Erick Lihme said:
Fuel prices between $5-$10/gal could kill the economy.
I have thought the same thing about fuel at $3/gal. I used to think that a $.10 rise in gasoline prices was a non-issue, as it would not mean much money to even the longest-commuting drivers, but it meant a whole bunch to the independent oil producer that got a much better price for his/her production. When you add a series of $.10 increases though, it hurts pretty bad. Pre-Katrina gasoline prices were sub $2 in the Gulf Coast, i.e. $1.25 or so IIRC. I figured a bump to $3 on a supply disruption like happened in the Houston area would be short-lived, yet it has only been below $2 for a few weeks at a time for just a couple times since Rita. As much as I thought it would, it has not, except in specific areas perhaps, hurt the overall economy. Big trucks and SUVs still sell pretty well at the dealerships, too. This boggles my mind.
I put between 15K & 25K miles per year on my vehicle and (as a business owner) pay for my own fuel. If it went to $5 or $10, no question I'd have to do something else. Gas guzzler prices would likley tumble, too. It would be like the 1970's oil embargo days all over again. Suddenly, creative people and Detroit would focus more on economy to meet the demand. It would be a good thing for long-term environment, but a huge boon to the Arab states, Russia, and Ven's/Mexicans (oil exporters, in genereal), at least short-term. The worst part of the whole thing would be enriching the terrorist-sponsoring states even worse than we are already.
IMO, somewhere in the $4-$10 range, is enough pain to make the US entrepreneur act fast on getting a solution to market. What will it be? How quickly will it be adopted by the mainstream population? Will it be affordable for the ordinary workers? Will it really make a significant dent in the imports of oil to the US and exports of dollars to the rest of the world? I have no idea.
Separate thought.... I try to stay up on this and similar threads, but I may have missed this. Has anyone done any specific research on the cost/pollution created to re-charge electric vehicles? I would be interested to know if the average U.S. kilowatt that is used to charge an electric car is as clean as the internal combustion engine? I presume that it would be more efficient both economically and environmentallly, since it is generated in bulk.