Gas Prices Are Ready to go Up! Again?

[GO DAWG GO]

Since the gas prices have gone up substantially in the last couple of years, I have begun carpooling. I have reduced my personal gas consumption from about 35 gallons a week to about 15 on average.

The New York Times had an article on the Drudge Report about gas prices ready to go up again. They also said that we are using more gas than ever and this is the peak usage time of the season. This coupled with refinery issues that are still evident since Katrina was the culprit for the soon to be gas price increases.

I have heard conflicting reports that our usage had declined and that was the reason for the 30 cent reduction in the price of gasoline on average in the last couple of months.

My question is: Do you use less gas than you did two years ago?

I use less than half of what I did. Most people I talk to say they have reduced there driving appreciably.

What about you fellas?

[Tervuren]

Definately gone up here, I do a LOT more driving, and tend to just hop in and drive on a Friday/Saturday afternoon with no plan of action. There have been very few car events for me to attend this July, so I've just been going out on my own.

Pre Katrina, with the cheaper gas, I probably only drove a tank a month.

[m21sniper]

I just raise my prices to compensate for fuel costs, and to me, there is no difference in my lifestyle at all, as a result.

[sammyg2]

I use slightly more than 2 years ago.

Demand in the US has risen and will probably continue to do so.
Refining capacity in the US cannot keep up and hasn't been able to do so for many years.
We were able to import cheap gas and that kept the prices low and stable. The demand abroad has also increased to the point where we can no longer count on cheap imports.

Gas will dip down to around $2.70 this winter in Ca. (depending on hurricanes and how cold it gets, heating oil etc).
Next spring the refinery maintenance schedule is not supposed to be as severe as it was this year so the supply deficit shouldn't be as bad as it was this spring.
Next summer will probably see prices near $3.50 or possibly higher.

I sold all of my refining stocks about 2 months ago but plan to invest up to $3/4 mil into VLO and TSO again around December. I figure they will dip and then climb to near new records by June.
If the hurricane season is heavy or the winter is unusually cold everything changes.

Disclaimer, this prediction is based on seasonal trends over the past 10 years and public information that is available from the DOE and no insider information whatsoever. Please take it with a grain of salt, it is worth what you paid for it.

[hytem]

High demand means high prices. Refinery capacity is close to the limit, so there isn't an excess supply.

Americans have to understand there's a price for those big vans and SUVs in almost every driveway. And the price is at the pump.

The car companies love it. The oil companies love it.
And the stockholders love it.

[Shuie]

I pay for less, but Im probably using more.

[Shuie]

[2.7RACER]

Is there anyone out there who believes the price of gas is going to drop over the next three to five years?
If in fact fuel doesn't drop and continues on the current upward spiral, which companies will benefit and which will suffer?
A 3x5 card should be sufficient to identify these companies.
Placing your investments accordingly should reap handsome returns.
As SammyG2 said, "this prediction .........it is worth what you paid for it"
Good luck,
Oh yes I'm trying to reduce my fuel consumption. Five years from now $60 a tank will look like a bargain.

[sammyg2]

Sguie, you need to modify that picture to lose the star. there is no Texaco anymore. There are still 76 stations but they aren't owned or run by unocal, they belong to conocophillips.

[Shuie]

Yeah, its an old picture. Same old song and dance, tho

[futuresoptions]

Thats why I have turned to using straight sea water in my 911s....

[Shuie]

Originally posted by futuresoptions
Thats why I have turned to using straight sea water in my 911s....

I just quit whining about it and bought a Honda Civic and all of the XOM stock I can afford. Resistance is futile

[Rick Lee]

A few years ago $3.20 a gallon seemed unthinkable. But it hasn't put any dent at all in consumption. My guess is $5 a gallon would start waking Americans up and $7 a gallon would start changing people's driving and buying habits. Americans have a sense of entitlement when it comes to cheap gas. I probably use a little more than I did two years ago, but most of it is with a passenger now, as I carpool. Doing so is way cheaper and faster than public trans.

[JavaBrewer]

Two weeks ago we made the trek from San Diego to Salt Lake City via Las Vegas. Imagine my shock to see gas $.05-.10/gal MORE expensive in SLC than my first fill up in San Marcos! That has to be a first...LV seemed to be == to Cali.

I always expect to pay top dollar for gas in the summer. I also think that gas would have to hit $5-6/gal before folks in the U.S. take conservation seriously.

[k9handler]

when did they go down? The on base service stations here just raise the prices each time the US does, yet they never seem to go down. I think it's about $3.45 a gallon at the moment.

[GO DAWG GO]

k9handler,

They did in So-cal about thirty cents on average across the board. I looked this morning and gas (regular) is ~2.95-3.05 around town.

California's Inland Empire...

Have a nice day

Bob

[BeerBurner]

After factoring in changes in my commute and such, I really don't think my gasoline usage has changed at all from two years ago. The only real difference I can think of is that two years ago my Miata:944 driving ratio was higher, so I am burning off some extra gas because I'd driving the 944 relatively more than before.

I just don't take nearly as many theraputic drives as I should be.

BB.

[GO DAWG GO]

I'm getting ready for one after what Tabs wrote in the Muslim thread. Hes thinking of "martryerdom" I think I'll throw a $20 in my gas tank and go for a nice peaceful spirited drive.


Bob

[sammyg2]

I'm paying around $2.85 a gallon now, adjusted for inflation that's cheaper than what I paid for gas when I was in college but it's more fun toi b!tch than to look at it that way

[DanielDudley]

The Canadians will produce more if prices get much higher.