Someone was asking the other day if trading their gas-hungry Mustang for a hybrid Civic was a good idea. Essentially what they wanted to do was wager gas prices were not going down any time soon and could likely go higher. But you don't have to give up high-horsepower driving just to place a bet on future pump prices. BetUS.com will let you keep the 'Stang by taking your bet that we'll soon see a $4-a-gallon national average. Right now, neither yes or no is favored, both with money lines of -120 for an average gas price above $3.50 before 2008.
Or maybe you like a long shot. In that case, the site will take your wager on whether the Earth will run out of oil by 2050. Pessimists could make out nicely if the wells dry up in few years with a $100 bet earning $1,000. Even longer odds are on gas prices going lower. If scientists announce tomorrow a $4 gadget allowing your car to run on household waste (Mr. Fusion, anyone?) and the average national gas price plummets to less than $1 a gallon, your $100 bet earns you $15,000. That's a lot of cheap beer and banana peels for your future Delorean.
Cha ching!
[Source: BetUS]
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Reader Comments (Page 1 of 2)
Todd @ May 25th 2007 10:52AM
Almost a "sure bet". Add a hurricane in the Gulf of Mexico, and/or a quick strafing of Iran's infrastructure and you will instantly have a $4.00+ national average.
http://rawstory.com/news/2007/Report_Cheney_aide_clearing_path_to_0524.html
...meaning it will be over $120 to fill up my Suburban's 30 gallon tank :(
DJ @ May 25th 2007 11:02AM
It would almost be a relief to be at an AVERAGE of $3.50 in the Milwaukee area. Regular is now $3.55 to $3.69 and expected to be 18 to 24 cents more next week due to another refinery shutdown for "maintenance".....
Calguy @ May 25th 2007 11:15AM
Yup- $3.50 sounds like a treat. It's pretty much about $3.85 to $4.00 (ok, $3.99 and 9/10ths) here in the SF Bay Area.
A friend just interviewed a potential hire who was coming from a major oil company.. let's just say, her report is that lowering gas prices isn't exactly part of their long term business plan. They could drill Anwar, The Mall of America, The Grand Canyon, The White House rose garden.. and those prices are not coming down. Big oil didn't get this big being stupid. They know Americans will pay whatever they have to.
jamie @ May 25th 2007 11:16AM
SOLUTION:
2.8L V6 TwinTurbo, 24 valve, four OHC
All aluminum construction, E100 fuel (ie. zero CO2 emissions). 12:1 compression ratio
Max power: 400 bhp @ 5000 rpm
Max torque: 500 Nm @ 2000-5000 rpm
7 speed automated manual transmission with double clutch
All wheel drive
ABS, MBA, EBD, Electronic stability control
Fuel consumption: 10.6/5.9/7.7 L/100km
????
SAAB AERO X
Got my attention for sure!
The Other Bob @ May 25th 2007 11:16AM
Chances are trading in a car for one with better mileage will not pay off. The owner of the older car will likely take a bigger hit on depeciation than they will gain in gas savings.
I have added this up for even gas suckers like Yukons and it doesn't see to pay off.
MikeW @ May 25th 2007 11:35AM
The peak torque would have to be more than 500 meter-newtons because 400hp @ 5000 rpm is 420ft-lbs, 570 meter-newtons.
Stupid RFG, stupid E10 dillution (costing me 3% in mileage, for what), crappy high sulfur & low AKI.
You suck mega-oil.
Carletti @ May 25th 2007 11:41AM
My opinion is that OPEC is once again increasing its clout, especially with the war going on, a potential war with Iran on the horizon, and because of our problems with Venezuela. And I also think that there can be no doubt that oil companies are colluding to raise prices. We hear talking points from oil companies that "there aren't enough refineries" or that "demand is simply greater than supply." Bull. We have refineries that are in fact not used enough, according to a report by CNN, and I would argue that the Iraq situation is not enough of an impact on the actual oil supply to affect the real increase in the price of a barrel of oil. My opinion is that the oil market is not acting "fair" whatsoever. But we obviously cannot do anything about the latter because oil companies have their influential lobbyists, and citizens obviously cannot just boycott the oil companies.
But I don't think $3.50 will be the national average anytime soon. This thinking may seem ridiculous given the current price of fuel but like I said, the market is not behaving fairly right now and I don't think that oil companies want to set a memorable benchmark at $3.50 per gallon just yet.
rrr @ May 25th 2007 11:49AM
I bet if you all drove a slightly smaller car you would not be complaining.
Change that FUll SIZE SUV for a smaller or, or Accord for a Civic, or Camry for Corolla.
