The number one issue facing the United States security and economic stability is the rising cost of gas. As large oil companies record unheard of profits we have seen a dramatic price increase at the pump. In the past six months alone we have seen a dollar p/g increase. This kind of inflation over such a short period of time makes you ask yourself, "When will it stop, it can't keep getting higher can it?” Quite simply, the answer is yes my friend prices will continue to rise at dramatic rates until we stop feeding the oil companies.
Make no mistake about it, large oil companies want to make as much profit as possible, and they will continue to do so as long as there is a serious demand for it. This means that if it is needed, there is no limit to what they will charge us for it. In my opinion we could be paying as much as eight dollars a gallon by next summer if we continue doing exactly what we're doing. That being said, if we curb demand, i.e. hybrids, alternate fuels, than we could see the price plateau at about five dollars a gallon. Of course we will see the typical price fluctuations in the fall and in the late winter just to make the consumers believe that it is not rising that fast. One of the more serious aspects that are facing the cost of gas is the U.S. economy and the value of the dollar. Since the majority of oil is traded on the dollar we have seen that inflation plays an important role here. As the value of the dollar weakens, the cost of gas at the pumps will also rise. If the economy strengthens any, then we will see the prices might stabilize. Although, we might also see the oil companies claim that production is not keeping up. This has been a steady cry of theirs even though we have seen a slight decrease in demand. We will continue to see limited production of oil if consumption stays high.
However the extremely high prices of gas have caused the market to scream for vehicles with better miles per gallon. Many foreign car companies have begun to listen to what the consumer wants and have started making more efficient vehicles. Here's the funny part. The technology would probably be a lot further along if the oil companies hadn't paid off U.S. car companies in the 80's and 90's to not develop efficient cars. Therefore if we continue on this stagnant path of alternative development, we will see gas prices become incredibly high.




