh ! those american ANAL-ists!!!

  • http://www.buildinggurus.com Building Guru

    With the turmoil, there is the expectation of less supply, but it does seem that just the thought of any troubling issue creates a higher price tag. There is no cure for the human phyche and until we create our own source of energy that we can self sustain, like reducing energy waste and increasing effeciency, we won’t be immune to the frenzy that creates instant higher prices at the pump.

  • ALFRED E. NEUMAN

    WHERE THE HELL IS ALL THIS OIL WE READ ABOUT BEING RIGHT HERE IN THE UNITED STATES of AMERICA? I AM SICK AND TIRED OF BEING HELD HOSTAGE BY LEFT WING COMMUNIST LOONS THE BIGGEST OF WHOM LIVES IN THE WHITEHOUSE!CODE PINK, AND A MYRIAD OTHER LEFT WING FAUX ENVIRONMENTALISTS.
    NOT UNTIL WE NEUTRALIZE THESE WORTHLESS COMMUNIST, SOCIALIST, MUSLIM, BASTARDS RIGHT HERE IN OUR OWN GOVERNMENT WILL THIS NATION EVER RETURN TO BEING THE GREATEST COUNTRY ON THE FACE OF THIS EARTH.

  • Bruce

    Maybe with the republicans in office they can tell the full time greedy useless Eco Nazi to shut up and start producing our own oil. Nah the liberals will cry and stomp their feet like spoiled brats and keep oil heading to $200 a barrel instead of putting Americans to work.

  • southern tier of ny

    looks like speculation is taking over…. local gas stations have lines 20+ cars long at every pump today….

  • Frank W.

    The problem here are not the politicians, instead the entire blame must be placed on the American populace for being so uneducated and ignorant every time they elect their representatives. In fact, ordinary Americans clearly fit in one of Leo Strauss’ (*) categorization of society: The Vulgar Many.

    “The Vulgar Many, are lovers of wealth and pleasure. They are selfish, slothful, and indolent. They can be inspired to rise above their brutish existence only by fear of impending death or catastrophe.”

    As long as ordinary Americans remain in such brutish state, it will be very easy for any skilled sophist to manipulate and subdue these savages.

    (*) German philosopher, 1899-1973

  • http://www.phantomreport.com DSRehder

    A world conflict is coming and there is no stopping or escaping its wrath.

    Oil is the economy!

    http://www.phantomreport.com

  • nzjonz

    As all the OPEC have signifcantly inflated their inground reserves and therefore the actual amount of oil in the ground cannot be verified.

    The amount of spare capacity the House of Saud have is therefore most likely significantly less and I would suggest it would be around the amount of oil Lybia and Algeria produce ie 2.6 millions b/d hence the projected $200 a barrel oil.

    Anyway why would they want to sell their oil at knock down prices when they need the revenue to bribe their own people to try prevent an uprising, after all the consumers will buy oil at whatever they price especially the banksters.

    I am always amazed how America and to a lesser extent the Brits try to impose a western solution and values on an eastern culture who have their own way of dealing with issues.

    As an aside I see that as the wages for workers rises in China some companys are now starting to consider moving their operations out of China into India – a bit of karma here I think.

  • Kevin

    Maria

    China will pay would market price. Russia will not sell to them cheaper then it can get elsewhere. All China is doing is ensuring a supply source providing it has the money.

    The US wells will open up once they can stay profitable. The easy oil has been removed. Let the price of oil get high enough to make coal to liquid sustainably profitable and that will also occur. Let that price stay up there and Natural Gas will be either incorporated into the feedstock to increase the hydrogen or automobiles will be converting to exclusive Natural Gas operation.

    Let Uncle Sam keep over spending and thereby increase the supply of money via the Federal Reserve coupled with the USD having reserve currency status and that oil can go up to any price one could imagine.

  • ross

    Saudi`s are the most pampered people on Earth. Get married there & the government give you a free plot of land to build a house. Imagine asking that off your local gov in the U.S or Europe, there`d prob call the cops or for phyciatric help lol.

    The rest is peak oil, were`re on the bumpy plateau of oil price shocks & crashes that will prob last another several years until complete collapse of social/ecconomic life as you know it. That will last several generations or so ( a major blip in history of the human race, that will eventually recover)

  • Mark Plus

    “It is not that oil is so valuable, it is that the dollar is worth so much less. The Federal Reserve has made the US dollar worth less and less.”

    By that logic, the dollar must have been worth more when the price of oil collapsed down to the $30’s about two years ago. The Fed must have screwed up somehow; perhaps someone at the Fed pushed the wrong button or something.

  • A Blissful Ignoramus

    Justin Beiber got a haircut. It was on the news.

  • Kevin

    southern

    At the downstream level of marketing the gas stations raise their price today in anticipation of higher costs of the resupply shipment.

