How will we survive $15 gas??

[dolfan]

Okay, let's say that the worst predictions about gas prices and oil supply, etc., hold true. They seldom do, but let's say this time the dire predictions are the most correct ones.

What will you do if gas moves past $5, $8, $10, $15 a gallon?? Everyone rushing out and buying smaller more efficient cars isn't going to dent prices, so that's not a solution. It could even backfire as you give up the equity in your current vehicle and add to your total debt load in the face of higher prices on everything.

These predictions would, if they bear out, require a watershed change of how we live. 9/11 will be nothing in terms of lifestyle adjustment compared to $9.11 cent for a gallon of gas, and I'm not trying to be glib.

My wife would have to quit her job, I can tell you that. She drives 30 miles one way, and she gets a mileage allowance that is less than the IRS deduction allowance. She's not going to pay her employer to work for them. But, in her line of work, driving is just a necessity. That makes her degree and experience nigh worthless, and her prospects for employment very tough in that environment where massive job losses would be in store. I might work from home a couple of days a week myself.

What about food?? If oil is $200-300 a barrel, and gas is $10 a gallon or whatever, food prices will be out of the roof. Restaurants will shut down because people will not be able to afford eating there. Grocery stores will whittle inventory down to emphasize essentials over bell-and-whistle products that people will quit buying, and they'll also layoff workers and close doors. That means fewer choices for consumers, further travel to get your food (using $10/gallon gas to get it), and many other implications.

What about school?? Will you even send your kids to school?? Will authorities prosecute parents as truants who simply cannot afford to drive their children to school, or who choose not to spend their money on that suddenly very high expense?? Will homeschooling grow, or will you just hope your town/city/district implements more busing??

What about your home? Can you afford to pay the mortgage without a job?? And, if you have to choose between mortgage, gas, credit card payments, food, etc., which will you NOT pay?? Will you have a plan for the long haul, because if these predictions begin to unfold as fact, this will not go away anytime soon.

I'm asking this stuff because I'm concerned that we will see some of this. I really am. Don't know that it'll get as bad as some say, but there's no reason to think there will be a sudden or sustained reversal. If it levels off here, we can make it. If it goes much further though, it will be as if Katrina swept across the whole world in terms of redefining what life will be like.

[pastorables]

What about food?? If oil is $200-300 a barrel, and gas is $10 a gallon or whatever, food prices will be out of the roof. Restaurants will shut down because people will not be able to afford eating there. Grocery stores will whittle inventory down to emphasize essentials over bell-and-whistle products that people will quit buying, and they'll also layoff workers and close doors. That means fewer choices for consumers, further travel to get your food (using $10/gallon gas to get it), and many other implications.

I'm with you friend.

Being in this line of business, I can already see a difference. The good news is that my sales are up due to discount groceries and people seeking savings. The bad news is that competitive stock gets harder and harder to locate and the general public can't understand the implications in this fact. I do not have a plan B, but I'm certainly believing in God for sustenance during these times.

What about school?? Will you even send your kids to school?? Will authorities prosecute parents as truants who simply cannot afford to drive their children to school, or who choose not to spend their money on that suddenly very high expense?? Will homeschooling grow, or will you just hope your town/city/district implements more busing??

Would schools begin to charge fees as the pre-schools, academies, and universities?

[dolfan]

Would schools charge fees? I can't see how they wouldn't, honestly. They already require way more contributions from parents than they did when I was a kid. This whole mess could get astronomically bad.

Now, I don't predict it will or won't. I don't know. But, I don't know that a year ago I'd have predicted we'd be where we are now, either, for what that's worth. What I don't know is how much of this is just panic driven, purely psychological and speculative? And, I don't know how much it matters even if it all is that way; I mean, if it is just that, that's been enough to get us to this point and the "experts" are predicting that it'll take us to these very bad places. Even if it stops today, how far does the inertia of it take us??? Or, are we already past the point of no return? I don't know.

Just saying "drill for oil here" is mighty appealing, and I agree 100%, but I don't think that solves the problem, and I'm not sure it even shrinks it much. I believe in the market. I believe in the market theory that investors act rationally. Speculation is now being deemed irrational, and it is probably true. But, over all and over time, the rationality of the market proves itself. So, what does the market "know" about the future of oil supply and price that we don't?? It "knows" something, there is something in the future that will forever shift our way of living, I think. What is that something? I don't know that, nor does the market itself know what it "knows" (okay, now I sound like Don Rumsfeld ).

