The Truth is out there

Although Many believe different things if you allow yourself to ask the question someone out there will give you an answer. If your looking for that here you should seek medical help quick...

Tuesday, December 16, 2008

Short Lived Victory?

As this news post states it seems as though OPEC can no longer handle the decline in American gas usage. Looking into this story it seems to me that we as Americans have shown how huge of an impact we can have on certain industries. I do see it as odd though that in a round about way this latest trend in Gas pricing proves what millions of spam emails have stated. I’m sure that everyone who is reading this has received the countless emails asking for Americans to not buy gas on such and such a day and we would see a such and such result. Who would have believed that (at least in my area) over 2 dollars could be shaved off the price of a gallon of gas by the shear fact that we are travelling less? My question is that this a sign of things to come with fuel efficient (and fuel-less) vehicles, will we see a leveling off of the price of oil? Is it possible for Americans to continue to purchase hybrids and electrics (when they finally become reasonably available) despite the intrinsic American desire to buy the latest biggest and baddest vehicle in the keeping ahead of the Jones’s mentality? That question also brings up a follow-up question. What is the breaking point of fuel miser vehicles on the road that will show a consistent influence on gas pricing? How many millions of cars need to be on the road until we see the desired end result of super low gas prices? Of course this brings up the point initially started in this post, that when OPEC sees a trend that causes them to lose money they will keep cutting production until the oil “thumb” puts enough pressure on the fuel artery. I think a certain trend has started already that OPEC can not turn around quite yet, it is that there are enough of us that just flat out aren’t going out as much and are watching our fuel usage closer than ever. The raising of gas prices in times like this will only perpetuate the lack of American spending.