National gas price average to hit $3.50? Wanna bet?
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 10:52AM (5/25/2007)
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 :(
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DJ 11:02AM (5/25/2007)
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".....
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big L 1:12AM (5/26/2007)
It is already here in so calif...3.50 to 3.76 here in the Long Beach area.
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Calguy 11:15AM (5/25/2007)
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.
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jamie 11:16AM (5/25/2007)
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!
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The Other Bob 11:16AM (5/25/2007)
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.
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MikeW 11:35AM (5/25/2007)
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.
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Carletti 11:41AM (5/25/2007)
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.
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rrr 11:49AM (5/25/2007)
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
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Carletti 11:54AM (5/25/2007)
...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.
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Tim 11:57AM (5/25/2007)
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.
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John R 12:01PM (5/25/2007)
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.
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G Money 12:04PM (5/25/2007)
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!!!!
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PiCASSO 12:34PM (5/25/2007)
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
maxconfus 3:17PM (5/25/2007)
oh well, here goes... :-) are gas prices really the issue or is it that oil based transportation culture is the issue. Want a cesar salad and live on the East Coast of the US? That will be a ~3000 mile trip for the lettuce; and I live next to a large rural farming community. How bout some mums? Those will be coming from Canada. I was once told, not sure if true, that 40% of daily consumption goes to the production and transportation of food.
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Colin Smith 3:21PM (5/25/2007)
Supply and demand I fear.
We expect to be able to use more and more of a finite resource - and pay no more for it. For ever!
Hitting Iran would be beyond stupid, but I suppose we shouldn't be surprised if it happens.
We pay over $8 a gallon here in the UK, and the government has reintroduced a yearly over-inflation tax increase as a further incentive to use less/buy more economical cars. Add in car tax systems that penalise thirsty cars and you have a pan-European move towards greater economy.
It'll happen in the US too: wise Americans will, A) move nearer their work, and shops; B), buy more efficient cars, oh, and C), insulate their homes and buy energy efficient light bulbs and appliances. It all helps!
Rising energy prices are not unique to the US. The whole world is under stress on this one, with poor countries already being badly damaged.
Railing against the oil companies, government, big business and Opec - and all foreigners in general - won't help anyone. Government can help mitigate the worst of the inevitable difficulties, but only with the backing of the electors, and the willingness of said electors to acknowledge that the world is now entering a new era.
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Zo 2:18PM (5/25/2007)
Oil is used in many, many, many different things other than for gasoline!!
Almost all plastics, many chemicals and synthetics (nylon) and even is some cement types.
Consumption of oil is more than just making gas.
Part of cost for gas is taxes, which many states have raised, another part is E10 that is required in all summer gas. We should blame and fine the oil companies for not keeping the refineries working properly with maintenance -- that would be logical.
Gas prices are not set by the oil companies -- it is a world market price just like many commodities. For example, coal, while the US uses little in comparison, its price here is set because of the ridiculous consumption in China which produces about one coal operated powerplant per month. Commodities are not priced locally.
We are in a global market -- the world is now flat. Something that happens half way across the world impacts you here.
If overnight every car in the US magically reduced consumption by 20% overnight, it would have very little impact on the current price.
Go back to the history books and when the US had its industrial revolution and read about what was happening in Europe when the US was booming. Today, Brazil, Russia, India and China are the 800lb Gorillas of this new economic revolution and we are feeling the pain.
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dave 12:49PM (5/25/2007)
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 12:46PM (5/25/2007)
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
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Matt 12:58PM (5/25/2007)
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.
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