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Avgas Where is the ceiling?
On Thu, 20 Apr 2006 13:38:12 -0400, "Juan Jimenez"
wrote: "Doug" wrote in message roups.com... There is no limit really. Name something else you can put in a tank and burn that is less expensive. Alchohol? Biodiesel? Electric? Right now, all of those are more. There is a pretty good chance it will go back down, SOME. But I doubt we will ever see it under $2 again. That's what they were saying in the 70's during the oil embargo... It will come down. This is a whole different set of conditions than what we saw in the 70's .. Yes, the price will cycle through the seasons, but more than likely the low is going to be at least $2.75 and more likely $3.00 with the increasing demand. Remember that when inflation is taken into account we are only paying a few % more than we were back in the early 70's. *Only* and I emphasize "only", if we reduce the amount we use and keep it there will prices come down. However it is in the best interests of both the environmental and industrial groups to see the price go to $3.50 and stay there. That is where alternative and environmentally friendly fuels become economically competitive on a large, or nation wide scale. IF people would change their driving habits so they use 1/3 less fuel we wouldn't even need to import the stuff to make gas for cars. Currently, if I recall correctly, the overall MPG average is about 21. If the average were raised by 7 MPG we'd have reached that goal and it could be done easily. IF people only used cars and trucks (that includes pick-ups and SUVs) the size they *need* we'd be there. *Most* people can cut their driving far more than they say they can. They can car pool, and not make 5 trips a day into town for the kids basket ball, base ball, hockey, soccer, dance, gymnastics and what have you by planning. BUT people are going to continue to drive monster trucks, SUVs and Hummers because they want big and powerful even when they don't need it. Unfortunately most of those driving the status symbols can afford the higher prices. People are only going to cut back on their driving where it is convenient. They aren't going to car pool, or set up scheduling to get the kids to practice unless it is convenient, or unless they are forced to do so by high prices or availability. Back in the 70's we ended up with a very good start toward conserving energy. Smaller cars (mostly imports to begin), car pooling, mass transit were actually working, but then gas became plentiful and the price went down and here we are., Taking inflation into account, the vast subsidies to industry and I see gas prices cycling but with an ever increasing average. I think Canada may be headed in the right direction with the Hemp approach as it is far more energy efficient than producing alcohol from corn. It costs considerably less to produce and makes about twice as much alcohol. Sounds like a winner to me and currently most of my farm is corn although I just rent it out. What happens to gas prices if we have another hurricane season like last year with the gulf and gulf coast getting badly beat up? I'd bet that sooner or later they are going to have to move the refineries that are now on the gulf coast to better locations. They may have to move them just to keep them on the coast. Roger Halstead (K8RI & ARRL life member) (N833R, S# CD-2 Worlds oldest Debonair) www.rogerhalstead.com *** Posted via a free Usenet account from http://www.teranews.com *** |
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