By: Benedict Smythe
Submitted: 2008-08-08 21:28:55 | Word Count: 536
Unlikely! At this point, it seems like fuel prices will never go down. It has steadily risen from $ 1.90/ gallon to its present state of $4.50/gallon. Some people say that gas prices will go down in the coming months. Some same otherwise and predict that the only direction fuel prices will be going is up, up and up.
Lamentations
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The news today is a barrage of reports stating that fuel prices have hit new heights. Seeing people being interviewed at gas stations has become a regular thing. People are outraged by the impossibly high prices. But, the thing is – there is nothing to be done. Individual laments will only fall on the deaf ears of oil giants. They don’t care. They have their own crisis in their hands. And what crisis is that you ask? The problem is that Oil Titans are now facing the fact that OIL IS RUNNING OUT. They themselves cannot lower the price of fuel. If they did, they would soon find themselves filing for Bankruptcy.
The Optimists
Hold off your woes and listen to what the optimists have to say about the issue of fuel prices: They predict that fuel will go back down to at least $2.50/gallon after the 2008 Presidential election. Wouldn’t that be a dream? They say that the current heights in the price of fuel are only caused by the unrest in the economy. And as soon as the economy settles down, so will fuel prices.
The Pessimists
Those who see the world with a “the glass is half empty” philosophy have this to say: The price of fuel will never go down again. It is predicted that it will reach a dizzying $12/gallon by 2009. There is no space to back down because the oil companies themselves are being cornered. Oil is running out and there is nothing that they can do.
REALITY
Both sides have made good points. It is true that the current downfall of the US dollar and the US economy has added to the rising cost of fuel. But, that’s not all that’s causing it. As pessimists have stated, oil reserves are drying up and oil companies have no where to go.
So, will gas prices ever go down again?
Here is a more realistic answer: There is a chance that fuel prices will go down a little bit. Maybe it will happen with the appointment of a new American president. But a prediction of $2.50/gallon is very unlikely. Consumers would be lucky if gas prices dropped to $3.30/gallon. But the predicted drop in oil prices will not continue for long. After a few months (even weeks) costs will skyrocket once more. The $12/gallon prediction is highly plausible.
Oil Was Never Cheap
The thing is Oil was never cheap. It was only an illusion portrayed by the gas companies. They themselves didn’t realize it until recently. Sure, drilling, pumping, refining and transporting fuel may cost little, but the real damage is on the environment. Today, the world is in facing environmental problems that are stacking up like dominoes. It would take billions and billions of dollars and decades just to patch things up. That is the real price of oil.
