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Why are gas prices so high?  There's a simple answer and simple solution.

Why are gas prices so high?

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Gas prices around the world are going to trend upwards.  And gas prices in America aren't going to be any different.  The energy crisis has started and the USA is about to go through a profound and wrenching change.  As is the rest of the world.  We face an energy crisis never before confronted in human history.  Energy for transportation, manufacturing and everyday living will have to come from other sources than the one we use now, most likely less efficient sources.  Gas prices will just be a small part if it.  That beautiful black liquid with the fantastic Power/Mass ratio that was the base building block of our civilization is going to hit its mid-point, Global Peak Oil, and then slide into permanent decline and we will be forced to make major changes in our way of living.   Population will keep going up, the oil supply will keep going down.  Gas prices will skyrocket!!   Year after year, decade after decade, as demand and population increase, the supply of oil will continue to dwindle.  Until all the oil is gone.  It's time to start thinking about it.  Now!!! 

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You are at global peak oil

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Demand goes up--Supply goes down--Price goes --- Crazy !!!

 

". . the world has never faced a problem like this. Without massive mitigation more than a decade before the fact, the problem will be pervasive and will not be temporary."  U S Dept. of Energy report

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The price of just about everything will reflect this peak once it has been reached.  This point has been predicted by knowledgeable people in the energy community as being 2010 - 2015 though no one really knows for certain as different organizations have different ways of counting things.  Oil reserves spike in 80's

    Demand destruction from high prices will help stabilize gas prices as people change their ways of doing things and a recession with its slowdown in business activity (and therefore energy consumption) will alter the economic landscape but gas prices will generally trend upward.  How sharply remains to be seen.  Upward pressure on prices from rising Asian economies will be significant.  Gas prices will, over the coming years, keep hitting new plateaus where they will stay for a while, then surge up to a new high.  A new level of pain!!  

    Just as you don't have to lose all the water in your body to suffer the effects of dehydration, 5% will do that.  It's the same with oil.  The Party is over.  And when peak is hit, the law of supply and demand in times of scarcity and hysteria will begin to show its ugly face.  Then we will begin to change our ways.  It has already started with SUV's and trucks.  

    Fundamental changes in our economy and our society will will be brought on by the marketplace.  By 2030 the world's demand for oil is expected to rise from 85 million barrels a day to 120 million barrels of oil per day.  We would need to increase oil production by about 1.1 million barrels per day, each year beyond 2010, to keep up with demand.  Or find alternative sources of energy.  Right now we are in a consensus trance of denial fixated on gas prices and not on the sweeping changes that will come. 

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Start Thinking about it Now!!!

    The first to feel the economic effects of Global Peak Oil and rising gas prices will be the poor.  High gas prices will hit them hard.  They will be forced to give up their cars and start using mass transit, bicycles and tricycles.  The cost of energy will continually squeeze them because If it costs more to grow food and it costs more to haul food it will cost more to eat.  And that is just the beginning.         

    Oil and gas are used for a whole list of things basic to our way of life.  Not only is it used for fuel for transport of everything that moves from point A to point B, we use petroleum based fertilizers to grow our food.  Plastic products are based on petroleum.  Gas prices are only part of it.  This Petroleum based products List has a partial listing of products made from oil and natural gas.  You can see the extent to which Global Peak Oil (and peak natural gas a bit later) will affect the country, the economy and the world.

    There are a number of alternative energy sources out there. Coal, Natural Gas, Hydrogen, Oil Shale, Tar Oil Sands, Methane Hydrate, Nuclear Power, Solar Power, Wind Power, Geothermal Power, Hydroelectric Power, Biomass Fuels, Waste to EnergyEach has pros and cons.  It will take a combination of energy sources to keep our civilization going.  Many energy sources are not suitable for our need for powering personal vehicles.  There will be big changes in the area of fuel, vehicles and personal driving habits.  The Age of Biomass fuels, hydrogen and LEV's (Light Electric Vehicles) is coming.  And of course there will be new problems with new forms of energy such as ethanol from corn.

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     We are at the beginning of the end of the Age of Oil, Diesel and Gasoline.  Gas prices will reflect this.  And this end is coming about as the effects of global warming are just beginning.  It's going to be a long, rough ride.  One prediction is that gas prices could trend upward at over a dollar a gallon a year once Peak Oil is reached (though it should be remembered higher prices bring about a more conservative energy expenditure which will effect price). 

From lifeaftertheoilcrash.net 

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Gasoline surge leads to pedal power

Beyond Oil: Intelligent Response to Peak Oil Impacts A Dialog with the Experts

Policy Statement:
United States National Energy Supply

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how gas prices work   CNN Special Report

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Sept. 1, 2005  33 states top $3 a gallon
Gas prices wallop East Coast states, as spot shortages and panic buying overcome calls for calm and conservation.

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