Gas prices are on a roller coaster ride and we may think $3.50 a gallon is a great price in the future. If crude hits $150 a barrel, we could be looking at $5 a
gallon or so for the retail price of gasoline. That's based on TODAY'S $3.73-a-gallon national average and the rule of thumb that,
for every $1 increase in crude oil, the pump price rises 5 cents a
gallon.
If crude hits $200, the retail price of gas jumps to $7.52 a gallon. (Plus or minus a few cents) To fill my 20-gallon gas tank on my Suburban would cost $150!
Gasoline at $7.50 a gallon is something nobody should go into
denial over because there are going to be big problems from prices at
these levels.
Will there be any U.S.-based auto manufacturers left? The answer depends entirely on how fast they can transform their product lines. Chrysler is in deep trouble already. That probably means more stress for the Midwest.
Will there be any domestic airlines left? This means big troubles for cities where these airlines operate hubs that generate thousands of jobs like Atlanta, Cleveland, Newark, Houston, Chicago, Denver, Dallas, Memphis and Minneapolis-St. Paul.
How will big convention cities survive? Places like Las Vegas, New Orleans, Atlanta, Chicago, New York, San Francisco and Houston have thriving convention industries, all built around the capacity of airlines to transport conventioneers to and from the destinations relatively cheaply. Emphasis on the word "cheaply."
How will tourist destinations like Florida or Hawaii cope? 
Sales of homes in outer suburbs are falling and not just because of the credit crunch and the subprime mortgage mess. Look at the stock prices of U.S. airlines, down 90% in the last 10 years.
Many commentators have wondered at the ability of Americans to grin and bear higher gas prices. But I'm way past grinning and bearing it. It's just gotten expensive. I read that over the first four months of 2008 gasoline has cost the USA $757.24 million a day more than in the first four months of 2002.
That’s more than the estimated $720 million a day spent in Iraq....
hmm thinking to buy a bike a electric one. So will bring me where i want around. No vacation for me at the price of the gas.
Posted by: Louise7 | May 24, 2008 at 02:31 PM