The Oil Drum is reporting that capacity is flowing back into the previously shutdown pipelines across the souther US. This includes refined goods like gas and heating oil.
Theoretically, this should mean that gas prices should stop their incredible climb of the past week… do you believe they will?
Here’s my completely unscientific, utterly pessimistic prediction.
The Canadian average will be $2/L by for Boxing Day. It is currently sitting around $1.16.
The US Average wil be $3.25/Gal…. it currently stands at 2.61
And for comparison sake.. the average prices in Europe, in August, were around 1.07 Euros /Litre… that works out to about 1.61/L Canadian or $3/Gal in the States. (I believe I heard reports of 1.90 in France and Belgium since Katrina).
Since Katrina, prices in the UK have it the mark of 1 pound/L … or about $CAD2.25/L , $3.50 US/Gal
Just a little perspective for your Labour Day Monday morning.
Update
This morning the Oil drum is also pointing to a report in the Washington Post that reports on the status of refineries in and around the Gulf Coast. Many are already back or coming back online soon but up to 4 could be shutdown for many months and take 5% of the US’s refining capacity with it.
You are basically right. I also think that our gas price will rise dramatically overtime. I think we should start looking for alternatives like hydrogen. It’s also good to take public transportations.
However, I wonder if it will $2 mark by Christmas.
The one uncertainty is that we are not out of the hurricane season yet. But it would be remarkably bad luck if another hurricane finishes the job of disabling the oil industry in the Gulf of Mexico.
Public opinion and lawmakers may be sensitive right now to any profiteering in the present crisis. If oil prices go up by the end of the year (on a seasonally-adjusted basis), my guess is that the reason will be rising demand worldwide, which was increasing before the recent hurricane.
I think the real question wlll be whether gas prices “correct” themselves in the coming few weeks or if this new high that they’ve reached will simply be a new jumping off point for prices to push further.
I’m betting on the latter, but the accusations of profiteering have become quite something, so we might see governments put the screws down on the oil and gas companies to keep prices reasonable.
I sure wish I could get me some of that $2.61 gal gasoline. It’s at least $3.05 gal the last I looked here in Iowa. I’m resigned to paying +$3 forever and have increased our family’s gas budget by 50% for the foreseeable future.
I’m just glad I’m starting a carpool this week that will hopefully last the semester. they’ll be paying my gas bill.
Chris