newsobserver.com projects - Thoughts on gas prices... - Comments

Re: Thoughts on gas prices...

dandan14 — Mon, 05 May 2008 18:04:51 -0400

I'm so tired of the moaning about gas prices. Yes, it feels expensive because it was cheap for so long, but according to CNN Money, out of 155 developed countries, 110 of them have more expensive gas than we do in the US.
Source

Furthermore, we had a free-ride for a long time. The price of gas has gone up slowly...too slowly in fact. In 1918, the price of gas was about $.25 per gallon. Inflation adjusted, that brings it to $3.50 in today's dollars. Pretty much where prices stand now.

In the last 90 years, supply surged faster than demand and the price decreased (I'm over simplifying a bit here, but for the most part this is correct). Now, with India and China growing at staggering rates, the demand is catching back up with supply. I ran some quick calculations based on the oil consumption data from the CIA factbook.

Oil consumption per day
US 20.8 million barrels/day
India 2.438 million barrels/day
China 6.93 million barrels/day

Population
US 304 million
India 1.13 billion
China 1.32 billion

Oil consumption per person per year:
US 24.97 barrels per person per year
India 0.78 barrels per person per year
China 1.91 barrels per person per year

So just imagine what happens when China and India catchup to us. How expensive do you think gasoline will be? We better start looking for better and more viable fuel sources quick...or $4 gasoline will be just a fond memory we tell our children!

Dan
also posted on my blog here.

Re: Thoughts on gas prices...

nc4hill — Fri, 02 May 2008 14:31:41 -0400

All I know is, we need to get on top of this energy problem immediately. I can't afford anything else once I buy gas. I would like any immediate relief, so I could get away for a couple of weekends in the summer, and I'm voting for the candidate with the best energy policy, and the fighter's strength to get it done. Remember, all you latte liberals, Obama voted for the Bush-Cheney energy bill, Hillary voted against it.

Thoughts on gas prices...

suestock — Fri, 02 May 2008 11:54:43 -0400

Someone sent me the link to this YouTube video, which features Duke University behavioral economist Dan Ariely sharing his thoughts on consumer reaction to the increases in gas prices. I thought it was interesting, so I decided to share...