Anyone concerned with the falling gas prices?

I am concerned that someone would have concerns such as you express in this question.

My only concern about falling gas prices is that it may tend to increase fuel consumption and pollution, and to decrease the sense of urgency for the development of alternative fuel sources.

@ Zaku: I think wb has a good and legitimate question. I too am concerned about the rise and fall of gas prices – what it really means, and why it happens. I always get suspicious when it drops.

I know some basics, but am still quite confused about the economics of oil, and as a result, gas. I hope someone on here has a slamming, easy to understand answer.

The question is, did demand really drop that quickly and that much?

How do you go from paying close to $4 a gallon, to close to 2 in less than two months?

I don’t think that the search for alternatives will slow very much, considering that many companies have already invested a lot of time and money. They want their investments to pay off.

@figbash: I’m not trying to make people wrong for having such a question, but it makes me wonder what the concern is about?

It’s pretty clear that oil corporations cooperate to determine oil prices, with the goal of scientifically creating as much profit for themselves as possible. It’s a complicated task which is much more effective when the costs of oil are predictable. Vast amounts of money are at stake for some very large and influential corporations. The invasion of Iraq was largely done because Saddam Hussein was making it difficult to accurately predict oil prices, which was costing these corporations a lot of profit (compared to the profits they saw they could make if they could accurately predict the supply in advance). The “war” also provided a handy context to create the idea that there was a need to raise prices, which the profits of these corporations clearly show was essentially just another way to rake in tons of cash. I’m not sure what the purpose of the current reduction in prices is for those who control it, but the only thing I can see to fear about it are the things I mentioned in my first reply.

The dollar is up against world currencies, which explains part of it. If the dollar goes up sufficiently high, we could pay a buck for a gallon and have it still be the same exchange value as when we were paying $4, but that is unlikely to happen. Demand drives price up, and lack of demand drives it down.

Since the gas price is lowered to stimulate demand during a recession, there is no need to price it low once demand is satisfactory. That, and scarcity, will probably send the price up again instead.

gas prices are where they are supposed to be actually. i just cant believe that less people are driving. only a small percentage cut back on excessive driving, but it’s no doubt people still have to get to work and school no matter what the price of gas is. the demand will always be there for fuel, but america should have taken gas consumption seriously back in the 1970s and looked for alternatives early on.

when the liquor runs out at the party, the party is always over.

$1.70 and falling

@snoopy where is it 1.70? Where I live, it has just fallen to 2.22 today.

I’m concerned that I might not have enough time to enjoy these good gas prices before they start to go up again.

Falling (oil) prices at the pump also could (should) mean lower heating costs this winter, which in turn should give consumers some relief and let them buy the stuff that they couldn’t afford had gas prices gone through the roof. In other words, people might have been saving a bit and now they will spend like no tomorrow, because we are, if anything, short sighted. Spending, now, is good. Retailers say they are hurting. Gas and heating prices falling mean that we (they) can spend more for Christmas. I, for one, am still hoarding. Well, not so much as I would normally. Has anyone seem the price of steak? Oh my fu*k! I just paid $5.98/lb for the most beautiful Strip. What up? My feeling? Someone set up us the bomb