pman6

OPEC's decision means we'll see a bigger gas price drop.

With gas prices falling this much, I'm more inclined to drive WOT

I used to be a gas miser. How bout you guys?

mmarshall

I drive pretty much the same number of miles regardless of the pump prices....but my situation may not be the same as others. Besides, gas that gets TOO cheap is not necessarily a good thing. That's because many people think only of themselves and their own budgets, not the long-term public good. But eventually, like it or not, the world's supply of crude oil, tar shale, and other sources for gasoline are going to runout, and we are going to have to be looking at alternative fuels.....and, in this larger view, cheap gas is only going to continue to feed the addiction to its use.

Wild up and down swings in oil and gas prices also work against the ability of auto manufacturers to adequately plan ahead for what types of vehicles they need to produce to satisfy customer demand. For instance, low gas prices, such as what we have today, tend to encourage more sales of larger trucks and SUVs (and perhaps some high-performance sedans and sports cars). But, if manufacturers adjust and retool their plants for this type of production and then, suddenly, gas prices rise sharply (which can often happen from Gulf-Coast storms or traumatic events in the Middle East), they're caught flat-footed, and dealerships will not have enough of the type of more economical vehicles on hand that customers then want (or, of course, in reverse). So, up-and down gas prices make it difficult for manufacturers to plan in advance for the short-term, though, of course, government-imposed CAFE rules dwindling oil resources obviously, regardless of customer-demand, dictate a long-term substitution of new alternate fuels for the traditional gasoline.

Sweatshop

iTrader: (11)

Marshall, I could agree with everything you just said. But the world has seen that the U.S. will tolerate ANYTHING under 4 bucks/gallon. After that, you wake up the beast that is good old American innovation and progress with alternative fuels and fuel conservation practices. The OP stated it perfectly. Give us a false hope that there's some flex and we'll burn some rubber and spend that extra money on fuel guzzling, speed-inviting mods and poorer driving practices.

mmarshall

Some things, of course, are also beyond a driver's control, no matter how much or how little it costs to fill up. For instance, in the bumper-to-bumper traffic of many of today's large American cities (Los Angeles and my own D.C. area are arguably the two worst), there often, physically, just isn't enough free space on the roads for aggressive driving. And the deteriorating condition of many roads today also demands that one keep speeds down.

ABC

Good time to start jumping into energy stocks and mutual funds. Get them cheap before they go back up (we all know they will...)

mmarshall

Low energy or fuel prices do not necessarily translate into low stock or mutual-fund-share prices.

spwolf

hopefully this means return of V8's world wide :-)

I rarely see new V8's these day in Europe... we used to have so many M3' and M5's running around, now they are mostly 318d and 520d.

mmarshall

I wouldn't bet on it....though, like you, I personally would like to see at least flagship luxury and performance cars either get or keep their V8s. But the pressure for downsized engines nowadays, even with dropping fuel prices, is enormous. In the U.S., the Obama Administration adopted new CAFE rules several years ago, and, of course, in Europe and Japan, larger engines are taxed.

darkdream

Doubt it. Car companies are looking to long term. If they spend money investing and developing in big block engines if gas prices suddenly skyrocket sales will plummet.

Toys4RJill

I wouldn't be so happy. Low demand means there is something wrong with the economy in the US and worldwide. Once the Holiday season is over and the retail and shipping returns are not there, a collapse of the economy will happen.

mmarshall

Freight-carriers, though, which form one of the backbones of the economy, will have lower operating costs from the less-expensive fuel they need for their trucks, trains, cargo planes, and ships. That will help hold down the costs of the actual food and merchandise that they ship. Hard to imagine an economic collapse while that is the case.

bitkahuna

iTrader: (20)

It has more to do with govt tax greed on cars and fuel, and disincentives on fun engines than oil prices.

I8ABMR

been loving the cheap gas. SO happy I drive a V8. Cheap gas = Torque for everyone.

xanderES

iTrader: (8)

Im surprised no one has mentioned that the reason for OPEC to not decide to restrict production is that they are trying to make US horizontal fracking and drilling so unprofitable that the companies will go out of business.
Most of the OPEC nations have a certain price that they need to balance their budgets. Not sure what kind of backlash will come from it long term if they do not get back into the red.
Heres a great article about it http://www.vox.com/2014/11/28/7302827/oil-prices-opec

I have to say though as someone who lives in california I do welcome the short term lower gas prices.

mmarshall

California gas, in general, has been a rip-off for years...thanks mostly to the strict requirements of the state's CARB (California Air Resources Board), the state's notoriously high taxes, and the fact that the oil companies have to charge more for California-spec gas (and a few other similar-states) because it it too small a market to be cost-effective on a national scale.

(Sorry, Californians, I don't mean to be rude or insult you....your state admittedly has some great features, but gas is usually more expensive there than in most other states, though some tourist-traps and big cities in the Northeast and Midwest are also somewhat of a ripoff)