Soaring crude prices make the cost of pretty much everything else go up too.

[Truthseeker]

Soaring crude prices make the cost of pretty much everything else go up too because we almost literally eat oil

The importance of oil to the U.S. economy has been a big concern since the oil crisis of 1973, when prices spiked, prompting calls to conserve energy.

Since then, the amount of oil consumed for every dollar of economic output has declined about 40%. In 1973, for example, it took just under one barrel of oil to produce $1,000 worth of economic output. Today, it takes less than half a barrel. That’s the good news.

The bad is that, because the U.S. economy is now 18 times bigger than it was in 1973, it requires a lot more oil to function.

That’s why the surging price of oil is now the main driver of inflation – and why the Federal Reserve is preparing for some big increases in interest rates to fight it.

 

[Revoltingest]

Adjusted for inflation, the price of oil hasn't changed as
much as many think.
https://inflationdata.com/articles/inflation-adjusted-prices/historical-crude-oil-prices-table/
Add to this the fact that fuel economy has increased
for cars, trucks, ships, planes, & rail. These factors
combine to blunt the impact of recent price increases.
The sky is not falling.
Moreover, I see a bright side....people will carpool more,
drive more efficiently, & buy fuel stingy cars instead of
giant land yachts....

 

[sun rise]

My decision to get a PEV a few years ago is paying off in spades since the electricity equivalent to gas is about $1.50/gallon when I recharge the car at night.

 

[exchemist]

Soaring crude prices make the cost of pretty much everything else go up too because we almost literally eat oil

The importance of oil to the U.S. economy has been a big concern since the oil crisis of 1973, when prices spiked, prompting calls to conserve energy.

Since then, the amount of oil consumed for every dollar of economic output has declined about 40%. In 1973, for example, it took just under one barrel of oil to produce $1,000 worth of economic output. Today, it takes less than half a barrel. That’s the good news.

The bad is that, because the U.S. economy is now 18 times bigger than it was in 1973, it requires a lot more oil to function.

That’s why the surging price of oil is now the main driver of inflation – and why the Federal Reserve is preparing for some big increases in interest rates to fight it.

Indeed.

But what this will do, I think, is act as a further spur to greater energy efficiency and diversification away from fossil fuels. So it will hurt economically but it may well do us and the planet a lot of good in the long run, just as the Yom Kippur war did in the 1970s.

One thing governments will need to do in the short term is take some steps to take care of the poorer members of society who will be hit the hardest, since basic necessities such as food and fuel for heating will get more expensive.

 

[Twilight Hue]

My decision to get a PEV a few years ago is paying off in spades since the electricity equivalent to gas is about $1.50/gallon when I recharge the car at night.

I'm not being deceived by the "it's cheap" scam. Any astute person can forsee what the future holds once the hook is cast and the time when they start reeling in the 'catch'.

First there is the expensive upfront costs of the vehicle, and the whopping cost of replacing the battery itself once it dosent hold a steady charge anymore.

I also don't even want to think how high electricity costs will skyrocket once people will have no choice but to buy electricity from clearly favored sources producing the power.

I also don't want to think further about the proposals to meter each and every mile you drive.

It's just one soaring headache going over to another soaring headache orchestrated by none else but the very wealthy who are very eager for its green cash cow to produce more milk for themselves and the common person being the cattle.

 

[Twilight Hue]

Soaring crude prices make the cost of pretty much everything else go up too because we almost literally eat oil

The importance of oil to the U.S. economy has been a big concern since the oil crisis of 1973, when prices spiked, prompting calls to conserve energy.

Since then, the amount of oil consumed for every dollar of economic output has declined about 40%. In 1973, for example, it took just under one barrel of oil to produce $1,000 worth of economic output. Today, it takes less than half a barrel. That’s the good news.

The bad is that, because the U.S. economy is now 18 times bigger than it was in 1973, it requires a lot more oil to function.

That’s why the surging price of oil is now the main driver of inflation – and why the Federal Reserve is preparing for some big increases in interest rates to fight it.

