$100 Per Barrel - The Barrier Has Been Busted Your Gas Guzzler Will Get Rusted

Well, it finally happened didn't it, Oil is now $100 per barrel, think it doesn't matter then think again. Everything you buy every where you go was delivered by truck, train or plane and with prices up that means there is a hidden wholesale tax and that means inflation on the cost of goods. But how can we have inflation when the housing prices are tanking and the Q1, Q2 and Q3 there are expected twice as many homes to hit the market including foreclosures and the hail Mary short sales?

refinery

Increased oil prices hurt buyer psychology, yes that's right public perception, of course we know it as consumer confidence and many economist belief that simple belief in the economy from citizens accounts for 1/3 of its total performance, hmm, that's not too good. With prices up, fuel up, this means layoffs, lack luster retail results and Christmas broke no speed records this year. What did Wall-Street say about the $100 fuel prices? Well the market took a 220 pt. hit right at the start of the January barometer and the red end of the Santa Clause Rally. Ho Ho oh!?!

mula

Airlines, Trucking, all of transportation, and retail, auto-sales, housing, and banking, too - Small business, ouch and the dollar is 30% down against the rest, okay for manufacturing but what does America make anymore? Hamburgers! I said not to answer that. I hope all the Realtors here are ready for round two, because if your nose is bleeding now, you better be ready, cause its going to get ugly. Too much reality check for you? Too much doom and gloom? Hey, don't shoot the messenger. If you have a different view, I welcome your comments. - Lance

 

25 Comments on $100 Per Barrel - The Barrier Has Been Busted Your Gas Guzzler Will Get Rusted

Gas prices suck.  Oil prices are terribly high.

BUT I can't find a way to get my ladders and tools on the back of a bike for the 35 mile drive to the inspection, especially when the wind chill is 5 below zero.

There goes the recreational trips.

01/03/2008 07:43 AM by Erby Crofutt, Central Kentucky Home Inspector (B4U Close Home Inspections & Radon Testing)


I quite agree that $100/barrell oil is a difficult pill to swallow.  This will definitely get the alternative energy folk back to the table on this year's election, which could be a really great thing!

01/03/2008 07:43 AM by Matthew Rosov, Certified Mortgage Planning Specialist (Envision Lending Group)


We are really in the soup. We have a pres from an energy state and no infrastructure built to help folks with mass transit. So we really are hosed. Maybe the next Pres will get his or her head out of .... and take an initiative. Where are Ike, Harry and Teddy R people with guts brains and the ability to get things done

01/03/2008 07:46 AM by Charlie Ragonesi Big Canoe Realestate Jasper,Ellijay,Ball Ground,Benttree (All Mountain Realty)


Our prices have gone up again. As matter of fact they went up by 10cents over night ! I have also noticed food, cereal etc has made it's increase as well ! Time to trim the Bush's !

01/03/2008 07:48 AM by Crossville TN Real Estate Melissa Grant Lake Tansi & Fairfield Glade Waterfront (Third Tennessee Realty and Associates)


Matthew,

Yes, well that is our consulation prize, I guess it is time for the nation to stop procrastinating and bring on the alternative tech, we have it is just a matter of producing it, and its not as if we don't know how. Good point. Lance

01/03/2008 07:49 AM by Lance Winslow (The Car Wash Guy)


Melissa,

I did not fill up my fuel tanks on my motorcoach last week, thinking I might save a little this week. My trucking industry news e-letter tells me $.059 yesterday, and now those Chicago boys will bid it up even higher and hell I live in California, I cannot imagine what its going to be here, the darn coach has nearly 500 gallons worth of fuel on board? Yikes. - Lance

01/03/2008 07:53 AM by Lance Winslow (The Car Wash Guy)


Erby,

Yes, I guess we are basically stuck with it, I mean what can you do. This is going to really get in the shorts of the small business people, solo entrepreneurs and Realtors, hell, that's they do is drive around town all day getting everything done. Wow, bad timing for the real estate industry, who needs that now?

