Climbing fuel prices

This headline caught my eye this morning

Oil reserves could be tapped to ease gas prices
ABC7Chicago.com - Jessica D'Onofrio, John Garcia - ‎19 minutes ago‎
The national average is up 33 cents over the past two weeks, and now the government is considering taking action. The Obama administration is looking at all of its options.

http://abclocal.go.com/wls/story?sectio ... id=7998746

While an easing of gas prices would be welcomed by everyone including me, I'm not sure this is the best track to take. Sooner or later we will have to face what the rest of the world (exclusive of the Middle East) has already faced. It's expensive to drive a vehicle. You've heard and debated this matter before, but we are rather fortunate in how little we actually pay for fuel. Allowing fuel prices to rise, may not be popular, is likely to hurt a great deal for the average American, but feeling that pain is the whip that will make us look to alternative energy use.

Your thoughts?

Pardon the cliche but " the cure for higher prices is higher prices". Leave the SPR in the ground.

I'm having trouble understanding the oil reserve vs gas price issue this time. Oil prices dropped, but gas prices are rising. So, are they or are they not related? It sounds like gas is going up because someone wants gas to go up. More oil won't solve that issue.

I also do not believe that rising gas prices will do anything but destroy our rural communities or, for the more adaptable ones, change them significantly.

We waited in line in the '70's for gas and made positive moves towards more sustainable transportation, but that movement was nipped in the bud. I am all for turning our backs on the oil/gas manipulators. I think that we need to do that, if not for the environment then because the industry is exploiting new markets in Asia and will leave us behind as having been tapped out (financially speaking).

That said, there really are not many options available to the common man. Bicycles? I understand that the Indian car company, Tata, has released an air-driven car that would be great for our cities. But, there is no availability that I see here. It takes the whole village to make the change with something like this in the face of a government and big corporations who do not want the change.

At what point does the government decide to put all that oil it's storing in salt caves on the market?

President Bush didn't do it, even when prices topped $4 a gallon. So what the use of storing it?

Surveyor wrote: I'm having trouble understanding the oil reserve vs gas price issue this time. Oil prices dropped, but gas prices are rising. So, are they or are they not related? It sounds like gas is going up because someone wants gas to go up. More oil won't solve that issue.

I also do not believe that rising gas prices will do anything but destroy our rural communities or, for the more adaptable ones, change them significantly.

We waited in line in the '70's for gas and made positive moves towards more sustainable transportation, but that movement was nipped in the bud. I am all for turning our backs on the oil/gas manipulators. I think that we need to do that, if not for the environment then because the industry is exploiting new markets in Asia and will leave us behind as having been tapped out (financially speaking).

That said, there really are not many options available to the common man. Bicycles? I understand that the Indian car company, Tata, has released an air-driven car that would be great for our cities. But, there is no availability that I see here. It takes the whole village to make the change with something like this in the face of a government and big corporations who do not want the change.

As I understand it, fuel prices have their root in refineries and their oil supply costs. Crude oil prices are driven by the perception of crude supply and demand, thus not always based on reality. Right now the perception of Libya's oil exports going off line is driving oil prices past $100/barrel, up over $20/bl over the past month. I also think that commodity traders have a general fear that more issues will crop up in the Middle East. (I'm certain they are keeping a close eye on Saudi in that regard even though the King has tried to avert issues by handing out money.) Those prices eventually reach the refineries. Local fuel prices generally are perception driven as well and tend to go up fast in anticipation of increased delivery cost and go down slowly after fuel costs have dropped.

What has Obama done to ensure a relatively cheap supply of fuel for this country?

kresspin wrote: At what point does the government decide to put all that oil it's storing in salt caves on the market?

President Bush didn't do it, even when prices topped $4 a gallon. So what the use of storing it?

Release of oil storage supplies is subjective and in part politically motivated. Reserves in storage are supposed to be for real emergencies, like when oil shipments are cut off entirely. I also believe (speculate) the oil reserves are there to even out the lows and highs of oil speculation cycles. Obama's consideration for releasing oil supplies may well be politically driven by the economic times we're in (poor).

conifermtman wrote: What has Obama done to ensure a relatively cheap supply of fuel for this country?

Gulf Drilling moratorium????

conifermtman wrote: What has Obama done to ensure a relatively cheap supply of fuel for this country?

Who says gasoline must be cheap? It's not cheap anywhere else in the world. Are you suggesting government subsidies to make it artificially cheap for Americans?