So what should the price of gas be?

My problem with Bachmann's $2.00 claim is that I haven't seen it backed up by data.

And like the media that's reporting on it, I'm too damn lazy to look for it.

I'm hoping some of y'all aren't so lazy.

So if we start drilling everywhere will that actually decrease the price?

How much oil is out there and how much do we use?

My perception is that increased oil supply just leads to increased oil usage so the price isn't really impacted.
Am I right?

So have at it DU experts. For the purpose of this thread you rule the world. What should the price of gas be and why?

is a "cartel" formed and run with the express purpose of fixing the price of gasoline on the world market.

It fixes (or at least tries to) the cost of Crude Oil that the member nations produce. If it fixed the price of gas, you wouldn't see gas at less than a buck a gallon in Saudi Arabia, for instance.

Whats a couple more holes in her head.

things, I automatically assume she's wrong on this, too. Not even worth looking for backup data, IMO, so laze away! :)

The federal gas tax should be used to keep the price level at around $5 inflation adjusted with the additional revenue used to subsidize the development and use of mass transit.

At least in the short term, adding more than $1.50 to the price of gasoline seems to be the same thing as adding a flat tax or sales tax. It directly punishes the people who can afford it the least.

$(Can)1.26 per liter which seems to be mid-range for Canadian gas prices around the country. http://gasbuddy.com/GB_Price_List.aspx?cntry=CAN

Gas tax in the US averages $.47 a gallon, in Canada it averages $95.8 per US gallon.

http://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States
http://en.wikipedia.org/wiki/Motor_fuel_taxes_in_Canada

Not sure how much of that extra $.48 per gallon Canada uses to fund the development and use of mass transit.

$.958 maybe?

We haven't raised the federal gas tax since the first Clinton administration. A 50% raise in the federal tax would add $1.08 to the price of a 12-gallon fill up. With gas prices fluctuating the way they do, who would notice an extra buck for a tank full? The difference between a $44 fill up and a $45 fill up seems negligible (car-pooling or ride-sharing once a month could offset the cost). That money could be used for road maintenance. Double the tax, and use the other extra $1.08 for development and use of mass transit.

Guess they can drive buses.

There's no real reason why we couldn't build them in the
United States.

Tesha

oh wait.

you do recall that chrysler has been in the "saab" state on and off for the last 30 years, and that GM went belly up two years ago and had to be refloated by the government as part of the great recession, right?

All of those companies operate successfully in high wage unionized workplaces with national gas prices 4-5x what we pay. Plus they also have excellent national mass transit systems so that you do not always need a car to get around.

Saab's misfortune was being bought by GM.

There will never be mass transit in rural areas so what are those people supposed to do? Oh, let me guess, move.

But that will never happen unless gas stations start having price wars again. That drove the prices down in the '50s.

The taxes on gasoline should be smoothly ramped-up until
gasoline costs at least the equivalent of today's $10/gallon.

Tesha

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It was the same argument offered when gas cost $0.99/gallon.

"Oh, we can't afford a $0.50/gallon gas tax hike; it will kill the
economy and the working poor!"

Yet somehow, when the oil companies imposed $3.00/gallon
in "additional dealer profits", the economy somehow limped
along and people continued to buy just about as much gas
and drive the same gas hogs as always.

They quadrupled the price of gas and it all went into the
pockets of the oil company stockholders; I'm only proposing
a doubling in price and since it's tax dollars, the government
*COULD* very rapidly put all of that money back into the
economy. And holding gas prices at an assured high level
might finally convince people to junk their gas hogs. And
*THAT* would help the economy quite a lot as well, not
to mention possibly decreasing our dependence on foreign
oil and our need to constantly be at war over that oil.

I'm sorry, but your excuse is threadbare.

Tesha

If you want to pay so much for gas, fine, but some people can't.

We could do nothing and eventually the oil majors
will take the additional $5/gallon as even-more "additional
dealer profit" or we could force the issue now with taxes.

The taxes could be used to benefit society, perhaps even
by providing jobs (e.g. transportation infrastructure improvements)
for the poor and by aiding people in seeing the wisdom of
conserving oil.

But like it it not, the change will eventually come.

Tesha

"Program subsidies that support the extraction, production, and use of petroleum and petroleum fuel products total $38 to $114.6 billion each year."

That's one hell of a range.

Thanks for the link though.

Seriously

...as a subsidy to the oil industry?

Tesha

$16/gallon when you factor in the cost of wars and environmental damage.

It is about $10/gal in Europe where they try to do this.

n/t

If the price of gas doubles, demand doesn't get cut in half.

In case you hadn't noticed, the game is a bit rigged.

when you can't survive without something your bargaining position is massively weak.

Anything above that ration should cost $8 per gallon.

If so, I'd support that completely.

Of course the breeders will bitch and moan that they get the same ration as the childless.

I need to know for vacation planning purposes.