Monday, April 28, 2008

$10 Per Gallon?

No way, you say?

Well, it's not just a shock headline but a real possibility according to this article:
Oil recently hit an all-time high of nearly $120 a barrel, more than double its early 2007 price of about $50 a barrel. It closed Friday at $118.52.

The forecasts calling for a jump to between $7 and $10 a gallon are based on the view that the price of crude is on its way to $200 in two to three years.

Translating this price into dollars and cents at the gas pump, one of our forecasters, the chairman of Houston-based Dune Energy, Alan Gaines, sees gas rising to $7–$8 a gallon. The other, a commodities tracker at Weiss Research in Jupiter, Fla., Sean Brodrick, projects a range of $8 to $10 a gallon.

While $7–$10 a gallon would be ground-breaking in America, these prices would not be trendsetting internationally. For example, European drivers are already shelling out $9 a gallon (which includes a $2-a-gallon tax).
Folks, I've never been the alarmist type so I even hesitate to post articles discussing these types of projections. Except that, my extensive research reveals that they are quite likely to be accurate.

Soon, major changes in where we live, work, worship, and play will be the norm. This is why locating to a smart growth community is so important.