"Gasoline price spike has only just begun"

Submitted by jbr on Wed, 2008/03/19 - 10:03am.

The economics of passenger rail would seem even more compelling. Would the Orange route money provide more bang for buck completing rail track from Monterrey to Knoxville?

Link...

"profit margins have become so small refiners have little incentive to make gasoline."

That is a perspective I had not thought about.



Brian A.'s picture
"[The falloff in demand]

"[The falloff in demand] that occurs around $3.25 a gallon takes a lot of the mojo out of gasoline," said Kloza. "These prices are real speed bumps for the economy."

I hope that's correct. But had you asked some of these analysts a few years ago what demand would be like with oil at $70 or $80 per barrel, I suspect most of them would have missed their projections on the low side.

In England, the roads are still plenty crowded with gasoline at the equivalent of $8 or $9 per gallon.

Brian A.
I'd rather be cycling.

$8 or $9 a gallon. Remember

$8 or $9 a gallon. Remember they have a crude oil industry in the North Sea AND when they do buy on the world market, they buy with GBP a commodity priced in USD. One GBP in USD is $2.01.

True happiness is knowing you are a hypocrite. -- Ivor Cutler

edens's picture
That oil industry is

That oil industry is starting to suck wind, however:

Link...

gonzone's picture
Refiners profit margins may

Refiners profit margins may actually be slim but the major oil companies are profiting like the bandits they are. What is is now, 23 consecutive quarters of record profits each quarter topping the previous record?

And yes, the cost of a few miles of interstate would easily cover the costs of a great rail system. Would TDOT care?

"When the going gets weird, the weird turn pro."
Hunter S. Thompson

Cash strapped, and driving less

According to this article 75% of people are driving less because of gas prices.

Maybe TDOT will get the message eventually. The likely $1 billion the orange route would cost would be better spent in rail. Maybe even Alexander, Haslam, Beall, etc. Pellissippi Parkway extension funding would help more people being diverted to rail.

Link...

Consumption

I slashed my gas consumption by 38% on my recent trip the moment I decided to take the wagon instead of the truck. (love that 38 mpg saturn). Bubba did even better with his Prius. I noticed a lot of Matrii, fits & vibes on the road.

There were a lot of huge RVs at the Hunting Island park but a surprizing number of them were driven by Canadians. Says a lot about the dollar's value doesn't it?

____________________________________
Less is the new More - Karrie Jacobs

Factchecker's picture
You don't buy into the

You don't buy into the dieoff stuff do you, Edens?

edens's picture
Nope, after I posted the

Nope, after I posted the link I realized the source. The analysis of the North Sea depletion checks out, however.

While I don't doubt we're in for a heap of trouble ahead, I suspect most of the doom and gloomers oversell things considerably. Kunstler's new novel, for instance, looks interesting. But I'm not sure that we'll all be living like the Amish in the not too distant future.

Oh, and I changed the link to something a little less wacky.

"When the world is running down..."

Better Off

"I'm not sure that we'll all be living like the Amish in the not too distant future"

Porbably not but that doesn't mean we couldn't learn a few things from them ;~)

Link...

edens's picture
Yeah, but imagine the stamps

Yeah, but imagine the stamps it'd take to post to the blab and Knoxviews every day.

Who needs stamps?

Just send smoke signals Kemosabe ;~)

Hayduke's picture
What about the carbon

What about the carbon emissions?

edens's picture
Carbon neutral: Link...

Carbon neutral:

Link...

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