Will we ever see gas at $3/gallon here in the US? (purchase, company)

[Peerless]

Had the longest debate at work today about gas prices and the future.

Seemed like the people I were talking with were the equivilent of a great wall in front of me.

Oh, and I said no.

[High_Plains_Retired]

I think so. It is already $3.20 in parts of Texas.

[NJBest]

I hope that the price of gasoline goes down, but the tax increases to effectively bringing it closer to $4. But given that gasoline is so cheap to begin with, I don't see that happening. So I think it will slowly average out to it's proper value.

[73-79 ford fan]

It all depends on what the central bankers who control the production of the people's money do. You can see what their hot money pumping quantitative easing program did to the price of oil with little demand since the Jackson Hole Wyoming 2010 speech. Basically expect waves of deflation amid the largely inflationary programs from the central bankers who are terrified of deflation. Notice how primary dealer scumbag banker Jamie Dimon is already crying uncle as this wave of deflation starts from the end of the QE2 hot money pumping program.

[shaker281]

I think it is possible that if demand declines and production (including refineries) stabilizes, we could bump back down into the low $3 range. But, I suspect it would be short lived. $4 a gallon may be the "new normal".

[Peerless]

I don't see much change here in Wisconsin. One day gas will go down two cents, the next it'll jump up eight cents.

$3 would be nice, but with all of the political turmoil, pathetic speculation, middle east crisis' (not to mention OPEC had a reported terrible meeting the other day), and summer... I just don't see it.

[MrRational]

The costs to run the pipelines, the shipping tankers, the refineries, the delivery truck network, and to keep the gas stations open are all pretty much the same regardless of the pump price and have been pretty much the same year over year for a long time. And they still need 55 gallons of crude to produce 42 gallons of gasoline.

What's left at the market end of the price? The tax per gallon on the product? OK.
Oh yeah, and the value of the currency being used to pay for it all.
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Saudi Aramco dates back to May 29, 1933, when the Saudi government signed a concessionary agreement with Standard Oil of California (Socal)... the Texas Oil Company purchased a 50% stake of the concession.

[Philip T]

Originally Posted by shaker281

I think it is possible that if demand declines and production (including refineries) stabilizes, we could bump back down into the low $3 range. But, I suspect it would be short lived. $4 a gallon may be the "new normal".

I tend to view the refineries as kind of economic retards. When they are blowing and going and thinking they have clear sailing ahead, things are heading for the cliff. About like their cousins, the automakers, in that regard.

So here (Texas) the refineries are rolling phat . . . so by my contra-reasoning -- be looking for a big fall.

As far as "new normal," -- jmho -- "normal" will likely be price bumps up and down the falling production curve. If more folks leave Oil on any local peak price, look for the fall that follows to go deep. As the price peaks, valleys and cycles continue, those who go off Oil will do well.

[Chango]

$3.00 is cheap. I expect gas to be more like $5-10 towards the end of the decade.

[southseeker]

$3 is very doable in certain places of the country atm. The real question people should be asking is if we would ever see $2 gas again. I think as long as we are involved in the middle east the floor will be $3 gas.