Gas prices changed your mind?

[T Bell]

With gas prices reaching $3.29 where I live, I was wondering if anybody changed their mind about their build. I am in limbo. I guess it makes me loose motivation to build a blown, fuel injected, 700 HP motor if I really can't afford to drive it. And I damn sure ain't putting a 6 cyl in it.

[Rick Dorion]

I drive 2000 miles a year. I get about 14 mpg with the current motor(355) and am having a 410 built. If my mileage went to 10 mpg the extra cost would be less than $100 based on gas going up $1.00.

[jannes_z-28]

Over here we pay over $6 per gallon so for me it was an easy choice to go to LS1 power instead of the bigblocks 7mpg in citytraffic. Going on long tours isn't fun (economically) with that kind of mileage.


Jan

[Derek69SS]

I've been planning to get at least 20mpg out of my LT1/4L60 combo since gas was in the $1.75 range. I drive the car a lot, but my 13mpg worn out 400sbc has been hurting the wallet a little bit too much to really enjoy it like I want to.

Honestly though, I'm doing it more for the reliability and performance more than the gas savings

[evilzee28]

Nah, you've got it easy in Britain, petrol's now gone up to £5.00/imp gallon, exchange rate's approx $2.00 to the £, so we pay just under $10/ gallon

[907rs]

I feel for you guys over seas.

[XcYZ]

I hope Forbes is right...

PUBLISHING billionaire Steve Forbes has predicted that soaring oil prices will lead to a crash that could make the hi-tech bust of 2000 "look like a picnic".

Mr Forbes, publisher of Forbes magazine, said the price of oil, which peaked at more than $US70 a barrel on Monday as Hurricane Katrina headed for the US Gulf Coast, was unsustainable.
He said factors such as inflation and increased demand for oil from China and India accounted for only a small part of the price hike from $US25-30 a barrel three years ago.

"The rest of it is sheer bubble speculation," he said.

Mr Forbes, who was speaking at the opening of the Forbes Global CEO Conference in Sydney yesterday, said the higher the oil price rose, the harder it would eventually crash, creating more pain for hedge fund managers and their clients.

"I don't think it's going to go to $US100 but if it does the crash is going to be even more spectacular," he said.

"It will make the hi-tech bubble look like a picnic -- this thing is not going to last."

He predicted that oil would fall to $US30-35 a barrel within a year.

Mr Forbes's comments came as the price of oil eased following US Government comments that it could release some of its Strategic Petroleum Reserve.

The 700 million barrel stockpile is set aside for emergency use and could be used to counter oil shortages caused by Katrina's impact on the Gulf of Mexico, which accounts for about a quarter of US output.

After leaping nearly $US5 a barrel to $US70.70 on Monday, US oil futures retreated more than $US1 a barrel yesterday.

On the physical market, Texas Intermediate was trading at $US67.40 while London Brent Crude was up $US1.88 a barrel at $US66.75.

Katrina crossed the United States coast yesterday after closing the Louisiana Offshore Oil Port, the biggest US oil import terminal, and halting 92 per cent of normal Gulf output.

The market was nervously awaiting news of the impact of the hurricane last night.

Royal Dutch Shell reported that its production platforms in the Gulf of Mexico may have been damaged.

BHP Billiton's operations were expected to remain suspended for the next few days, company spokeswoman Emma Meade said.

She said the impact of the storm would not be known for several days.

Petsec Energy said its two offshore platforms were not in Katrina's direct path.

In Australian trade yesterday shares in BHP Billiton bounced back 44 to $20.47. Petsec finished 4 higher at $1.60.

Oil heavyweights retreated on profit-taking and after Opec indicated it would increase production to deal with any supply shortages.

[Ummgawa]

Something needs to give...and soon.

[67Sally]

One of the things that is working against a correction in the price of oil is that the current global deman level is getting very close to the current global production level......the capitalist system will keep oil prices high as long as this is the situation.
W.


EDIT: Addition of back up data.
Demand factor for oil of about 87 million barrels per day in 2006 and a supply of about 85 million barrels. The only way to get these two numbers to move to the same point is to let prices rise. A price rise will reduce demand and cause suppliers to produce more product.

[62fairlane]

turbo inline six, good milage, lighter, more underhood space