How high will gas go? Jim Cramer says...

[Stargazer]

I agree with you Paradox about it like water getting hotter and hotter and boiling more and more. I still say there is a limit but it will not be seen all at once since the price of gas is not going to $4-5 per gallon very quickly but inching its way there. Eventually you have to reach that limit. With minimum wage going up a lot of that money will be going towards the increase in gasoline rates.

The oil companies are just shooting themselves in the foot as this will cause alternative fuels to be released quicker.

 

[navychop]

Personally, I expect that at $5/gallon, people would start major efforts to reduce. Creative car pooling, van pools, etc.

It's my understanding that recent advances in converting oil shale to usable liquid fuels has progressed sufficiently that it is just about economic to start major investments in production. The new processes use microwaves. Nice to live so close to Canada with all their oil shale. The Canadian dollar may stay stronger than the US dollar for a long time to come. I still plan to visit there again, even if it will cost me more.

 

[navychop]

The oil companies are just shooting themselves in the foot as this will cause alternative fuels to be released quicker.

This is a good thing. Of course, the oil companies are energy companies and will likely dominate the new technologies as well. Especially for liquid fuels.

 

[fhsucade07]

I agree with you Paradox about it like water getting hotter and hotter and boiling more and more. I still say there is a limit but it will not be seen all at once since the price of gas is not going to $4-5 per gallon very quickly but inching its way there. Eventually you have to reach that limit. With minimum wage going up a lot of that money will be going towards the increase in gasoline rates.

The oil companies are just shooting themselves in the foot as this will cause alternative fuels to be released quicker.

And more hybrids... Gas has gone up 15 cents in two days in my location (to $3.10 / gallon) and I saw an interesting article in the paper today that indicates Toyota wants every vehicle on it's lot to be a hybrid by 2010. From my understanding (a co-worker that owns a Prius), the gas mileage is around 47 - 53 miles per gallon. My vehicle gets about 18 miles to the gallon, I drive it 250 miles a week (round trip) to and from work. With a hybrid, I'd only have to fill up about once every three weeks. Sure, $5 / gallon would still be pretty heavy, but if I were only paying it once every three weeks, I wouldn't complain as much.

Maybe that is part of the point behind the hybrid revolution with our "money-hungry oil-owning politicians". Just give us vehicles that give us more mileage and they can charge $5 / gallon or more because we won't have to complain as much about filling up as often at the high prices.

The real alternative probably still lies in alternative fuels. We just need the right people in office and the right minds coming up with the alternative fuel -- it can be done and, once it gets to a certain point, it will begin to happen more quickly. I'm with the other poster, though, there will still be existing problems with older cars, buildings, etc.

 

[fhsucade07]

This is a good thing. Of course, the oil companies are energy companies and will likely dominate the new technologies as well. Especially for liquid fuels.

Yeah... You know, five years ago, we were required in one of my initial university classes to place $100 in a sharebuilder account. I didn't think much of the project (and only recently has my interest in stocks began to rise). Regardless, I went for that many years not checking the account and, today, decided to check things out with a mailing I received from them (a booklet from Texaco). Texaco, by the way, was one of the two companies I invested in -- Anyways, from looking at the account (now worth $271), I wish I would have invested a WHOLE LOT MORE in Texaco.

 

[rcdallas]

Right now I'm paying $3.29 for diesel fuel, it's costing near $150 to fill my truck. It's getting ridiculous just last month it was $2.89 3 months ago it cost about $110 to fill it up.... I do get 21 miles/gallon 900 on a tank and I'm cutting my speed down maybe I can squeeze 24 MPG.

All in all here's a quote that sums it up:

"The price of fuel just isn't high enough yet for economics to drive fuel-saving behavior."

Two years ago I was running my truck off of straight 100% used vegetable oil (not biodiesel), I had my process down to $.05 / gallon minus the time and effort I put into the operation.

 

[tigerfan33]

If you look at it we are hanging on by a thread. Gas could go up with any disaster. Look what prices do when there is a threat of a storm or when a terrorist attack takes place. Just 7 or 8 years ago oil was $22 to$28 a barrel. Now it is pushing $80 and $90. We somehow have to get ourselves away from oil. Someone needs to come up with a product that the green people and the rest of the world can live with that will keep us going. I do laugh at the commercials about how BP or Chevron are working on alternative fuels. Give me a frigen break. Why in the hell would they invent something now that they are making so much damn money. Tax incentives. Yea right!!!

 

[navychop]

Right now I'm paying $3.29 for diesel fuel, ........Two years ago I was running my truck off of straight 100% used vegetable oil (not biodiesel), I had my process down to $.05 / gallon minus the time and effort I put into the operation.

OK, since I'm considering vegetable oil, I gotta ask: Why did you stop using veggie oil?

 

[rcdallas]

It was alot of things....I started collecting too much, I had 55 gallon drums all over..... I don't care how careful you are you will spill it. It's a major pain to deal with in cold weather. The smell of the used oil over time got to me. Eventually I just lost interest.

I did have alot of fun with it from concept to design, I built my own veggie conversion on my truck and my own little oil refinery. It took about 8 months to get the whole thing going, alot of reading and alot of trial and error.

If I were to do it again, I'd probably go with the biodiesel route and a VW jetta, not veggie and a Ford Powerstroke.

I will say you learn alot about your local restaurants of which ones NOT to eat at by looking at their oil.

 

[navychop]

Thanks.

I think. :

 

[supressed]

I think it will start going down not long after Bush is out of office.

 

[tigerfan33]

I think it will start going down not long after Bush is out of office.

Can you say "conspiracy"

 

[fhsucade07]

Can you say "conspiracy"

I can say it... I wonder if Bush can spell it? Simply put, Bush is making too much money off of us. However, there is a lesson to be learned from all of this -- never vote another oil-man into office. Of course, there are several lessons to be learned from Bush's tenure.

 

[supressed]

I can say it... I wonder if Bush can spell it? Simply put, Bush is making too much money off of us. However, there is a lesson to be learned from all of this -- never vote another oil-man into office. Of course, there are several lessons to be learned from Bush's tenure.

Actually Al Gore won the election so Bush's brother helped him cheat his way in.

 

[fhsucade07]

Actually Al Gore won the election so Bush's brother helped him cheat his way in.

Yeah, Al Gore could have, should have, and would have been President if not for Bush's brother. I'll bet our country would be in better shape, too.

 

[tigerfan33]

Something tells me that you guys also think that 9/11 was an inside job. People, look what an education can do for you too.

 

[supressed]

Something tells me that you guys also think that 9/11 was an inside job. People, look what an education can do for you too.

Do you think it was an inside job?

 

[tigerfan33]

Do you think it was an inside job?

Oh hell no. It is surprising how alot of educated people think it though. Just like Bush is making money off of oil. I guess Jimmy Carter made a hell of alot of money to along with everyother president. Ever heard of OPEC. That is where our problem is. The biggest problem is that we have been relying on oil for way too many years and something needs to be done, Soon.

 

[supressed]

Yeah,like uncap our own oil wells and get them running again.

 

[Tom Taylor]

New VW diesel in May, hybrid diesel not long after, 60 to 90 mpg. Honda diesel in Scotland now, here? Toyota, next generation hybrid. GM, Ford, working on a new battery for hybrid.