If gas is going to be $5/gal in 2012 - what are you going to do to decrease the impact?

[LynneSin]

http://www.rawstory.com/rs/2010/12/fmr-shell-president-predicting-5agallon-gas-2012/

The former president of Shell Oil said he believes Americans could be paying $5 for a gallon a gas by 2012.

"I'm predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline prices," John Hofmeister said in a recent interview with Platts Energy Week television.

Tom Kloza, chief oil analyst with Oil Price Information Service, agreed that Americans would see $5 a gallon gas but told CNN that he did not believe it would happen in 2012. "That wolf is out there and it's going to be at the door...I agree with him that we'll see those numbers at some point this decade but not yet."

"The demand is still sluggish enough in some of the mature economies," he said.

I remember when I was house shopping back when gas was $4/gal. I knew that this was going to be the future so I was smart and I bought my house 2 miles from where I work. I also bought in the city because, god forbid, I have to find another job I'm right there by the Amtrak/SEPTA station and I could take the train to Philly and other points north for a job if need be. (they say it won't be until 2015 until we get SEPTA connected to Maryland and MARC). Today I fill up my gas tank about once a month and if price got too out-of-control, I am right by a bus stop that I could use to take the bus to work each day.

[TBF]

1. You make a good point about the infrastructure in this country -

I currently live in Houston. They have train tracks running all over the city, and they will tear them out in places to expand the roadways. I have never seen so many large vehicles in my life - and that is just in my little suburb. I feel kind of greedy sometimes having an AWD Suburu that probably only gets 25 mpg on the highway, and these folks all think they need Suburbans, Expeditions, Minivans, etc... to drive their kids back and forth. It's disgusting.

[RKP5637]

6. Same here. I fortunately don't have to

drive much anymore and use a mint town car at 18mpg city if you drive it right, and I am absolutely dwarfed by the Suburbans, Expeditions, Minivans, etc. in parking lots. I get almost 30mpg on highways, level, with cruise control on, V6.

[LynneSin]

14. I have an AWD Subaru too and although I wish it got better gas mileage

I feel I'm doing my part by not driving it everywhere.

When I had to replace my car this year I would have loved to buy a hybrid but it just wasn't very feasible pricewise. I was buying a car not because I wanted a new car but because some idiot totaled my Toyota Corolla and I had to replace it. Since I only had so much to spend I was quite happy to have found my Legacy, I do love that car!

But I figure I live close to work. I've met people who not only drive massive SUV but they bought houses over an hour from where they work. Those people are going to be in a world of hurt if gas goes to $5/gal.

[krabigirl]

36. Being close to work is a big one, I agree.

[TBF]

38. I don't commute either -

just drive the kids around our suburb - the schools are less than a mile away. I put so few miles on it that it seems wasteful to replace it.

[krabigirl]

35. I think there will be at least hybrid minivans in 2012..I still don't like minivans but

at least for the people who need or think they need the space, those seem like a better option since the gas mileage will be good. But I agree with you. I have a CR-V crossover that I've had for a while, and feel guilty about the mileage (about the same as the AWD Subaru I think). But then I see most other moms in my suburb having very large Yukons, Suburbans, etc., just to drive kids around. Not even considering the horrible gas mileage, I can't even fathom how hard those vehicles must be to turn or park. I have a hard enough time with mine! (I used to drive really small cars before I had kids.) I am hoping to downsize or just get a wagon, but I would like a hybrid.

[WCGreen]

2. Use the phone and the compuer more often for shopping....

Rely on the US mail more often...

[mrs_p]

3. bike everywhere. nt

[bullwinkle428]

4. Selling my 8 year old, 260,000 mile vehicle and buying

something with a hybrid or diesel engine.

[jberryhill]

47. Sell the 260,000 mile vehicle, but keep your 8 year old

Or at least wait until he/she is older and better able to deal with it.

[Obamanaut]

5. Gas has been that high, and higher, in many parts of the world for a long

time.

People here will adapt. Smaller cars, more bicycles.

[etherealtruth]

7. There's not a lot I can do

I live in metro Detroit ... there is (for all intents and purposes) no nass transit system. I live 30+ miles from work ... I don't earn nearly enough to live anywhere near where I work. Mercifully I drive a Ford Focus and it is a fairly efficient car.

I will have to cut back on my grocery choices (the cost of transporting food will necessitate this)as well on cutting back on other goods whose prices will be effected. I expect that sports fees will be increased for my children and would anticipate not being able to attend "away" games. my family and I will feel the effects (as we have in the past), but, as long as I keep my job we should be OK .... I really worry about those with even less options than I have.

[Denninmi]

31. I completely agree about the lack of public transport in Metro Detroit.

I live in central Oakland County. We pay taxes to support SMART, but I would have to walk about 6 miles each way to get to and from a SMART bus route. I realize that there are special services here, like dial-a-ride for seniors and the disabled, but I still resent the fact that the basic service doesn't exist for me, for all intents and purposes.

