Updates
February 17, 2012: $4.00 gasoline in Los Angeles.
Just in time for Presidents Day: get ready for the long holiday weekend's highest prices ever in Southern California as $4 gasoline is expected to arrive in Los Angeles, Long Beach, and probably Orange County, too.
That's what energy analysts are predicting as the average price of a gallon of gasoline in the Los Angeles-Long Beach area reached $3.996 a gallon overnight, up nearly 2 cents since Thursday. That was also a jump of 15.9 cents a gallon since last week.
Original Post
His comments support my myth.
Perfect storm:
- This administration and previous administration: "business as usual"
- Iran looking to drive oil prices up; strategy: drive Western economies into recession
- oil spill in Gulf --> moratorium in Gulf
- the west never anticipated the huge growth by China
- In the big picture, oil from fracking represents just a trickle of overall supply. The trickle of oil coming from fracking doesn't impact the loss of oil from the Gulf due to the (continuing) moratorium
- Horrendous decision; part of the "business as usual" policy (or lack of energy policy)
- In 2010, "they" were predicting $5 gasoline in 2012
- demand of gasoline continues to decrease (down 6% in past year) and yet price of gasoline keeps going up; go back up to "perfect storm"
- It's already considered "a given" for the Europeans
- Will it spread to the US?
yup, $4.01 at gas stations between LA and San Diego.
ReplyDeleteWelcome to the land that Bakken crude oil never reaches.
All I can say is: this is not good for the economy in general. It is interesting the market is holding up as good as it is.
DeleteGood point on China, "The West never anticipated the huge growth by China."
ReplyDeleteMost people do not know that China already has a middle class the size of the United States, albeit with a standard of living early 50's+ an iphone. What they don't consider is that the bulk of its population is still rural and out of the economic mo jo of the east coast of that country. However, the east coast is a huge pull for the migration of cheap rural labor - so much so that 250-million people (just short of the 300-million population of the US) will migrate to urban areas by 2025. To just stay up with that growth, China's urban east coast will have to build the equivalent of a Minneapolis every 4 months between now and 2025.
Some might say, they can't build that much that fast. I was a similar skeptic, until I sat on the 56th floor of a Shanghai skyscraper last year (on one of the few clear nights that the city has) and confirmed a comment received in a brief earlier that week - 'In the last ten years, Shanghai constructed over 10,000 buildings over 10 stories high.' From where I sat looking out that night, 'Damn, they did.'
I've been to Banaglore, Deli, and Mumbai as well. Those folks are on a similar track as well, perhaps not as hot as China, but their numbers are no less staggering.
Bottom line, let others compete on the World market for this commodity. There is no rationale for us to do so when Providence has placed this resource within our National limits. The only question remaining is whether we have the will and more importantly common sense to do so. Otherwise we condemn ourselves to be at the mercy of long lines of communication (shipping lanes) that stretch out to third world strongmen with their hands on our future. Instead, let the Premier of China bow and daintily hold hands with Saudi monarchs.
CW2 Boise
I agree; the average American has no idea how fast the Chinese are moving.
DeleteI was in Tahoe this weekend and regular unleaded was $4.39 / gallon in Truckee, CA. On the way back I filled up in Dixon, CA for $3.99 / gallon.
ReplyDeleteIt will be interesting to see the price of oil when fracking is banned by the EPA.
ReplyDelete