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Future Predictions
gas prices
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<blockquote data-quote="Kairos" data-source="post: 178189" data-attributes="member: 10263"><p>Gas prices have more to do with the diverse EPA formulations and the distribution system than anything else. Saudis are going to cut production to try to get prices higher, so that's going to hit you no matter what, but the Saudis glutting supply doesn't have as much effect on prices as you might think because the oil companies can play various games midstream in the oil industry, and they can always bribe the EPA to do something else like they did when they created special formulations for various regions of the country, effectively breaking up CONUS as a single oil market.</p><p></p><p>Also, future prices are highly contingent upon demand. A decimated middle class isn't going to drive much. If enough Americans switch to electric cars, then we could potentially just build a lot of nuclear power plants to run our transportation. That would slash demand and prices would fall. </p><p></p><p>In fact, I think peak oil is just going to be a matter of us massively subsidizing transportation so that everybody just uses electric cars. This will limit oil consumption in the context of transportation to things like aircraft, ships, and maybe still trains. </p><p></p><p>We could also build cargo pipelines to deal with shipping within CONUS. No need for trucks to do that stuff. </p><p></p><p>I can think all sorts of potentialities that would have massive impacts on oil prices. There is no way to predict what exactly will go down, but we can still predict a lot of the responses and technological developments to mitigate oil shortages.</p></blockquote><p></p>
[QUOTE="Kairos, post: 178189, member: 10263"] Gas prices have more to do with the diverse EPA formulations and the distribution system than anything else. Saudis are going to cut production to try to get prices higher, so that's going to hit you no matter what, but the Saudis glutting supply doesn't have as much effect on prices as you might think because the oil companies can play various games midstream in the oil industry, and they can always bribe the EPA to do something else like they did when they created special formulations for various regions of the country, effectively breaking up CONUS as a single oil market. Also, future prices are highly contingent upon demand. A decimated middle class isn't going to drive much. If enough Americans switch to electric cars, then we could potentially just build a lot of nuclear power plants to run our transportation. That would slash demand and prices would fall. In fact, I think peak oil is just going to be a matter of us massively subsidizing transportation so that everybody just uses electric cars. This will limit oil consumption in the context of transportation to things like aircraft, ships, and maybe still trains. We could also build cargo pipelines to deal with shipping within CONUS. No need for trucks to do that stuff. I can think all sorts of potentialities that would have massive impacts on oil prices. There is no way to predict what exactly will go down, but we can still predict a lot of the responses and technological developments to mitigate oil shortages. [/QUOTE]
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