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Stock up on gas now or pay $5 later
12-28-2010, 08:35 PM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
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Stock up on gas now or pay $5 later
$5 for a gallon of gasoline in 2012 - Dec. 27, 2010
The former president of Shell Oil, John Hofmeister, says Americans could be paying $5 for a gallon of gasoline by 2012.
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Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
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12-28-2010, 08:45 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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How do I stock enough for my RV trip to Alaska? Pulling a tank trailer behind the motor home?
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"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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12-28-2010, 09:02 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
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Quote:
Originally Posted by NW-Bound
How do I stock enough for my RV trip to Alaska? Pulling a tank trailer behind the motor home?
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Fill up the black, gray and fresh water tanks, and add a tank to the roof.
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Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
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12-29-2010, 05:11 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 5,072
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I invested a some money in VG Energy. I think energy prices will continue to rise. I believe as the world's economies recover demand will outstrip supply.
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12-29-2010, 05:22 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,983
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Quote:
Originally Posted by chinaco
I invested a some money in VG Energy. I think energy prices will continue to rise. I believe as the world's economies recover demand will outstrip supply.
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A much better alternative to storing large quantities of gasoline - which doesn't store that well anymore.
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12-29-2010, 05:38 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 2,068
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It isn't an either/or question.
You will be paying for increases in oil prices if you:
Buy anything that was transported, the further the more costly or buy anything grown with fertilizer.
If you really want to minimize your person transportation costs buy electric as EVs that match your driving needs come to the market.
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"We do not inherit the earth from our ancestors, we borrow it from our children.
(Ancient Indian Proverb)"
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12-29-2010, 05:58 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,691
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Quote:
Originally Posted by chinaco
I invested a some money in VG Energy. I think energy prices will continue to rise. I believe as the world's economies recover demand will outstrip supply.
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Not if prices go up 70% they won't, can you say "double dip"?
TJ
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12-29-2010, 06:02 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,003
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Quote:
Originally Posted by teejayevans
Not if prices go up 70% they won't, can you say "double dip"?
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Yep. Sustained oil prices over $100 per barrel will pull the rug from under the current anemic recovery.
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Numbers is hard
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12-29-2010, 06:11 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 5,072
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Quote:
Originally Posted by teejayevans
Not if prices go up 70% they won't, can you say "double dip"?
TJ
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We will no doubt have another recession at some point.
If prices go up 50% I plan to be getting out of it. If not, then I can take the dividend and wait. The PE is 12.9 which is lower than its comparative index and lower than the PE on the 500 index fund.
Of course it is a sector fund and a little more risk comes with the territory.
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12-29-2010, 07:01 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 5,072
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12-29-2010, 10:32 AM
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#11
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,198
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Back in the 70s, when the first big oil crisis hit (long lines at gas stations, rationing by license plate number, etc.), I had a friend who decided not to put up with those long lines.
He had a 500 gallon tank installed in his back yard (buried several feet deep), and had fuel delivered to his home by the same trucks that delivered to gas stations.
This was a guy who stayed pretty close to home (small town in the midwest), and never did any long distance driving, so one filling would last him a long time. The cost of the tank and associated pump was significant, but he had plenty of money (owner of a successful business) and just hated the idea of not being able to fill his tank when he wanted.
I often envied his maneuver, but that situation really didn't last all that long, and after I moved away I always wondered if he kept filling that tank or went back to normal operations.
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I thought growing old would take longer.
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12-29-2010, 10:42 AM
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#12
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,580
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I doubt it. Crude petroleum prices > $100 and gasoline @$5.00 x gal will push the US into recession, weakening demand and bringing prices back down.
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12-29-2010, 02:49 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 2,068
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Quote:
Originally Posted by MichaelB
I doubt it. Crude petroleum prices > $100 and gasoline @$5.00 x gal will push the US into recession, weakening demand and bringing prices back down.