[michreject]

55. I live in Waterford

No bus service.

I get 10 mpg in my truck. If the gas goes to 5 a gallon, I'll just have to pay it.

[notadmblnd]

8. I will lessen the impact by staying home more. Hopefully a lesson will be learned by my son

and he will stay home more too?

[gratuitous]

9. God forbid we raise the federal gas tax

Much better to watch gas prices spike, and know that all that extra money will go to line the overstuffed pockets of Big Oil executives, who will undoubtedly buy a lot of swell stuff with it. Maybe they'll show it on teevee from time to time, and we can all enjoy looking at their fourth or fifth homes, private jets, or fancy yachts.

But raise the federal gas tax for the first time in 17 years, and use the money for something other than keeping a fatcat's mistress? Unamerican! By the way, if the federal gas tax went up 50%, how much more would you pay for a 12 gallon fill up?

A. Over $10
B. $7.20
C. $3.84
D. $1.08

[T Wolf]

12. My guess is $1.08 - with the fed rate at 18.4 cents per gallon. But boy would the baggers

and the cons raise a stink over that (on a $50 fill-up yet!).

Maybe they are just upset that the taxes would go to help everyone - they are hateful and selfish that way.

[gratuitous]

18. Yep, a little more than a buck a fill-up

And yet, the usual suspects who would shriek at "Higher taxes! ZOMG!" won't blink at paying $50 to fill their tanks. They'll shrug and say "Whaddyagonnado?" Additional gas tax revenue could go to so many things, such as improving regional public transportation systems so you didn't need to drive all the time, everywhere. But living in Upside Down Land, individuals get exercised at the idea of paying an extra $25 to receive $250 in benefit. Big corporations don't hestitate to spend thousands to get their candidates elected, knowing that they'll reap millions in benefits.

[T Wolf]

10. My simple solution is just to steal a car when I need to drive someplace. This also

eliminates parking hassles.

But actually, I take public transportation to work (have for almost 30 years) and don't drive much else. Grocery store is within walking distance. Hardly ever leave the house anymore anyway - everything costs too damn much.

Having a '98 Neon that STILL RUNS and gets good mileage is a plus. Plus, it is great in the snow.

Despite the hardships rising gas prices will bring, We here in the US pay far too little for it and our addiction has cost us much more than the needed price increase will. Only problem is that the excess money will go to the oil companies, not the government through higher taxes that would benefit all of us.

[godai]

11. Buy an electric car.

I've got a deposit on a Nissan Leaf but won't get it until late next year. I'd really like to get a Tesla S (shown below) but pricey and somewhat shakey, new car company. Still, haven't ruled it out. It'll go 300 miles on a single charge.

[LynneSin]

19. That's not the Fisker is it? They are building Fisker here in Delaware

It was a great win for our state after both the Chrysler and GM Auto Plants closed. UDel bought the Crysler plant but the GM Plant is now owned by Fisker and they will build electric cars here in our state.

BTW fun fact trivia time - Legendary Reggae singer Bob Marley use to work at the Chrysler plant in Newark Delaware.

[godai]

21. No, Elon Musk runs Tesla in California.

He sold Paypal and invested in Tesla, SolarCity and SpaceX.

[AC_Mem]

13. Memphis

It's kind of difficult here. We might see one bus a week around where I live. Most people drive everywhere and our main businesses are in the city with the big hospitals and law firms downtown.

I have a car that is good on gas mileage; when I replace it I will be looking for a car that will have EXCELLENT gas mileage or better yet - possibly a hybrid.

[Fumesucker]

15. My motorcycle gets 52 mpg on the highway at a 70 mph cruise..

I can get over 60 mpg on slower backroads if there's not too much stop and go.

My homemade trunk will hold four or bags of groceries, I've even had a complete desktop computer in it with mini tower, monitor and keyboard.

There is zero public transportation here and I'm about two miles from the closest grocery store, just about all my other shopping is done online or at thrift stores/Craigslist.

My recumbent bicycle will get used if gas gets too outrageous, it's just that there is nowhere safe to ride on the roads here, they are narrow and have no shoulders, nothing even remotely approaching a bike lane and the drivers are not at all used to seeing bicycles.

[Pool Hall Ace]

45. I would love to get a motorcycle

Do you have a pic you can post of the homemade trunk?

[Fumesucker]

50. I don't have a pic of the trunk but I used model aircraft building techniques..

It looks a lot like a very large mailbox, round on top with flat sides, ends and bottom but it's tapered, wide and tall at the front and narrower/lower at the rear.. The entire rounded top is hinged with a piano hinge at the front so it lifts up like a trunk lid from the rear. I also have a very bright LED trailer taillight on the back of the trunk to help my visibility. I designed the shape to help smooth out the turbulence at the rear, cut drag and slightly increase speed and gas mileage.