01/03/2008 07:55 AM by Lance Winslow (The Car Wash Guy)


Consumer confidence truly drive our economy.  Gas prices effect it and so does the media in HUGE ways. 

I work in a unique location, there is the "mainland" and the Island and you can watch the tremendous effect that gas prices right before your eyes.  On the mainland, housing prices are good, sales are almost equal to last year and we've got around 6 months of inventory, and retailers are always busy.  On the Island, it's a different story because you have to drive all the way across the bridge!  The minute gas prices go up, people stop driving.  On the Island, housing sales are way down from last year, inventory is way up (11 months!), and even our retailers are seeing the crunch there. And, it's all because people don't want to spend the money on gas.  It's insane how gas prices really do effect EVERYTHING we do and buy.

Good post!

01/03/2008 08:04 AM by Jen Hudson - Stanwood, Camano & Arlington,WA (RE/MAX Signature)


Lance, Oh Lance you are killing my optimism now :(  This post was cleverly written and I loved your injections of sense of humor within (hail mary short sales, may I use that??) 

It is really true about killing buyer confidence.  I am starting to think about dusting off the ole mustang in my garage and letting the explorer get rusty now!  As the caucuses and primaries begin today with Iowa, I would have thought we would see a lowering of energy prices, just like we did with the mid-terms.  I really do not believe what has happened in our energy sector is all free markets.  Read Enron.  I do have hope for 2009.

Get my drift?

 

01/03/2008 09:24 AM by Renee Burrows - Las Vegas NV Real Estate (Nevada Realty Solutions)


Lance - I enjoyed reading your post until I got to the end - I hate to say it, but it was a bit of a let-down.  I guess I'm left wondering what the purpose was other than to post "doom and gloom"?  Surely you see some light somewhere...care to share it?

Jackie

01/03/2008 01:46 PM by Jackie Peraza, Home Stager - Framingham, Massachusetts (Perceptions AdverStaging(TM), LLC)


Jackie,

Well Jackie, I am unaffected and your Stagging will be in more demand due to all this. I always did well in down-economies and adverse sector rotations, while unemployment numbers were going up. The Franchising Industry is counter cyclical, so is the service industry, as it is often cheaper to outsource service. But, then there is retail, housing, auto sales, and higher ticket non-essentials like Furniture, jewelry, etc. In chaos is always opportunity, so you look for the opportunity and buy low and sell high. The best part of tough economies is that it puts reality back into the game, hard work ethic and adversity builds character. The ending of the short economic piece today, was imagery from "Rocky" who emerged the champion and the better man! It's all in how you look at things, today starts the beginning of a audit and test of your will and strength of character. Do you accept the challenge? If so you have nothing to worry about. - I fear nothing. Lance

01/03/2008 04:21 PM by Lance Winslow


Renee,

Yes you can use my "Hail Mary Pass Short Sell" comment in your blog, correspondence or speeches to homeowners during conferences and symposiums, or where ever you like. I thought that was funny, and thought of it as I was writing something the other day. I think for many it is a "Hail Mary Pass" and my other thought was calling it a "Hot Potato" and you can use that too. Its like playing musical chairs with real estate and the music stopped minutes ago. Its like that old "Fruit Cake" oh no! not another fruit cake, quick wrap it up with a pretty boy - stage coach is leaving jump on - see ya! wouldn't want to be ya. Anyway, hang tough gorgeous Renee, you are winner and this is the time for winners to shine - Lance

01/03/2008 04:27 PM by Lance Winslow


Jen,

Yes, I know the area well and have done a bit of business in Mt Vernon, Burlington, Oak Harbor, Antecortes and have friends who live use to live on Orcus island, speaking of oil, the distribution plant is there too. I can see that things could get interesting in Snomish County, but also some good news Boeing just closed a deal for 790 of those new Boeing 787s with British Airways, I guess you already heard that news, so you should be fine there. Remember the 787 is the most efficient airliner ever built, and efficiency means savings and the airline industry will need as many of those aircraft as they can get. My dad tells me they paid $5.60 a gallon of jet fuel for the G-4 the other day. Scary stuff. But, you are in a unique situation there considering the rest of things. - Lance www.aircraftwashguys.com

01/03/2008 04:36 PM by Lance Winslow


 

Yeah ... the price of gasoline is bad, but thank god our cars don't run on milk at over $6.00 per gallon!

