The end of cheap gas? - Fiberglass RV


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Old 12-11-2016, 06:08 AM   #1
Raz
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The end of cheap gas?

This past summer we bought gas for less than $2 a gallon for the first time in years. In late August we travelled from one side of the country to the other. Gas was typically around $2.30/gallon. Currently gas can be had for $2.20 here in Vermont. But the days of cheap gas may be ending soon. Last week OPEC agreed to cut production. In today's news they have gotten non OPEC producers to go along. The intent is to reduce supply and raise prices. I think travelling is going to cost us more. Perhaps a lot more.
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Old 12-11-2016, 06:35 AM   #2
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Not good as we are 1500 miles from home at this time.
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Old 12-11-2016, 06:36 AM   #3
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If so, that ought to be a boon for the oil sands petroleum industry in NA and for Canada's economy especially. Perhaps the biggest casualty might be the current favorable exchange rate for Escape buyers in the lower states.

Since most on this forum have chosen smaller trailers and vehicles, we are better positioned to weather any increase in fuel cost. And no matter where on this great continent you live, there are wonderful places to explore while staying closer to home base.

The sky is not falling!
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Old 12-11-2016, 06:51 AM   #4
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Quote:
Originally Posted by Raz View Post
This past summer we bought gas for less than $2 a gallon for the first time in years. In late August we travelled from one side of the country to the other. Gas was typically around $2.30/gallon. Currently gas can be had for $2.20 here in Vermont. But the days of cheap gas may be ending soon. Last week OPEC agreed to cut production. In today's news they have gotten non OPEC producers to go along. The intent is to reduce supply and raise prices. I think travelling is going to cost us more. Perhaps a lot more.
Hi: Raz... Along with the cost of travel add the cost of most goods delivered by transport and farm produce as all these buy fuel too.
Enjoy it while you can. Last fuel I bought was $0.95/Liter CAD.
Alf S. North shore of Lake Erie
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Old 12-11-2016, 07:10 AM   #5
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We just returned from a car trip.
From Montreal Qc to Davie, Florida.
On the road, once we saw a place at $ 1.81 / gallon.
The majority was $ 2.20 to $ 2.30.

When they announced the reduction of OPEC exports, changes were immediately made to the gas stations.
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Old 12-11-2016, 07:15 AM   #6
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The prediction is for oil to rise to $60 USA / barrel by early summer of 2017 . This translates to $2.50 to $2.60 / gallon for gasoline.
We made a trip from Wisconsin to Jasper / Banff , Alberta , Canada last fall . We traveled approx 3500 to 4000 miles and consumed approx 250 US gallons of fuel. Based on the projected rise in fuel prices ,the fuel costs to make the same trip would increase $75 to $150 . Our total trip cost would increase by less than 5%.
This projected increase is not significant enough for me to park my trailer and stay home.
$2 gas and $5 gas help some and hurt others .
If the prices of crude oil rises to a reasonable and sustainable levels , it may lead to increased US & CD oil production and a rise in the Canadian $.
We are planning a trip to the East coast of the US , a trip of approx
5000 miles. We are in our late 60's and have never traveled East.
Staying home because gas rose 50 cents per gallon and waiting for the price to drop means we will probably never make the trip.

$2 or cheap gas was nice while it was here but my friends in the ND oil fields who are laid off probably have a different opinion.





l ,
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Old 12-11-2016, 07:42 AM   #7
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The only way to make all of their fracking operations profitable is to raise oil prices. Don't fall for the misinformation about why they are doing what they are doing. Obviously we don't need all that oil from fracking if what they are doing is to try to reduce supplies to raise prices. They made bad business investment decisions so now we are going to be made to pay for them. But at the time they made those decisions to open fracking operations the more recent legislation on fuel consumption reductions required by the automotive industry was not in place so they made the wrong bet and lost.
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Old 12-11-2016, 08:06 AM   #8
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Lots of ways to look at this, for sure. While the extra price I might pay at the pumps is tough to take, the value of my investments will rise, and the economy will rebound a bunch relating in more future work. This means I might be able to retire sooner.

It is an economic balance in many ways. Some will pay more, some will earn more, and others might stay on par.
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Old 12-11-2016, 08:14 AM   #9
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And the State that raised the tax. Took advantage of a good thing.

COSTCO and BJs have gas here a nickle cheeper than local stations and I use my Pentagon Credit Union Visa and get an additional 5 percent off. That really dulls some of the pain of high prices.
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Old 12-11-2016, 08:43 AM   #10
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Gas and diesel prices might go up. They always fluctuate. But if OPEC could raise the price of oil by cutting production, they would have done it a couple years ago. There's a huge glut of petroleum right now and it's going to take a lot more to absorb it than some shaky agreements between desperate countries, most of whom have been known to cheat anyway.

There's coal and oil companies all over the US who are filing for bankruptcy. The real problem for them is that wind and solar power have dropped in price so much that they're now cheaper. Why go to the trouble of drilling, pumping, transporting, and refining energy if you don't have to? There's a major windmill plant in my home state of Colorado and every time I see a convoy go by on the highway, it's a nail in the coffin of fossil fuels.

“The Stone Age did not end for lack of stone, and the Oil Age will end long before the world runs out of oil” --Sheikh Ahmed Zaki Yamani
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Old 12-11-2016, 08:48 AM   #11
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Lots of ways to look at this, for sure. While the extra price I might pay at the pumps is tough to take, the value of my investments will rise, and the economy will rebound a bunch relating in more future work. This means I might be able to retire sooner.

It is an economic balance in many ways. Some will pay more, some will earn more, and others might stay on par.
I agree with Moderator Jim's moderate view on this. If the price changes significantly, it will still be a slow process. Mostly because so many factors are at play, besides what OPEC says they will (try to) do. They don't always get their way. Soon there will be a great simplification of US government controls, that we can be sure about. I also believe the fracking process is being improved, definitely cleaned up, and cost reduced. The energy people don't sit still. The only thing that would scare me out of my wits would be an attempt to artificially control the gasoline prices. There are many good lessons to remember from the 1973 fiasco.
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Old 12-11-2016, 09:32 AM   #12
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Our oil should not be exported.
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Old 12-11-2016, 09:36 AM   #13
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I'm happy as long as it stays below $3/gallon, as memory recalls close to $5/gallon 10-12 years ago in Yosemite NP.
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Old 12-11-2016, 09:41 AM   #14
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Don't worry the Russians who are not a part of OPEC will CHEAT on their pledged cutbacks and not follow their agreement.

THEY ALWAYS HAVE CHEATED ON THEIR CUTBACK PLEDGES IN THE PAST & ALWAYS WILL.

The Russians are broke and they NEED THE MONEY!!!

A few other broke cheaters will also follow the Russians lead.

We will see a spike in oil prices in the near term do to oil traders and speculators. There is far to much oil available in the world that is controlled by cheater's and spend thrifts who WILL chose the money over their "Wink Wink" agreement!
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