Here's a thread I put up when I first got my bike on the road, it has some pictures and a link to a Youtube video I made while riding, I also have several other riding videos on Youtube..

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=393x1641

If you'd like any advice on getting a bike don't hesitate to ask, you can PM me with any questions you might have.

The very first piece of advice I would give is that if you're not a good car driver stay off motorcycles because they are far less forgiving of poor technique or judgement than are cars.

[Pool Hall Ace]

51. If I do say so meselph, I am an excellent car driver ;-)

Always getting the big picture, scanning for inattentive drivers, road hazards, etc.

Thanks for the link! :D

[Fumesucker]

52. If you're truly interested in motorcycles, here is my favorite motorcycle website/blog.

Not really a site for beginners but this guy covers a wide range of topics for the enthusiast.

http://thekneeslider.com/

[Pool Hall Ace]

57. Oh, I am truly interested.

It's one of those things that I always wanted to do when I got around to it. With gas approaching $4.00/gallon, it's time.

Thank you for this link, too. :)

[arcane1]

16. I'm doing ok at the moment...

I walk to work and use public trans in a city, at least. Since an increase in fuel prices translates into an increase in price for anything that is delivered by truck, plane, or vessel, buying local is the #1 priority for me.

[guitar man]

17. Same thing I always do

Ride my motorcycle as much as I can :)

[LanternWaste]

20. Continue to carpool...

Continue to carpool (four of us... every morning. Driver has one week on, three weeks off). Continue to maximize the efficiency of my errands. Continue to walk across the street to the grocery store/movie theater/fast food joints/department sore. Keep my vehicle in as good running condition as I can (esp. tire pressure and reg. oil changes).

Takes app. $45.00 to fill my tank-- over the past six months, that one tank has been lasting me a month. All in all not too shabby, but I'm sure I'll be looking to increase my efficiency even more as the price rises.

[LynneSin]

22. $45 a month is about what I spend on gas too

It kinda shocked me because my Corolla was only about $33 to fill up then I remembered that I have an extra 5 gallons on the tank size in the larger Legacy.

I really want to get out of driving to work each day but my issues are 2-fold. First, I get car-sick something fierce and riding the bus would have me nauseous as hell by the time I got to work. But I am trying. The other thing is just logistics - my gym is a few blocks away from where I park my car at for work and there isn't really a convienient bus that can get me from the gym to my house. I figured since I'm only 2 miles away it should be fine.

[demosincebirth]

23. Buy a Volt

[Dreamer Tatum]

24. Buy a spell check program. nt

[totodeinhere]

25. I'm tired of inaccurate OP's like this one.

"The former president of Shell Oil said he BELIEVES Americans COULD be paying $5 for a gallon a gas by 2012."

He "believes it could be." That's a far cry from saying that it "is going to be" which is what you said in your OP. Any number of factors could cause the price of gas to go either up or down. The long term trend will probably be up, but there is no way of knowing for sure that it will be $5 a gallon in 2012.

edited for typo

[LynneSin]

28. I appreciate what you are saying but here me out....

You're right, this was the guy who runs Shell (or was it former).

But the concept is one we should think about. For what it's worth - gas will probably be more expensive in 2012 so why wait until then to solve the problem.

[delightfulstar]

26. Several things...

-Riding my bike or walking more (most of what I really need is available within a mile of me)
-Using public transportation whenever possible (and I live close to it)
-Getting a more cost-efficient/hybrid vehicle (I need to replace my current car anyway)
-Planting my own garden (saves money, and reduces the amount of non-local, trucked-in produce I have to buy)
-Being more efficient when I do use my car (planning my routes and errands to minimize trips)
-Buying locally-produced/domestically-produced goods whenever possible
-Using the internet for shopping whenever possible
-Getting more durable items that I don't have to go out and replace as often
-Using natural and/or renewable energy sources whenever I can (because fuel costs inevitably affect the cost of other energy sources, as well)

If we all took simple steps like this, it would have a big impact on our budgets, our society, and our planet. A little effort can go a long way, with enough people on board.

[Broderick]

27. Close the gas station down

really, that would be the catalyst to having to close down. less traffic, more tied up cash flow, and profit on that operation already stinks.

[flvegan]

29. Really powerful trebuchet.

I shall wear my reddest cape.

