'Squawk Box' Guest Warns of $12-15-a-Gallon Gas

[billfred]

Nat. Gas prices can rise the same way with demand. and Gasoline is still way cheaper - and hippies won't allow atom splits in cars (like the technology exists) - so back to square one we go.

r

Gasoline is still way cheaper???? Natural gas trades at almost a 50% energy equivalent discount to oil. You have any idea what you are talking about?

 

[biggernu]

they pay 6 bucks a gallon in the uk i heard, so i am not complaining.

 

[Razorguns]

Gasoline is still way cheaper???? Natural gas trades at almost a 50% energy equivalent discount to oil. You have any idea what you are talking about?

i said CAN RISE making gasoline still cheaper. Just like corn is cheap today, if airlines start runnig on it - 3rd world people can never afford corn anymore and we'll all beg for gasoline again.

Supply and Demand sets prices. Speculation drives it up.

Learn to read hooker!

r

 

[redsamurai]

$12-$15 a gallon would completely cripple the american economy. I mean people wouldn't leave their houses if something aint' in walking distance. And the way the infrastructure in this country is set up.........ain't nothin hardly in walkin distance. Alot of people make a big stink about OPEC, but OPEC isn't dumb either........they make alot of money off of the U.S......they won't price things "That" high as it would sink they're major buyer.

 

[billfred]

$12-$15 a gallon would completely cripple the american economy. I mean people wouldn't leave their houses if something aint' in walking distance. And the way the infrastructure in this country is set up.........ain't nothin hardly in walkin distance. Alot of people make a big stink about OPEC, but OPEC isn't dumb either........they make alot of money off of the U.S......they won't price things "That" high as it would sink they're major buyer.

you are assuming OPEC still has enough supply to control the situation.

 

[Razorguns]

$12-$15 a gallon would completely cripple the american economy. I mean people wouldn't leave their houses if something aint' in walking distance. And the way the infrastructure in this country is set up.........ain't nothin hardly in walkin distance. Alot of people make a big stink about OPEC, but OPEC isn't dumb either........they make alot of money off of the U.S......they won't price things "That" high as it would sink they're major buyer.

demand would fall, speculators would stop speculating, goldman sachs would take a shit, prices would fall, equilibirium woudl be reached.

Two words: Mortgage Boom.

Prices will rise to as far as people will continue to keep buying it. And I think that level is $6 before you really see people start changing their lives. Once it hits that, it'll stay just below that. Same reason you couldn't set average house prices at $9.5 million.

r

 

[redsamurai]

demand would fall, speculators would stop speculating, goldman sachs would take a shit, prices would fall, equilibirium woudl be reached.

Two words: Mortgage Boom.

Prices will rise to as far as people will continue to keep buying it. And I think that level is $6 before you really see people start changing their lives. Once it hits that, it'll stay just below that. Same reason you couldn't set average house prices at $9.5 million.

r

It's already affected me. I aint' drivin hardly no wheres anymore. And when I fill up I only go half tank. With a full tank you're lulled into a sense of security and start to drive around more than you should. I only go out for necessities now. The only restaurants I may go to are stop offs on the way to a "necessity". The service industry is going to get hit by that. They're already hit by the rising food prices. I kind of take issue now with people who say that we've been babies about our low gas prices and we're just whiners now. It's just the way the country is setup..........you've got to drive to everything. That's not going to change either. You can't just up and rebuild the country from scratch to "centralize" things more. There's nothing to do but just move on to alternative fuel cars. Even mass transit has it's limitations. You're basically stuck looking for jobs that are along the transit lines.

 

[Creepusmaximus]

$12-$15 a gallon would completely cripple the american economy. I mean people wouldn't leave their houses if something aint' in walking distance. And the way the infrastructure in this country is set up.........ain't nothin hardly in walkin distance. Alot of people make a big stink about OPEC, but OPEC isn't dumb either........they make alot of money off of the U.S......they won't price things "That" high as it would sink they're major buyer.

Thank the dem's for public housing which killed our inner cities and with it mass transportation.

 

[Varga]

There could also be oil at the bottom of oceans....but who has the technology to go that deep yet

 

[billfred]

There could also be oil at the bottom of oceans....but who has the technology to go that deep yet

or rigs or pipe. You know it is not just a matter of turning on the spiggot. There are rigs being shut donw right now because there is not enough pipe to run in the hole.

Pipe prices have doubled since February and it is still none to be had.