Former oil exec: $5-a-gallon gas on the way

You have to basically be out of your mind to believe that lower prices are a good thing during this time. The average American citizen in the last eight years has been so inundated with the cost of everything soaring that this money they’re now saving on gas now won’t be used to get put back into the economy. They’re either going to park it in their savings account, pay their bills or increase their debt. This is also further explained and concretely supported in the previous post “Americans: One Small Emergency Away From the Street“.

This oil war also means that many smaller companies that need to see oil over $80 a barrel, for example, to make a profit will go under. That means more unemployment. The only thing that will keep that from happening, and yes it is a given, is the buying out of these smaller oil firms by larger ones who can survive (but not forever) these low prices. Think ahead while you enjoy these low prices now, because they will skyrocket — along with the price of every other essential good.

Also, expect to see in typical fashion the simple minded will blaming ‘big oil’, their favorite after ‘evil banker’, and not see the bigger picture: There’s a war between Russia and the West that’s causing all of this. What is causing the war between Russian in the West is also another story all together. You can find that explanation in such readings as New Lies for Old, The Perestroika Deception, Red Cocaine or articles from expert analyst JR Nyquist.

What we’re watching now is tantamount to seeing beach goers watching the water recede half a mile and then proceed to walk further inward where the water once was thinking it’s fun as they collect shells, play and run around on the ocean floor. Yet what they don’t know is that is a precursor for a tidal wave only moments away and they will be caught up in it.

Enjoy your prices now, but be smart and use this to plan ahead in any way that is beneficial for you — i.e. storing gasoline for when the prices predictably go sky-high. A $250 investment at this moment might save you $750 in five months from now.

 

John Hofmeister attracted national attention in 2010 when he predicted that average U.S. gasoline prices would soar to $5 a gallon in 2012, thanks to rising crude oil prices. His forecast fell short, as the cost of filling up flirted with $4 in 2012, but never went higher.

Now, with gasoline prices at $2.14, their lowest level since May 2009, the former president of Shell Oil is issuing another warning, telling motorists that their joy ride may end sooner than they think.

HARPER: A fracking good story missed by the media

The United States has become the largest producer of oil and natural gas in the world, surpassing Russia and Saudi Arabia, according to the U.S. Department of Energy.

You may have missed this important story. That’s because the media virtually ignored it.

The Story Nobody Wants to Hear

There are many who can cite numerous reasons why another severe downturn is in store for our future: with a possible military strike against Iran, another financial crisis (this time a sovereign one), rising oil and gasoline prices, massive tax hikes hitting the U.S. economy in 2013, a run-a-way global printing press, to another weather related event or an act of God. Of the potential risks just mentioned the ones that concern us most are rising energy prices and the massive tax hikes due to take effect next year.

Full article: The Story Nobody Wants to Hear (Financial Sense Online)

Gasoline Prices Are Not Rising, the Dollar Is Falling

Panic is in the air as gasoline prices move above $4.00 per gallon. Politicians and pundits are rounding up the usual suspects, looking for someone or something to blame for this latest outrage to middle class family budgets. In a rare display of bipartisanship, President Obama and Speaker of the House John Boehner are both wringing their hands over the prospect of seeing their newly extended Social Security tax cut gobbled up by rising gasoline costs.

Unfortunately, the talking heads that are trying to explain the reasons for high oil prices are missing one tiny detail. Oil prices aren’t high right now. In fact, they are unusually low. Gasoline prices would have to rise by another $0.65 to $0.75 per gallon from where they are now just to be “normal”. And, because gasoline prices are low right now, it is very likely that they are going to go up more—perhaps a lot more.

What the politicians, analysts, and pundits are missing is that prices are ratios. Gasoline prices reflect crude oil prices, so let’s use West Texas Intermediate (WTI) crude oil to illustrate this crucial point.

Full article: Gasoline Prices Are Not Rising, the Dollar Is Falling (Forbes)