Fuel cost

Exactly And whatever they do, it will have to be uniform in its decision

I believe it is safe to say if gas prices double (very likely) then the school systems will have some very quick and difficult decisions to make....something they have not proven they do well.

I don't see car pooling as an alternative. In this litigious environment we are in, schools, in my opinon, won't risk the potential consequences of private car pooling.

 

At some point things will fall (sounds like the housing market)

In a similar way, oil prices should again fall similar to the housing market did recently. Remember when the cost of housing was going up at dramatic rates and the cost seemed to be a lot more than what it was worth - well what happened?

Back in 70s during the energy crisis, oil shot up to a whopping $40 / bbl but with conservation measures that reduced demand, the price dropped back to around $15 / bbl.

So you know, it typically costs less than $60 bbl to produce so all these speculative pricing futures are doing the same thing as the housing market. But with all the high prices, conservation measures are kicking in and other supplies are being developed (even some looking at making it from coal at about $70 / bbl).

So TOTO, we have to deal with the wicked witches of New York Wall Street for some time, then we can get back to Kansas from the Land of Oilz

 

Home sweet home

SO Braves and his puppy will have a happy homecoming???

 

The demand for oil far exceeds the supply, "China and India account for a 70% increase in the demand of oil consumption in the last two years" according to a report in the NY Times http://www.nytimes.com/2007/11/07/business/07cnd-energy.html.

At this time, there are no counter measures being considered or discussed in the Legislature.

I remember the 70's when everyone fretted about the energy crisis and the need for alternative fuels...geez, I'm still waiting for those changes.

 

Demand does exceed current supply

Same thing happened in housing and oil previously. For housing, the economy was looking good and with low interest, everyone wanted housing (first and second homes) however, developers at the time could not keep up with demand due to time required to permit and build so prices go up. Over time demand reduces and supply is greater than demand.

The current demand (believe China and India subsidize cost) is greater than supply but supply could easily be greater if Russia and other countries simply operated efficiently. Also with anticipation of higher pricing, others will start developing more fields (like in early 80s) and developing from other sources. This combined with conservation (interesting to see how many go cart cars are starting to appear on the roads) will bring supply greater than demand. As stated before, actual cost to produce oil is still below $60/ bbl. So at some point, price will get more in line with cost instead of 200%

 

I remember but even with oil reducing in cost gas stayed. The only thing that changed was supply. And this was in a time that China used less. Today they have the dollars and are paying it. So even with reduction of demand I see prices hold steady at aroun $120 or so and gas staying above the $3.00 level. To many willing to pay. Everyone with money is out for the buck.

 

who needs Oil

check out Honda's new car http://automobiles.honda.com/fcx-clarity/ . Since a previous post talked about elections, I nominate that Braves lease several of these vehicles along with buying several home liquid hydrogen stations and loan them to all his TPR friends

 

Hear, Hear to gkg!!!!! I'll be glad to loan them (at a very reasonable cost) to all my TBR friends...okay friend....okay to anybody that wants one.

 

Even though we are in a struggle with high gas prices it is good to know when parents or spectators see the field and hear the gloves pop and ping of the bats everything else goes away. That is the great thing about sports at all levels for that two or three hours you forget about high gas prices or the economy and all you do is enjoy the game.