Check the cost per gallon in countries like Saudi Arabia and Venezuela and try putting that same logic to work.

 

[Revoltingest]

Dang....today someone gave me a nice early
vertical boring mill. It's in Minneapolis, which
means a 1300 mile round trip at 10mpg.
Free stuff can get expensive.

 

[stvdv]

New Adjusted for inflation, the price of oil hasn't changed as
much as many think.

In Holland we pay 2,5 euro per liter (for the car). I heard the US used to be much cheaper. Same price per gallon.

I would not be surprised if they make US prizes like in Holland. Good for business and it's not that Americans are more poor than we Dutches

 

[Revoltingest]

In Holland we pay 2,5 euro per liter (for the car). I heard the US used to be much cheaper. Same price per gallon.

I would not be surprised if they make US prizes like in Holland. Good for business and it's not that Americans are more poor than we Dutches

I find our fuel still quite affordable compared
to most of the rest of the developed world.

 

[stvdv]

I find our fuel still quite affordable compared
to most of the rest of the developed world.

IF prices triple in USA it's still cheaper than in Holland.

But I heard we are much cheaper when going to hospitals

American average income is 40.000, Dutch is only 30.000

So, you Americans indeed are still well off

 

[Truthseeker]

My decision to get a PEV a few years ago is paying off in spades since the electricity equivalent to gas is about $1.50/gallon when I recharge the car at night.

Yes, EV cars are catching up with gas guzzling vehicles in total cost. If fuel prices keep going up, that will be more true. My wife and I have had the same car since 2006 I think, and as we are old and don't travel hardly at all any more, this will be our last car. If our car goes kaput, we will adjust differently than paying for another car.

 

[Truthseeker]

Indeed.

But what this will do, I think, is act as a further spur to greater energy efficiency and diversification away from fossil fuels. So it will hurt economically but it may well do us and the planet a lot of good in the long run, just as the Yom Kippur war did in the 1970s.

One thing governments will need to do in the short term is take some steps to take care of the poorer members of society who will be hit the hardest, since basic necessities such as food and fuel for heating will get more expensive.

We'll see if in the short run if we get away from fossil fuels. Some are talking about more drilling for oil as a short term solution so we can get away from dependence on Russia. I the US, we don't get much fossil fuel from Russia, but that's not true in the EU.

 

[exchemist]

We'll see if in the short run if we get away from fossil fuels. Some are talking about more drilling for oil as a short term solution so we can get away from dependence on Russia. I the US, we don't get much fossil fuel from Russia, but that's not true in the EU.

Drilling is not a short term solution.

It will take Europe a year or two, I think. I understand Germany has 6 nuclear power stations they could run if they were willing.

 

[Truthseeker]

IF prices triple in USA it's still cheaper than in Holland.

But I heard we are much cheaper when going to hospitals

American average income is 40.000, Dutch is only 30.000

So, you Americans indeed are still well off

Yes, It's no doubt worse in the EU than here in America.

 

[Truthseeker]

Drilling is not a short term solution.

I don't think it would be a good solution. I don't in honesty know what the best solution is. I want to get away from fossil fuels. Also what we think would be a good solution is decided by us, but by politicians who are influenced by fossil fuel industries. I didn't know Germany has nuclear power plants left. I heard they were getting off of them. They have plants, but they aren't running right now?

 

[exchemist]

I don't think it would be a good solution. I don't in honesty know what the best solution is. I want to get away from fossil fuels. Also what we think would be a good solution is decided by us, but by politicians who are influenced by fossil fuel industries. I didn't know Germany has nuclear power plants left. I heard they were getting off of them. They have plants, but they aren't running right now?

Yup. They took an ill-advised decision to close them all after the Fukushima incident.

We will need gas for another decade or so while we ramp up renewables and nuclear so the fossil fuel industry is not entirely wrong. And gas is a lot better than coal. But I think we need to do more to use energy more sparingly as well. I don't see much government activity on that front.