Through The Static

May 14, 2008

Gaseous Clay: Cost of Oil (and we’re not talking Crisco) Breaks $120 a Barrel

Filed under: Economics,Environment,Gas,Government,OMGZCUTE,Research — bobbleheadedbob @ 6:23 am

This is totally inSANE in the membrane!!!  Remember the good ole days when we FLIPPED out when gas prices broke $2.00 a gallon?  What?  2 dollars a galloN?  You’s talking UNICORNS and CAPRICORNS, Sir Babblebot!  Unicorns — no, my dear readers.  UNOCAL?  Well, that might be another story.

gas pump

Alternet is foretelling a very real present in which we should Get Ready to Spend $6,000 a Year on Gas:

that's jacked up!

Don’t drive a car?  No worries, my self-absorbed friends, this still very much affects YOU. And ME.  Que romantico!

Two years ago a leading economist published a study provocatively titled: “What would $120 oil mean for the global economy?” Answer: a global recession, if the price stayed there for a year.

Now the future has arrived, with the United States and other nations getting a double whammy from both the mortgage crisis and oil futures hovering at $120 per barrel.


If oil prices stay stratospheric, the cost of fueling cars and planes could slash US economic growth up to 2.3 percent and global growth by 3.6 percent, says Robert Wescott, former chief economist of the president’s council of economic advisers and author of the $120 oil report.

YAY!  THE FUTURE IS UPON US!  Oh, wait.  Crap.

In 2003, with oil approaching $40 per barrel, the average US family spent about $1,900 (4.8 percent of its income) on natural gas, heating oil, and gasoline. But today at the $120 per barrel level, a family will spend about $6,000 a year or about 15 percent of total annual income, Wescott’s report predicts.

Compared with the oil crises of the 1970s, the US paradoxically is in a bit better, yet also worse, position. The good news is the US economy is less energy intensive — using only about half the energy it did in the 1980s to produce a dollar of economic growth. That should make it more resilient.

Yahoo!  FINALLY, some GOOD NEWS — and no, not the kind I shall be spreading door to door like Jeebus’s salesperson.  Though, it’s a bit difficult to see how $120 a barrel (triple what we saw in 2003), when we’re using only HALF the energy, oh, wait.  It only makes it “more” resilient.  Oh, crap.  I feel a gaseous clay developing in the pit of my bowels.  ::braces herself::

But the bad news is that

Wait, that wasn’t the bad news already?  ::waits:: Okay, I’ll let you finish.

But the bad news is that imported oil has risen to about 12 million barrels a day, about 60 percent of the 21 million barrels the US consumes daily. That financial drain at $120 per barrel is jamming the brakes on the US economy and inflating the trade deficit, economists agree. “The question now isn’t whether we’re going into recession, it’s whether there will be a soft landing … or we have a hard landing,” Ms. Jaffe says.

more of this


Congress’s move last year to raise vehicle fuel-economy standards to 35 miles per gallon by 2020 was a good first step — but not enough, he says.

In today’s slowly unfolding yet serious oil crisis, Mr. Lovins would slash 9 percent of the nation’s oil demand in one year with more than 30 fuel-saving measures. Among them:

Yeah, good luck on THAT one, CaLi-fornia!  That’s like asking a diabetic to stop injecting insulin.

  • Encourage mass-transit use by letting all citizens deduct the cost from their taxes. Require “parking cash-out” so employees can take cash instead of free parking at work.
  • Reduce speed limits to 60 miles per hour for light vehicles, 55 m.p.h. for heavy trucks. Expand HOV-lane use to include alternative fuel vehicles (AFVs), hybrids, and all-electric vehicles.
  • This bobblebot has decided to reside in the bowels of her underground lair until the radiation of the next nukyoolar fallout subsides and ADVISES FOR YOU ALL TO DO THE SAME.  This does not look good, Smee!  FLEE!!!  Eep!



    1. Dang, I’m pretty sure I remember when gas was less than a dollar a gallon. Definitely affects my driving habits now. My friend’s a DJ at a radio station, he gets free tickets to stuff…not too long ago, if he offered me free tickets to a show in SF (bout half an hour away), I’d be down to drive. But now, it better be a show I want to see if I’m driving.

      “Gas is high. There hasn’t been a drive-by in L.A. in 4 months.” -Paul Mooney

      Comment by disciplepete — May 14, 2008 @ 7:17 am | Reply

    2. I have also read that some older gas stations with older pumps cannot accomodate the rising prices because their counters do not go above $3.99 oer gallon or a total sale of $99.99. This is a having a major affect in rural communities and states have had to change their regulations to make it ok for them to 1/2 price their gas or manually calculate the sale.

      Gas prices will affect every part of the economy food, consumers goods…etc. all travel to get to us so they fuel increase will be passed on the to the customer.

      I do not think this country is ready for the hard times to come.

      Comment by green4u — May 14, 2008 @ 8:43 am | Reply

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