The U.S. government is preparing American drivers for $4 gasoline this spring. Meanwhile crude oil prices seem to be settled into a range just above $100/barrel. As long as the U.S. dollar stays weak and demand for oil doesn't drop considerably, there's no reason to expect lower oil prices. There has been a slight decline in gasoline use in the U.S. so far this year. That's being credited to the higher prices, but summer vacation season will once again increase use...and perhaps push prices to $4 says the Energy Information Admnistration.
Here's where the EIA tracks gasoline and diesel fuel prices across the U.S. As always California leads the American National League is gasoline prices. Meanwhile, the Middle Atlantic states are ahead in diesel prices, already well over $4 per gallon.
All this will continue to put pressure on electric car companies to get their vehicles onto the streets. And will encourage even more VC investment in better batteries, more efficient and alternative energy systems and perhaps even penetrate 2008 American politics beyond the bumper sticker level. And, of course, it will put even more urgency into the argument over renewed nuclear generating plant development in the U.S. We are far from running electric cars on solar generated eletricity so the grid need to be fed...and how will be a crucial debate during the coming decade. Up and up
Shortly after I posted this blog, the crude oil prices climbed. Don't blame me. It all has to do with the reserves as reported by the feds, and any excuse to crank up the number pleases all those traders on the NYMEX. Not to mention our friends in Saudi, Venezuela, Russia, Iran.... So here we are, above $110 per barrel. That's so crude.