Categories: american, barrel, energy, Europe, gas, Metrocard, oil, peak, price, refine.
Oil prices are well over $100 per barrel; the price will stay this high, and definitely get substantially higher.
This Tuesday, U.S. Energy Department reported that that there is a high probability that oil remains at an average of $101 a barrel this year. This was big revision of their Januaryâ€™s forecast. (reference)
For decades Europeans have paid relatively tremendous prices for their gasoline. Over $5 per gallon is something Europeans have been used to for a long time. Are Americans spoiled? (rhetorical). We have had cheap oil forever, and now that gasoline prices in the US are catching up to the rest of the world the American public is getting nervous. We really shouldn’t be getting nervous, as I have know for a long time that gas prices are well over $5 per gallon in Europe. I have been expecting increases in gas prices for a long time. Its simply supply and demand, and supply can no longer keep up with demand. According to the theory of peak oil, we are currently in a transitional phase where it is impossible to extract and refine enough oil to keep up with gasoline demand.
Even as American drivers complain about “gas pains,” they can count their blessings that they don’t live in Europe, where motorists pay more than twice as much at the petrol pumps. (reference)
Prices will get higher. Think about getting rid of your car and taking public transportation. In NYC that golden Metrocard is looking better and better. Have patients to wait for the bus, and you can save yourself substantial money on a weekly basis.