Friday, July 15, 2005
The Car Connection has a brief mention of future gas prices for America. I can't find a link so here is the quote in its entirety:
Higher Gas Prices Here for the Year
Gas prices will stay at current levels through September and may even go higher, with no drop in sight through the end of the year, according to the government's Energy Information Administration. The EIA, a unit of the Department of Energy, says that gas prices will average $2.25 a gallon through at least the beginning of September, about 35 cents a gallon more than it cost in 2004. Prices will remain high throughout the year and will likely stay at $2.20 a gallon through all of 2006 as well, the EIA adds. Gas prices have risen in the past two weeks to an average of $2.32 nationwide because of summer travel, the impact of Hurricane Dennis and the uncertainty of future weather in the energy-producing Gulf of Mexico.
Well then, that's certainly good news. Gas prices staying at that constant level means without a doubt that mankind has reached the point in its existence where it consumes as much gasoline as is drilled, as it is drilled. Those of you who own General Motors stock would be wise to immediately sell it, as this is as high as it will get until the company is sold to Toyota. Once the employee discount sales rush ends, new SUVs will not sell, even if they are the most beautiful, best handling bulky creatures ever devised. The only chance that gasoline prices will go down lies in the economic activity of the US and China. If either country goes into a recession, that will mean less gasoline consumption, and lower prices. But of course if the country is in a recession, it still won't be able to buy SUVs because it won't be able to afford them. With our own government making short term predictions like the one above, I just can't see any positive economic indicators for the auto industry on the horizon, especially that part of the auto industry that depends on sales of large trucks and SUVs.