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As prices go up there is some decrease in demand, but not by as much as it used to. Also, non US demand is growing quickly. To a greater and greater extent oil demand is supported more and more by China and India.
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"We do not inherit the earth from our ancestors, we borrow it from our children.
(Ancient Indian Proverb)"
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12-29-2010, 03:20 PM
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#14
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,580
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Quote:
Originally Posted by Zathras
As prices go up there is some decrease in demand, but not by as much as it used to. Also, non US demand is growing quickly. To a greater and greater extent oil demand is supported more and more by China and India.
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Increasing demand is driven by China, India and subsidies around the developing world, but the US is far and away the largest consumer. Historically when petroleum exceeded 4% of total US GDP recession followed. The impact is likely to be greater now because economic growth is below historical average.
Sustained petroleum prices over $100 will drive the US into recession.
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12-29-2010, 03:25 PM
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#15
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Dryer sheet aficionado
Join Date: Dec 2010
Posts: 45
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Quote:
Originally Posted by braumeister
Back in the 70s, when the first big oil crisis hit (long lines at gas stations, rationing by license plate number, etc.) ...
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oh, the memories of the locking gas caps ....
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12-29-2010, 04:03 PM
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#16
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,299
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That, and when gasoline hit $4.00+/gal. While I do enjoy my full-size 4WD GMC pickup truck, I also realize that unless I hit the lottery it is the last one I will ever own.
An interesting read is $20 Per Gallon: How the Inevitable Rise in the Price of Gasoline Will Change Our Lives for the Better by Christopher Steiner.
While some may have issues with the effects and timing of his predictions, and there will be ups and downs along the way, I do believe that the day of $20/gallon gasoline is inevitable. The only question is when, hence I will never again buy a new full-size 4WD pickup truck. At $20/gallon a fill-up is $500 and that ain't gonna happen often.
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When I was a kid I wanted to be older. This is not what I expected.
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12-29-2010, 04:46 PM
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#17
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Thinks s/he gets paid by the post
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
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Quote:
Originally Posted by Walt34
...I do believe that the day of $20/gallon gasoline is inevitable. The only question is when, hence I will never again buy a new full-size 4WD pickup truck. At $20/gallon a fill-up is $500 and that ain't gonna happen often.
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In your lifetime? I just don't see that happening. Two generations hence, maybe even in my kids' lifetimes, but I don't see $20 a gallon gasoline in anything close to the near future.
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There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
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12-29-2010, 05:06 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Location: Palma de Mallorca
Posts: 1,419
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$5 a gallon? You guys crack me up. Please point us Europeans at anywhere we can get gas at less than $6.50 a gallon today (that's about the price in Luxembourg or Spain; more like $8.00 in France and Germany). And we drive pretty much the same cars you do nowadays too, unlike a few years back when y'all were getting 15mpg.
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12-29-2010, 10:48 PM
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#19
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Thinks s/he gets paid by the post
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
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Quote:
Originally Posted by BigNick
And we drive pretty much the same cars you do nowadays too, unlike a few years back when y'all were getting 15mpg.
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15mpg? You guys crack me up. The best my F150 will do is about 11mpg.
Ah, I'm sorry, I should take this more seriously. And actually, we do. In fact, here in the states we have been researching the applicability of european style cars for years. Here is some footage of our crack fez-helmeted ace engineers and test-drivers driving experimental clown cars.
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There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
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12-29-2010, 11:06 PM
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#20
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gone traveling
Join Date: May 2008
Posts: 3,864
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Quote:
Originally Posted by Leonidas
15mpg? You guys crack me up. The best my F150 will do is about 11mpg.
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Leonidas, that's what my old F-150 with the little 4.6L V8 was getting; the new Dodge Ram with the 351 CID Variable-Displacement Hemi is getting 17.5 AVERAGE in city/hwy driving, close to 20MPG on flat,open road. And it's the big crew cab with room for 5 people, the old Ford had bucket seats for 2.
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