I took two 3 hour trips this weekend on I-70 and it was absurd the amount of people driving over 80. Every 3-4 minutes I'd get passed by a pod of 8-10 cars going 80+ mph. Honestly I think at least 70% of the drivers were going over 80. Maybe 20% passed me fairly slowly, as if they were going 73-74 mph. I set my cruise on 70 mph (the speed limit) and I think I passed 3 cars other than semis each way. That's it.
Everybody is quick to say "oh gas is cheaper, now I can drive faster and have it cost the same or even still less." I've driven the same route on I-70 probably 50 times before and have never seen so many people driving so fast.
That's ok . . . RhodeIslandGasPrices.com has prices increasing now so Fill up while it is cheep - looks like the price break is over. Lowest at the typical stations around here was 1.789 reg which I bought $10 worth in case it continued to drop in price . . . looks like it is time to get some more before it goes up. Another month another 10 gallons for 400 miles of driving.
Now I don't mean to throw a wet blanket on the party, but this cheap gas is only a temporary thing. The demand index was shown today on Bloomberg and we have a fragile 300,000 barrel index that is keeping our gas prices low. Fragile I mean that if one supertanker were to sink, a new war, a hurricane, seismic event, or most likely some economic ripple, gas could strole right back to 4 or 5 dollars a gallon. Remember with the last 5 dollar shot. The Euro was at it's highest ever, SUV's ruled the planet (Planet USA) that is, and America was at peak production. Put that all together and we had 5 dollar gasoline. Since then we are driving less, the economy has us spending less, the big 3 are begging for a loan, and the euro has fallen.
When will it go up? There are predictions of 4 dollars gas by Summer 09, but what is the mechanism for it's rise. I see more SUV's back on the road, their speeding as usual, people are driving more. Since I drive for a living, I spend half of what I did for gas, that gives me some more wallet at the end of the month. As America lax's we will edge closer to consuming to peak production again, the economy is holding down run away spending for now.
India and China are growing, this is a constant and it's a ticking clock, reguardless of what we see in cheap gas prices, it won't be like this forever. The world demand chart I saw this morning shows growth and increased demand. If Russia were to get a thousand more cars on the road, stuff like that, were going to start heading up again.
The problem, like Obama said, is this cheap gas is stealing the thunder for alternative energy. Remember when 5 dollar gas hit, windmills, alcohol production, who has economy cars, pick up the kids, go to work, buy groceries in one trip, all that talk and thinking is slowing down. The only ones concerned with economy cars is the big 3, that's all they can sell, and they don't have a demand for SUV's and economy cars won't sell until gas starts to rise again.
We are poised to start the rise again, all that is needed is a little 300,000 barrel bump.
I heard a few days ago that OPEC thought that $75 a barrel would be a fair price. Even so, I believe I heard that they decided NOT to cut production at this time even though it's currently only about $55 per barrel.
It might be nice to say OK- we agree to immediately increase the worldwide cost of oil to $75, but you (OPEC) have to agree to produce enough to keep up with demand so that the price stays at $75 a barrel for the next 5 years
unfortunately, actually using that much. I've had a couple of 300 mile each way trips in the last 10 days along with my normal work commute. Had a couple weddings to go to, plus back home for Thanksgiving. I put 1500 miles on in that time. eek.
But I did bring back a whole bunch of firewood from home after Thanksgiving, so maybe I'll save a little on natural gas this winter. And it'll kind of even out for me because I don't have to drive to work three days this week (normally fill up once per week because of my commute), and I won't be driving for 10 days over Christmas because I'm going on vacation.