  • mondobeyondo

    The unrest in Libya is just the trigger to get oil prices truly out of control.

    The oil cartels are already asking for an arm and a leg. Soon they’ll want their pound of flesh…

  • mondobeyondo

    Yes, the U.S. does have a “Strategic Defense Reserve”, or something like that, which would be utilized during a true emergency. Our government will NEVER tap into that, under any domestic crisis.

    Our domestic oil reserve is to be used in case of an international crisis, a la the Arab oil embargo in 1973. Once our Arab brethren (brothers in arms… wink, wink, hee!*) turn their backs on the U.S, then we’ll use it..
    ——————
    (*Those Arab despots like Mubarak, etc. would never have survived so long without U.S. help.) Yes, we bombed Gadhafi back in 1986, as retaliation for blowing up a German disco as I recall – but he was being a bad boy and Uncle Sam had to take him to the woodshed. Now we’re all goody-goody with Gadhafi.

    WHY? Easy. A three letter word that begins with “O”, and ends with “L”. Oh, and there’s a vowel in the middle.

  • http://www.shelter101.com Dave Shelter

    I originally thought the Treasury was going to be the start of the economic collapse of 2011, but it seems now it may be the price of oil. Looks like the government shutting down and debt ceiling may be icing on the cake. Gas prices will be the silver bullet, since higher gas prices cause a stagnant economy inflation will take effect. The reason? It cost more to bring goods to market with higher oil prices. Pulling into a gas station and seeing $4 a gallon makes people whine. Pulling into a gas station and seeing $5, $6 or $7 will cause a crises. With welfare cuts coming up, and more public union wage cuts, there will be more protest. More protest equal a greater chance violence will break out.

  • mondobeyondo

    Simple question. How big is your vehicle’s gas tank?

    If you have an SUV, it’s probably around 20-25 gallons, maybe. I don’t know, I don’t own an SUV, and can’t afford one.

    But assuming you do own a Range Rover or Tahoe or Explorer…with a 20 gallon tank at $5.00/gallon, that’s $100 a gallon to fuel the tank of your gas guzzling monster.

    Can you justify such an expense, driving across town? I can understand it if you were driving from L.A. to Phoenix, or maybe from Denver to Kansas City, or Dallas to Houston. But seriously…a couple miles to the grocery store and back home??

    Ride a bike. Lose some weight.

  • http://www.danielrevelationbiblestudies.com Robert Stout

    Two things a person need to do to prepare for the near future, go to: http://www.survivorblog.com and glean as much information as possible!!! Then to http://www.danielrevelationbiblestudies.com for a complete in-depth view of coming apocalyptic prophecy that will be fulfilled right before our eyes!!! This is another Jesuit decision worldwide to raise the price of gas to continue to strangle the middle class and the ever increasing poor folks whose ranks are being filled daily by the middle class!!! Prepare today, you will be eternally glad you did!!!

  • Kevin

    Dave Shelter

    It’s a vicious cycle. Uncle Sam does a vain attempt to prop up the economy overloaded by debt with more debt: A lot more debt. As jobs lay off more and more people require assistance. We’re broke so the additional money is borrowed but no one want’s to loan the US any money and those holding US dollars are looking for a way to get rid of them because their purchasing power is declining. The reason their value is declining? Too many are produced. Our response? Produce more money, cut out the difficult borrowing process and just buy your own debt. Simple solution for a simple mind; theres not enough money so just make more.

    This is what happens when you stop creating wealth (make things) and replace it with just making the medium of exchange of wealth M1, M2 & M3.

    The developed world opens it’s market duty free to the developing world that has 3X the population and someone is surprised by the result? How many calculus courses does one need before they loose the capacity to add and subtract? Educated people planned this out. Either there is a master plan and an agenda or the most stupid people are running the show?

    Someone really think their dumb?

  • http://StrikeForce onhalo

    Why is it that no one is talking about the way the communists/environmentalists/IWO read Obama have made sure that we do have our own oil. I am wanting gas to hit $20.00 a gallon, then maybe, just maybe more of these head in the teevee Americans will wake up and throw these evil basta*ds into the hell hole they belong and do what we should have been doing all along. Civil war is coming between those who actually work for a living and those who want to steal whatever they want by force. Get ready to Rumble.

  • The Unicorn

    Fuel prices always go up this time of year.The refineries just pass on the cost.Different fuel/air mixture for winter and summer.The reciprocating engine is a dinosaur that should be extinct already.

  • Ole

    Guys, if you are in Turkey, you already pay 17USD per gallon. If you are in Denmark, you already pay 14USD per gallon. I have a SUV, I have two jobs, drive 80 miles per day, and give out 100USD on fuel every 4th day. 4USD per gallon is expensive? Its a bargain!!!

