$1.99 gas and WOT
#2
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.
Last edited by mmarshall; 11-28-14 at 08:30 AM.
#3
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.
#4
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.
#6
#7
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.
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#8
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.
#9
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.
#10
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.
#11
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.
#12
#14
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.
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.
#15
Originally Posted by xanderES
I have to say though as someone who lives in california I do welcome the short term lower gas prices.
(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)
Last edited by mmarshall; 11-29-14 at 08:33 AM.