Oil prices are up and you know what that means. Yep, gas prices are up. The question is whether you can survive paying $5 a gallon for gas at the pump. Here are some thought and tips on dealing with these gas prices.
Volatility
If these gas prices look familiar, they should. We've had them before - back in 2008. That was the last time when prices went up over $100 a barrel for oil. In fact, they went up over $140 for a bit of time. I'm sure we all remember what happened next. People stopped spending money and the economy went into the tank. The silver lining of the Great Recession was demand for oil dropped dramatically and so did prices. In fact, they fell to nearly $20 a barrel at one point.
Something similar will happen again. Pundits are suggesting we are ready for $5 a gallon gas. Well, they must be getting paid a lot more than I am because I certainly am not ready for it and I bet you aren't either. Enough people are not that we should see demand start to fall again soon and that will bring prices down as well.
Savings
Is there anything you can do until prices come down again? Yes. You just need to use some common sense in your approach to life. The first step is to get your car tuned up. Out of tune cars use excessive amounts of gas. Second, try to drive a bit closer to the speed limit instead of as though you are on a qualifying lap for the Daytona 500. Lead footing it around reduces the old bank account something fierce. Third, try planning out your day a bit better. Instead of taking three trips to run errands, try getting it all done in one. These are obviously basic things, but they add up and at $5 a gallon, they can make a real difference real quick.
Future
If I could predict the future, I would not be writing this. I would have invested in... oh, Microsoft, Google, Apple and Exxon when they went public. Sadly, this did not occur. Very sadly!
Today, however, we can predict the future. It is one with higher oil prices. China, India and other countries are growing like mad. They want the lifestyle we have and that means more energy needs. Put another way, they are going to need more oil and gas. We currently have roughly 300 million people in the United States and use 19 million barrels of oil a day. China has a few billion people in its population and uses less than 8 million barrels a day. As more of its billions start buying cars, what do you think will happen to oil prices? Yep, they are going to be going up.
Plan ahead. Start looking at alternative energy approaches to avoid these problems. More fuel efficient cars are the way to go for transport. You might also start growing a little garden because food prices will skyrocket along with oil since it is the critical to fertilizers and moving the food.
Can you survive $5 gas? Yes. More importantly, you need to start thinking about a future where oil prices are going to be much higher and take action now to minimize the future pain.
Patrick Sampson writes about peak oil for ThePeakOilQuestion.com.
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