Gas prices - where does it end?

Oil continues to rise in the US - where is this leading?

With the national average breaking $4.00 per gallon for the first time in history all of us are wondering where will it end?  Are the analyists correct that gas will go up another $1.50?  If so can anyone buy gas for that price?

Sure you could take public transit more, if you have it in your area.  Many places in the United States have no public transit.  In the places that do have public transit get ready to be taken for a ride as the price goes up for them as well.

Look the answer is obviously to find an alternative fuel source but how can we move forward when we are so weighed down with high prices?  It is great to talk about alternative fuels but how many years will it be before the average person can leave their house because they are waiting at $7.00/gallon for the fuel we currently use.

Gas prices effect everything for obvious reasons.  Nothing you purchase got to where you purchased it from without using gas or diesel.  These people and companies that deliver products can’t lose money just to save the rest of us so prices go up.  What about the less obvious though.

A major newspaper reported today that police patrols were being lessened in certain areas because it is to costly to drive around.  This is great news when we already have people drilling into gas tanks of cars to steal their gas talk about a double whammy.  When we are in a fuel crisis and people can’t afford to live crime goes up naturally.  So it makes me feel great to know that we are less protected when we need it.

Do you have holes in your road that you were hoping would be fixed?  Guess what asphault is made out of… that is right oil is a major component.  Not only that but the machines that put down the asphault run on fuel made from oil.  CNN reported today that many areas are putting road work like filling in pot holes on hold due to skyrocketing costs.

That isn’t all though - we all know about ethenol taking corn to make fuel.  This of course made the price of corn go up.  When the supply stays the same and demand goes up prices rise.  When prices rise farmer’s decide it makes more sense to grow corn then wheat.  Weird how they didn’t realize that would lower the supply of wheat causing the price of wheat to go up.  Don’t eat much corn so you don’t care?  Look at your plate and tell me what on it didn’t once eat corn.  Did you have chicken, eggs, milk, beef, pork, corn chips, corn totillias, etc., etc., do you get my point?

Here is my prediction - gas will tickle around $4.50 before it gets better.  Things will get very tense then something will happen to bust gas prices back in the mid $2.00 range.  It may be a crash of the stock market and oil futures, it could be increased production, it could be more drilling, it could be a great alternative fuel is debuted that causes demand to fall, or it could be all of the above.  If that doesn’t happen my prediction is much more grim.

At $5.00 per gallon we will see people start to take to the streets.  There won’t be a huge outcry at first but there will be some riots.  These riots will lead in gas stations being burned down causing people to be even more fearful of gas prices.  Demand will spike because everyone will be afraid of a gas shortage.  This will cause the price of gas to spike and possibly shortages.  People will start hijacking gas trucks and selling gas on the “black market”.  People will freak out and nobody will know what will happen.  The government will have a hard time getting order back to the people, in fact there could even be a civil war.  Considering how divided we have become over the past decade or more a civil war could be triggered by an event such as this.

Now that is obviously a terrible scenerio but it easily could happen if something doesn’t give.  I am in no way suggesting anyone should take any of these actions - in fact I believe it would be a terrible thing and earge my readers to NOT do this but it could easily happen.

It is tough to get water from a rock, keep squeesing OPEC.

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About the Author

Joe

Joe

Joe has been living and working in Northwest Arkansas for almost 15 years. He brings his entrepreneurial point of view the news and relates them back to real estate and general markets. Joe has been a real estate agent for over two years, worked for Wal Mart for almost seven years, and along with www.InsideNWA.com he co-hosted a popular regional radio show of the same name.

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