[Paully_44]

What will you do if gas moves past $5, $8, $10, $15 a gallon??

we have moved past the $4/gallon mark for many stations here. My commute is 35 miles each way. Thankfully if I have an internet connection, i can get on the network and do my job so I now telecommute at least 2 days a week. I will be asking for another day.

I ride my motorcycle as much as I can when I communte in to work, but that is parked thru the winter months.

Church is 40 miles each way. We have worship practice every Thursday so we put at least 160 miles a week just for church.

The NOPEC Bill Apparantly congress wants to open a lawsuit with OPEC over gas prices.

[DeWayneTN]

Dolfan, I have had some of the same thoughts.

[Shellie]

Maybe we really WILL go to war for oil this time.

[scooter]

A piece of bread would buy a bag of gold....

Where's Karen?

[dolfan]

A piece of bread would buy a bag of gold....

Where's Karen?

[INLOVE]

I think that it is all possible. Now, what is the solution? Do we put a cap on how much a business can make in profits? I for one think that we need to ignor these "save the whales" people and drill on American soil more. These animal rights people who don't want the deer to relocate, are causing problems.

They say it will take 10yrs to build new refinaries, but I say thats bull. Look how quickly we build sky-scrapers.

Also, have you ever noticed that the animal rights people never have a problem with abortion? But god~forbid a deer die?

[scooter]

I think that it is all possible. Now, what is the solution? Do we put a cap on how much a business can make in profits? I for one think that we need to ignor these "save the whales" people and drill on American soil more. These animal rights people who don't want the deer to relocate, are causing problems.

They say it will take 10yrs to build new refinaries, but I say thats bull. Look how quickly we build sky-scrapers.

Also, have you ever noticed that the animal rights people never have a problem with abortion? But god~forbid a deer die?

Response: I knew I liked you.

I say put the best engineers we have on cracking a few major fault lines on the west coast to help California on in.

That would free us of a majority of the tree hugging liberals, especially if the NorthWest went in with it. If it didn't perhaps they would get the hint.

I loved the quote from the Tn. farmers this week who began using mules to gather hay. They said it was cheaper than putting gas in the tractor......and besides they said its the wave of the future.

[dolfan]

What will you do if gas moves past $5, $8, $10, $15 a gallon??

we have moved past the $4/gallon mark for many stations here. My commute is 35 miles each way. Thankfully if I have an internet connection, i can get on the network and do my job so I now telecommute at least 2 days a week. I will be asking for another day.

I ride my motorcycle as much as I can when I communte in to work, but that is parked thru the winter months.

Church is 40 miles each way. We have worship practice every Thursday so we put at least 160 miles a week just for church.

The NOPEC Bill Apparantly congress wants to open a lawsuit with OPEC over gas prices.

Interesting post. AAA published its annual cost-to-drive brochure in April. The results were based on an assumption of $2.94 per gallon for gas in factoring in fuel on cost-to-drive. How many miles per year do you drive? You can get the chart, see where your model fits in (if not exactly, then comparatively by class because the brochure uses only top selling models in each class for its figures). It assumes car less than 3 years old, too. But, you're looking at a likely minimum of 55 cents per mile to drive. That's about $82 or so per week to drive to church, including depreciation, insurance, maintenance, total cost to drive your vehicle. It's about $65 or so a week to drive to work, based on 3 times per week round trip commute of 70 miles. It is very likely more than that for both.
That's a lot of money to drive.



And, I'm all for drilling anywhere we think a drop of oil can be found. I don't care about deer, or anyone's opinion on the environment. I want $2 gas. That simple.

[Shellie]

Hey, wouldn't it be cool if someone could find a way to produce fuel from baby seals?

[dolfan]

Hey, wouldn't it be cool if someone could find a way to produce fuel from baby seals?

Extraction costs would be too high. You'd have a large carbon footprint from breaking all those Louisville Sluggers and having to make new ones. It'd never work.

[INLOVE]

Hey, wouldn't it be cool if someone could find a way to produce fuel from baby seals?

Extraction costs would be too high. You'd have a large carbon footprint from breaking all those Louisville Sluggers and having to make new ones. It'd never work.

[SBW]

I am very concerned about these prices. We may be looking at $10 diesel and $8 gasoline, within this year. At the manufacturing plant I work at, our employees can't afford the commute to work with those prices....shipping cost will kill us and our customers....as well as materials going up becuase of shipping on the supplier end.

I personally think America's enemies have figured out how to strangle us into complete collapse. We better start drilling oil here. It is estimated that we have a 60 to 100 year supply. Drill it now, and find an alternative over the next few years.

Just my 2 cents.