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Expect the Price of Gasoline to Skyrocket

TheWombat

Go Kart Champion
Location
Vermont
I have no real technical reason for not wanting an electric. After all, they can have stellar performance, can certainly be amazing handlers, and can be configured for a lot of really luxurious features. It's the entire vibe that gets me. I see these shots of the Tesla 3's interior and...it looks like a not-car. Which I understand is entirely what Elon Musk wants, for us as consumers to abandon the very idea of a "car" as we know it and embrace a "car as service/cell phone" future. And there is a certain futuristic, Star Trek Next Generation look to the interiors of some of these beasts. But, man, I _like_ my car to look like a car. I like gauges, virtual or analog. I like lots of buttons and dials. I like levers and pedals and stuff. I like the sound of engines, the rumble of the powertrain, the vibration that allows your body to sense handling and acceleration and all that.

I guess I'm just a 20th century industrial type of guy at heart.
 

BlueHen

Drag Race Newbie
Location
Delmarva
The price of gas isn't going to skyrocket anytime soon. The last oil skyrocketing occurred when we were still concerned about reaching Peak Oil Output worldwide. Through new shale-fracking methods and continued new discovery of shale oil fields, we are now far from reaching peak oil. Therefore, worry of supply has been allayed likely for several decades. This is really pissing off OPEC, as they have less clout. In fact, the Saudis are now trying to invest in Permian shale in Texas so they can try to regain some sway.

Meanwhile, I'll keep doing most of my miles in my 55 mpg TDI.
 

The Fed

Old Guys Rule
Location
Florida
The US hasn't needed foreign oil for 4 years or so. And we already have more refining capacity than we need. What will happen is, more oil will be sent here from foreign countries for refining and less of our oil will be needed. That will drive the prices up, because the oil companies want at least the same profit regardless of how many gallons of fuel they sell. It doesn't matter how much fuel they have, it's how much they sell. And if they have too much stockpiled, they will charge even higher prices.

The other issue is, where will the electricity to charge all these EV's come from.
 
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BlueHen

Drag Race Newbie
Location
Delmarva
Higher stockpile will lower prices, not raise them.

There is a latent effect of a stockpile in an elastic market though. When the prices go low, some production is usually shut down (see the Bakken fields a couple of years back) due to low prices, the stockpile dwindles, and prices start to creep up.
 

JC_451

Autocross Champion
Location
NJ, one of the nice parts.
Car(s)
2017 GTI Sport
The only way that a high stockpile would increase prices is through collusion.

Obviously Oil companies -are- pretty likely to collude at least passively (observing and matching the prices of the others vs. implicitly agreeing to a set price for everyone) but for this scenario to come to fruition they would have to actively agree to sit on the stock and sell it slow for high prices.

That's...probably a bridge too far.
 

The Fed

Old Guys Rule
Location
Florida
Higher stockpile will lower prices, not raise them.

There is a latent effect of a stockpile in an elastic market though. When the prices go low, some production is usually shut down (see the Bakken fields a couple of years back) due to low prices, the stockpile dwindles, and prices start to creep up.

They will slow down or stop production so it doesn't matter. At the most, it will be short term.
 

The Fed

Old Guys Rule
Location
Florida
The only way that a high stockpile would increase prices is through collusion.

Obviously Oil companies -are- pretty likely to collude at least passively (observing and matching the prices of the others vs. implicitly agreeing to a set price for everyone) but for this scenario to come to fruition they would have to actively agree to sit on the stock and sell it slow for high prices.

That's...probably a bridge too far.

Happens all the time with OPEC.
 
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