[taterguy]

39. +44-6

[uppityperson]

30. Putting in a larger garden as much of food cost is due to transportation imo.

[Lint Head]

32. I swear to damn goodness! This country has a frigging short memory.

The reason for the financial collapse was the price of oil and the speculation behind it. That was the main cause no one wants to talk about. No matter what propaganda you have bought into it happened in this order. Oil price increases hit first. Then companies, particularly small ones, had to stop doing business because the gas prices were prohibitive. Airlines and trucking companies had to cut back. Delivery of goods was negatively impacted. The speculators had a field day at the expense of a fragile economy. The housing market was a victim of bad mortgages, financial crooks and a government out to protect corporate interests. It will happen again if oil prices spike and stay high for very long.

[yourout]

33. If it does hit $5 you will see and explosion of growth in algae and Bio fuel production.

Corn and soybean prices will go through the roof.

Algae based biodiesel probably has the best chance to make an immediate impact as it could be used the commercial transportation fleet right away.

[SheilaT]

34. I live in a relatively small city,

Santa Fe, NM and I drive a Honda Civic. I could cut back just a little on some of the running around I currently do, but I'm only buying gas every other week as it is.

[Hello_Kitty]

37. Working at home I'm making far less than when I was 'gainfully' employed

But OTOH I don't have any of the expenses I had when I had to show up at an office. It's been nearly two months since I put any gas in my car and I also don't have to spend money on clothes or any other Keep Up With The Joneses crap.

[sarcasmo]

40. Only leave the house once a week.

[Initech]

41. I'm looking at getting a hybrid.

Probably either the new Kia Optima, Ford Fusion, or the Chevy Volt if I could afford one.

But seriously the speculators all just need to die in a fire. :argh:

[TheKentuckian]

42. Stop...scooter time! Maybe an electric assisted bike?

[taterguy]

44. Must be nice to live in a place where it never rains

Either of those options would set you back 3K. You'd need a second vehicle for inclement weather, or if you ever had to take a trip that involved getting on a highway.

Do you really drive so much that it would be worth it?

ps: I know you could find an electric assist bike on the Internet for less than 3K. Good luck finding someone to fix it if it ever breaks.

[GReedDiamond]

48. Back in June, I bought an electric bike...

...it looks like a scooter, but, legally, it is an electric bicycle.

It requires no DMV registration or operator's license, and does not need insurance, although I have full, comprehensive insurance on it, just like I have on my car.

It has a headlight, taillights, turn signals, horn, speedometer, rear view mirrors and storage areas. I can carry the equivalent of two bags of groceries in it.

It has a 20-30 mile range, a top speed of 25 mph, costs about 8.5 cents to charge, which takes around 4 or 5 hours, and plugs into a normal wall outlet.

Price, brand new, was $800, plus sales tax.

And if it "breaks," the place where I bought it can fix it.

[taught_me_patience]

43. I use about 100 gallons/month

So a rise to $5/gallon would be quite expensive. There is probably not much I could do about it, though.

[Creative]

46. Creative bookkeeping.

[david13]

49. Motorcycle. 60 mpg. BMW. dc

[SoCalDem]

53. My husband will retire & no longer commute

:)

[Mnemosyne]

54. A friend manages a Shell station and was told to count on $4 per by mid-2011. n/t

[Lydia Leftcoast]

56. I decided that I would move back to Minneapolis ONLY if I could find a

neighborhood that was within walking distance of all essential services and on a good bus line (by pathetic Twin Cities' standards). I already do walk and take the bus a lot. I would do more of that and use the car only for visiting my relatives in the burbs.

Even now, using my car more for convenience than necessity, I, too, fill the gas tank only once a month.

Some people say that they "can't afford" to live closer in and "have to" buy out in the middle of nowhere, but I wonder if that is true when you factor in commuting costs. For example, most suburbanites I know (including all my relatives) need to maintain two or three cars just to live a normal life. How many thousands of dollars more per year could they afford to pay for housing if they were down to one car or no car?

(My car, "inherited" from my late stepfather--actually, my mother gave it to me before he died, because he had Alzheimer's-- costs about $3000 a year to run. Since I don't have car payments, a new car would have cost about $6000 a year. Suburbanites should multiply that figure by the number of cars they have and figure out how much more a month they could pay for housing by giving up a car or two.)

[onenote]

58. Hofmeister is certainly getting the most of his 15 minutes of fame

You would think that $5/gallon gas in 2012 is a given. Except almost everyone who knows anything about the oil market says its pretty unlikely. Even Hofmeister merely said it could get to $5 in a "worst case" scenario. Yet, everywhere you look, the story is "$5 dollar gas coming"

I don't doubt that $5 a gallon gas is coming at some point. And in my household, we started changing our behavior several years ago. Both my wife and I drive hybrids that get between 30 and 50 percent more miles per gallon than we got with our old cars. Plus we car pool when we can, set the thermostat higher (in the summer) and lower (in the winter) than before, and generally are trying to reduce our carbon footprint.

But I do find it amusing how Hofmeister's lonely speculation has gotten played up by the media as a big headline grabber.