'Squawk Box' Guest Warns of $12-15-a-Gallon Gas

It may be the mother of all doom and gloom gas price predictions: $12 for a gallon of gas is “inevitable.”

Robert Hirsch, Management Information Services Senior Energy Advisor, gave a dire warning about the potential future of gas prices on CNBC’s May 20 “Squawk Box”. He told host Becky Quick there was no single thing that would solve the problem, due to the enormity of the problem.

“he prices that we’re paying at the pump today are, I think, going to be ‘the good old days,’ because others who watch this very closely forecast that we’re going to be hitting $12 and $15 per gallon,” Hirsch said. “And then, after that, when oil – world oil production goes into decline, we’re going to talk about rationing. In other words, not only are we going to be paying high prices and have considerable economic problems, but in addition to that, we’re not going to be able to get the fuel when we want it.”

-snip-

http://www.businessandmedia.org/articles/2008/20080521145247.aspx

Everyone get ready to bend over and grab your ankles...

This country will cease to function if/when gas goes that high.

And an $8 minimum wage.......

It was Mad Max, the feel good hit of the summer of 1980.

and T Boone Pickens will be really rich and laughing his corpulent ass off.

Once it hits $8 or $9, many people will no longer find it profitable to drive to work, the tourism industry will fail, marginal air carriers will be forced out of business, trucking companies will go under.

Many auto dealers are already on the skids. This will put a nail in the coffin.

They seem to be kicking our ass economically.

:shrug:

$16 or more. It wont just be our prices rising, it will be everyones.

Part of the problem is the sinking dollar. Even if the price of gas had gone nowhere in Europe, our gas would have doubled relative to theirs.

Last time I was in Germany, I paid 3 euros for a beer -- that was US$2.60. Today, that same 3-euro beer would be US$4.80. The price to the Germans would be the same as it was before.

1. Most European cities have incredible public transportation systems -- you don't need a car to get around.
2. Most European cars outperform US cars in gas mileage -- even when the same model is sold in the US.
3. Most Europeans drive much smaller cars --you don't see a lot of Hummers and yuppie tanks.
4. When Europeans do drive, they don't drive as much or as far as US residents do. You don't find many Europeans driving 60 miles each way to work.
5. Most of their food and goods are produced much closer to where they're sold. They don't drive produce 2,500 miles to sell it.
6. Most of the gas price goes to taxes, which are used to improve public transportation.
7. Pricing European gas in dollars is silly, because the dollar is worth shit -- so it makes their prices look higher.

But more importantly, we're talking about the immediate effect on people's budgets. People in the US are strapped now -- they don't make enough to live on. When you take something like gas and double the price, it makes that markedly worse. If I tell you I'm going to take another $100 a week out of your pocket, it really don't make a bit of difference how much Europeans pay for gas.

but in Europe they have this wonderfull new invention called TRAIN, wich they use to transport people and commodities. ;-)

Europe has taxed gas like hell and regulated auto industry, which is prudent in long term, the economy is used to high prices (e.g much better MPG than US, public transport etc.), also high tax together with strong euro makes the cost rises much smoother. Does not mean Europeans would not be hurting too.

a huge message has been sent...the American people will put up with almost anything. We need to start thinking about way not to just bitch but to do something. I'm open to ideas...