    • Karim

      Turkey and Denmark have an excellent public transportation system and people don’t drive 80 a day to go to work, they drive 80 miles when they go on vacation.

  • Kevin

    The Unicorn

    They add more light ends in the winter months changing the vapor pressure so that an engine starts easier in the cold. The EPA mandates on a date in spring (forget the date) that they go to the summer blend. The winter blend would vaporize too much for no reason in the summer sending unburnt hydrocarbons to the atmosphere.

    Refiners typically operate in a $4 / bbl – $12 / bbl crack spread (delta between crude and finished product). $4 a bbl is minimum for short term sustainability (no money for upgrades) and during Katrina the spread hit $40 / bbl for a short period of time.

    The money in oil is in the upstream side known as E&P (Exploration & Production).

  • The Unicorn

    Thanks Kevin, I wonder what type gasoline they use in china?

  • http://www.mat-rodina.blogspot.com Stanislav

    How the Muslim Brotherhood Saved the US Dollar

    Here’s an alternative view on what’s behind these US back Islamic revolutions.

  • German Elesdi

    I have always advised to build electrical trains for massive transportation and to ride bikes, it may change the way you live but what would you choose to pay for gas or not?

  • nader paul kucinich gravel mckinney

    Big Oil wants their Record Profits now
    before they ever pay a cent for new oil.

  • http://endtimeinfo.com Doe

    What is happening right now is nothing compared to what might be ahead if Saudi Arabia joins the party

    http://endtimeinfo.com/2011/02/world-economy-will-fall-if-revolts-spread-to-saudi-arabia/

    I really hope it won’t happen…

  • Frieda

    How come it is never mentioned in the lamestream media (or alternative for that matter) that the US military/Pentagon gobbles up probably 10-15% of foreign oil? Those endless “missions” over AfPak and now probably Libya, uses thousands of gallons by the hour. Budgets are slashed in this state, but there’s always money available for the Blue Angels show–estimated to cost 30,000USD in fuel for a two day showing and hours of training before that.

  • Ivan

    I have news for your “Big oil” idiots: About 85% of all the oil reserves in the world are owned by governments, not some “big oil” conglomerate.

    Enought with the left-wing bovien fecal matter, okay?

  • Kevin

    Unicorn

    I assume unleaded because all cars that I’m aware of are set up for it.

    Oh here is a generally misunderstood refinery fact. Diesel (#2) is more valuable because it’s about 20% denser then gasoline. It takes more crude oil to make a gallon of diesel. Volume in output (GDL = Gasoline, Distilates, Lubes) is greater then volume input (crude) in a refinery.

  • http://www.pathtoasia.com rhea

    What has Obama done to prepare us for this?
    More windmills & solar. Unfortunately, this will account for less that 1% of our national energy production.

    We help Americans find jobs and prosperity in Asia. For details, visit http://www.pathtoasia.com/jobs/

  • Hucklebuck

    Odd that when this happened in ’08 it lead the network news every night. No, not so much.

  • Steve

    We haven’t seen anything yet. All else will pale in comparison to what happens when the US dollar is no longer the currency used by the world in buying or selling petroleum!

  • http://www.shelter101.com Dave Shelter

    The Obama administration has has a very weak image when it comes to middle east matters. Iran recognizes this and is using the opportunity to strategically put the Muslim Brotherhood into control of protesting countries. Obama’s own decision to support the Muslim Brotherhood in Egypt paints a picture of a weak US administration treading on dangerous water. If Oil gets shut off we will see $10 Gasoline.
    http://shelter101.com/fall-of-saudi-arabia-will-cause-global-economic-collapse.html

  • Kirk Leiferman

    We need to stop the blame game and start working on using less oil. We have been in this trouble since the Carter Administration. All we do is blame the other party. We talk big but that is all we do. Let see some research and development. The price of gas today isn’t the Obama administration fault just like it wasn’t the Bush administration fault when it reached $4.00 in 2008.

    • Karim

      Food delivery trucks would have to go electric, that’s very far into the future. The same goes for airplanes. So your food and products still need gas, another think that needs a LOT of gas, is war, I don’t see an end in sight do you?

  • lucy

    well I live in Canada the 2nd wealthies oil nation in the world next to Saudi Arabia and I am going to give you the non American perpspective on this…Our country produces an extra 100 million barrells of oil a year beyond what we consume but American tycoons and governmental policies has managed over a course of years to weezel so much of our oil out and impose so many laws upon us that we are supplying your country with oil and leaving a defecit in our own country which is supplied by Libya to us off all places in the world…Wouldn’t you know it they left us holding the bag they didn’t want to carry! Suprise suprise your country is guilty of something for real toward their so called favourite neighbour…Don’t kid yourself they are all out for their own interets period…bugged in Canada!