High gas prices are here to stay, you can blame Bush, Kerry, opec, Big Oil, Big 3..........or you can do something about it. All that money comesout of your own pocket
Carletti @ May 25th 2007 11:54AM
...The Accord I can understand, but a Civic, Camry, Corolla, or any other little car from Asia is a product I could never take myself seriously in. In fact, I would be more depressed at driving the latter 3 cars on a daily basis than paying my weekly gas bill.
Tim @ May 25th 2007 11:57AM
Gasoline prices will continue to slowly rise, with a few dips here and there to mask the increases, as long as we continue to consume at the prodigious rate we currently do. Our level of gasoline consumption has never, NEVER, gone down. The only possible way that we would see prices level off, is if there was actually a reduction in our consumption for several consecutive years, which, again, has never happened
The only way we will ever impact the oil companies is to use less oil, period.
John R @ May 25th 2007 12:01PM
I just wanna see a real slot machine gas pump. I would gladly go to a station that charges 3.05 (delaware/PA area) for a chance to get a free tank.
G Money @ May 25th 2007 12:04PM
Gas is still less than 3 bucks in jersey, HOLLER!!!
Im out in Chicago on business and on the limo drive from ohare to my hotel i saw regular at 3.74!!!!
PiCASSO @ May 25th 2007 12:34PM
Last weekend in Chicago, the gasoline price (Wicker Park) was a cool $3.89 USD/Gal. That's pretty much where it is here in Toronto at $1.10 CDN/L
dave @ May 25th 2007 12:49PM
Even here in the northern suburbs of Chicago (where I work; I live downtown), regular was $3.65 yesterday. All you can do is drive less if you can ... get a fuel-efficient vehicle if you're in the market for a new car, and use your god damn legs once in a while.
Guenther @ May 25th 2007 12:46PM
someone in Cali must be getting cheap gas, because the state average for CA is $3.42 according to AAA.
http://www.fuelgaugereport.com/sbsavg.asp
Matt @ May 25th 2007 12:58PM
Ahhh, gotta love my Jetta TDI. Diesel @ 2.77 + 50.7MPG=$54 savings per tank.
And those suggestion that we need to use less oil/gas to decrease gas prices obviously have no idea how the economy/supply and demand works. Decreasing demand INCREASES prices. As the price of gas goes up, the more profitable it becomes to explore other sources of oil. As the exploration takes place, more oil is supplied, then prices decrease. That is how it will work.
Want to really reduce gas prices? Get rid of the gas taxes and the environmental regulations that prop up the price of gas. Allow drilling in ANWR and on the coasts and allow one type of gas for the country (not the many different types for different regions). Those two things will go very far in letting the price of gas go down. But then, that's not politically correct either. So stop complaining about gas prices if you support those policies. That's the price (pun intended) you pay.
gwballin @ May 28th 2007 6:48PM
Uhh, no.
Decreased demand at price $x means less people buy gas, causing a surplus. Prices then go DOWN until a new market clearing price is reached. This is taking into account no change in supply since you did not take it into account in your post.
How many of your econ classes did you skip to not have learned that lesson? :)
ETR @ May 25th 2007 12:59PM
While we can argue that consumption in the US will most likely not decrease, even if it does it would not impact gas prices. We Americans seem to forget the reality of the world market. Oil consumption in the developing world is increasing at an astronomical rate (as is polution). While we certainly should do what we can here to keep things under control, we are fast becoming a minor player in the world market (think China, Old Russia, India, etc.).
Also, prices at the pump have not kept up with inflation over the years. If they had, we'd be paying much more than we do.
Then, of course, we could spend weeks discussing the entanglement of the government on both sides of the aisle and big oil...
Eric
Fabulo @ May 25th 2007 1:01PM
Paying off my car and keeping it saved me alot more than buying a more fuel efficient car. I get 23 mpg, spend around $250/month on gas. I don't think I can replace my car (which I like) for another that is just as good for $250/month of car + gas (payments)
You can argue that I wold not have to finance a new car, I can pay it cash and I would reply that I still would have to include the cash cost as depreciation.
A little bit of financial savvy goes a long way, you have to consider the total cost of ownership. Make decision rationally and not emotionally. Wait, we're talking about cars? Screw that, where's that 5.4 supercharged V8?
It's popular to bitch about gas prices, but in my budget I spend more on housing and food than on gas, and I would bet most people do.
Farris @ May 25th 2007 1:18PM
THIS is why I bought my TDI!
With 47 MPG, I go 600 miles on a tank, and don't have to settle for crappy Japanese "styling" of a hybrid. Plus, diesel is still about 3.09 in my area, while RUG is about 3.50.
Small diesel cars need to be given serious consideration.