Monday, August 21, 2006

Gas under $2...and then you wake up...

Tamara @ Banktrate asks "Will American motorists ever again see gas under $2 a gallon?" She finds that some experts say "no" over the short term. They point out that it's due to the recent history, along with the current economic and geopolitical conditions. But over the long term it's a definite maybe. An expert says that if the U.S. became serious about investing in alternative fuel sources, oil producing nations would cut the price of oil in half! The present prospects for alternatives are Biodiesel, ethanol and hydrogen. But this year Saudi Arabia announced that they will be trying to get to it's "hard to reach" oil reserves. It's said that "the oil is heavier than that which is currently used, and it requires special equipment to get it out of the ground and to free it from impurities." If the they are successful, in four or five years, they might have much more oil coming online. Other options are the oil sands of Canada, an area in the northern part of Alberta. But that spot as well will have oil that is hard to reach. Many projects have been started to increase the global supply. "A major shift in the global economic climate could also cause gas prices to trend downward. " One of the main reasons for higher gas prices is an increasing demand for oil. They say that American consumers and car buyers can play a role in gettnig gas prices to decline. Interesting...

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