  • clayton

    Lindsey Williams said on the Alex Jones show April 13 2011 that the ‘elite’ told him that Saudi Arabia will get violent and oil would go to 150 to 200 dollars a barrel. In the not so distant future. Also, he was told that food will be on the shelves, but you won’t be able to buy it because of hyperinflation. The U.S. dollar will by worthless. (soon).

  • Steven

    It is time for the American and other people to put there foot down and that is for the semi drivers to shut down and let goverment figure out how to move there stuff!! With out trucks nothing can be moved!! Because all the goverment is trying to do is out the little people even lower then what they already are they dont care they dont pay for there full,home rent,food,and they dont even have to pay to rase there kids WE the poeple have to pay taxes so they can live and not care about the little people get to work or anything so All of us need to stop helping them take away the semi and NOT buy there gas NONE at all and see what they think about it!!!!!!

  • paradigm shift

    when I see ZERO rednecks in giant hemis zooming to mao mart to buy cheap communist junk with their spoiled obese nitwit in the back, it can only be a GOOD thing….since locally nobody has changed any redneck behavior yet, gas prices need to still keep going up until there is behavior change. period…..if never, fine. rednecks in giant hemis can go bankrupt. then they might grow an empathy gene for everybody else they hate while they live in trailer parks or mcmansions they can’t afford and blame everybody else for their hateful rhetoric and narrow ideology and horrible circumstances where they are stuck in middle of nowhere now and can’t figure out why except for labeling and blaming others!!!! it is karma suckers!!!!! deal with it…drought in TX..predicted. flooding predicted. higher food prices predicted. no clean potable water predicted….dont whine later it is all predicted now!

  • paradigm shift

    grow local. support LOCAL farmers. support LOCAL business. communist mart isn’t local and abuses workers EVERY step of its’ unsustainable business model. if you dont believe in science trust SCIENTISTS who have no reason BUT to tell the truth as their predictions are based on SCIENCE and their whole careers are directly focused on disciplines regular peons know nothing about..if we can’t do this simple thing, there isn’t much hope. we will continue to read daily about ‘historic’ or ‘record’ flooding/drought/wildfire/tsunamis/hurricanes/tornadoes and pretend we have no reason at all what is happening. it is god or gays or women especially ‘professionals’ or muslims or jews or ‘elitists’ or liberals or progressives or obama etc etc etc….when you are too ignorant to understand anything you dont deserve to be coddled….Obama only has to keep telling the truth and right wing denialists will keep putting foot in mouth like rush limburger.

  • paradigm shift

    if as above stated saudi arabia will get violent, it is even more reason for their colluding with Iran to ensure oil prices stay high to pacify their citizenry. if you read foreign news, this is already what they have done AFTER we sold saudis 80 BILLION in arms, the LARGEST ever arms sale in US history. now mccain says we should start a war in syria on side of al qaeda and taliban while russia has military bases IN syria. this is even more of a flashpoint than Iran who is 100% supported by russia and china……interesting times!!!!

  • paradigm shift

    ironically the US military is the ‘greenest’ segment of our society while it attacks numerous countries in order to ‘protect’ oil.

    interesting times!!

  • paradigm shift

    I agree with all above. other countries DO have cars. duh!! they also have excellent public transportion incl. high speed rail…remember you aren’t IN traffic, you ARE traffic!!I see mercedes and benz and audi on weekends driven by businessmen/women. you dont need personal autos to commute like in US…that is going to be a huge anchor that US has literally NO rural rail system and will prob. accelerate current rural to urban migration happening globally and irrespective of all other extraneous variables/factors blamed for whatever. people will vote with their feet as gas prices continue to skyrocket and eventually tipping point will be when we inevitably attack Iran due to israeli pressure and when gas is about $4.50 nationwide and this will basically accomplish nothing but look like we are doing something!!!!which is all that counts in political cycles….get reelected and then more subterfuge and treating people like mushrooms. i.e. kept in dark and fed *****.

  • http://yahoo charles

    These prices are ridiculous. We minimum wage earners cannot afford these prices!!!!!! Starve us????? All our wages contribute to fuel consumption!!! WTF???

  • http://yahoo charles

    Suck, suck, suck! Everything goes up except WAGES! The American way? Right!!!!! LOL!!!!!!

  • http://www.dnusbaum.com Douglas Nusbaum

    and once again the talking head experts emit streams of information whose correlation with the physical world is random at best.

    serch the two words orwells boot. What comes back as item 1 is mine. Under factotum666. Worth the time to read.

  • Mayer Hawthorne

    Onhalo, are you a person, or are you just a cosmic being made up of idiotic soundbites from stupid conservative talking heads?

    If you had an original thought in your head, it would die of loneliness.

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