header

"There are two ways to learn lessons in life, the first is by observing and learning from the behavior of
other folks and second is by getting hit in the face with a 2 x 4 yourself. Both will help you learn the lesson,
but one is certainly less painful."
~ Jefe Smith from his book, LIFE, AMERICA and the ROAD

Gas Prices

On Rt. 66Everybody is just happy as can be about the sudden drop in gas prices. It helps all the right people – average Americans and hurts all the right entities – Russia, Iran and oil companies. It comes at just the right time, immediately before Christmas, so much of the windfall that Americans find themselves with will likely be spent on Christmas presents for their families. That’s not only nice for families, but nice for the American economy too.

Of course this windfall didn’t happen because the world suddenly decided to hand a gift to the average American. Once again we are wagging on the tail end of a dog named Oil War. The Saudi’s are trying to tamp down America and Canada’s fracking boom, which is producing a large amount of domestic oil and gas, which cuts into Saudi sales to America. They can pull their oil out of the desert cheaper than the fracking method and they are flexing their muscles to let the local oil explorers know there is more risk in their investment than they may be thinking. The Saudi’s also don’t like Iran much and are as concerned about Iran obtaining nukes as the rest of the world, so hammering the Iranian economy even harder than world sanctions is a nice side effect.

Does anyone really think this is going to last? Some of the largest economies of the world and of course the huge oil companies and all their subsidiary businesses are not real happy about the low oil prices and those are powerful folks who are used to getting their way. So at some point in that not too distant future, oil prices will go up and gas prices will rise again. In the mean time I am noticing that the car ads on TV have changed to big truck ads. The auto industry feels that Americans are dumb enough to think low gas prices will last forever and are peddling their most profitable vehicles, gas guzzling trucks in the middle of this temporary phenomenon. Unless you like $100 gas fill ups, you might want to take advantage of discount prices on smaller vehicles with greater fuel economy. You know what is coming.

Leave a Reply

Your email address will not be published. Required fields are marked *