If only I could get from point A to point B around here without freezin my arse off... I'd ride a dog pulled sled to work:-) Granted it would add about an hour and a half to my 10 minute drive in to town.... but it would be so much fun!  HEY! I wouldn't have to wash it! And I could fit at least one client in the*sigh*

I hate the cold, dislike doggy pooh and have a need for speed to reach my destinations...

01/03/2008 04:51 PM by Michael La Fay & Sara Edwards (Meadow Lakes Supply Co.)


Sarah,

I like your alternative transportation, perfect for showing properties;

"Just get on and we will slide over to see my new listing"

Yes, you are definitely going to save some fuel that way, but I wonder what dog food costs, those dogs look hungry, or do you just stop every so often and let them catch and eat a rabit? - Lance

01/03/2008 08:20 PM by Lance Winslow (The Car Wash Guy)


Don't rub it in i just filled up the tank

01/04/2008 03:55 PM by Jack H. Wimberly


Lance, We have seen the fallout from rising gas & oil prices for the past year. It is one thing we can't do a darn thing about but doom & gloom isn't what we need right now.  We just have to work smarter. 

 

01/04/2008 04:24 PM by Sandra Paulow, Your AZ. White Mtns. REALTORĀ® (RE/MAX Pine Country Realty)


Sandra, 

I guess you are right about that. Indeed, folks did not drive up to Flagstaff to get out of the heat for the day much this summer either, I guess by the time you drive out of Phoenix with the air-conditioning blazing up that hill, you have killed a half-a-tank. I talked to some shop owners downtown there, they said things were tight. Some of my family in "Winslow" Arizona, tell me the store was not as busy there either, fewer travelers, fewer RVs on the road, etc.

So, it is obvious that people are traveling less and some travel destinations suffer, others do well, which are closer. Amazing that Airline travel is up and driving travel is down, but then again, my last trip from CA to DC in the motorcoach was $3300 in fuel as opposed to $1200 back in 2002 and $800 in 1999. So, I suppose I understand better why people are traveling less by car, but it can affect some economies more than others and these are challenges that must be faced head on and applied directly to the forehead to figure it all out.

Yesterday, between the anti-Corporate speech from Edwards and the Oprhama - Iowa victory calling for complete change, + the $100 per barrel prices the stock market went immediately to where the analysts said it should be and thus the technical traders were right, I guess so was I, sold everything on December 30 at the end of the Santa Clause Rally. Why, well, believing that Auto, Retail, etc. would report poorly and the slowing economic figures too (most of which are BS inflated embellishment anyway, the reality is much worse). More questions, why, well, due to off-shoring, outsourcing, layoffs, trade deficit and of course, high oil, which is killing the little business person and families (consumer confidence and spending) too.

But, with the stock market back down, soon we could be looking at another up-trend, as the FED will have to shore up investor confidence too with a rate cut. So, we have been discussing here at the Think Tank a 2.5 year bottom in real estate from now and buying in along the way would make sense. Additionally, we see this stock market testing twice with some volatile mood swings and an occasional bad hair day, and flat for a week and then back up it shall climb, not like a Saturn V rocket, but upward like the Peloton Pack in the Tour de France or some long-distance bicycling tourists riding from Globe AZ thru the Indian Reservation up the hill to you on Hwy 60, scenic yes but that is a heck of a climb and its going to take a while. Think on it.

**Note: I am not a financial advisor, these are my sole opinions based on a radio show script I have been writing for an interview tomorrow, which could change at will. If you are looking for good advice call Jim Cramer and read his disclaimer to understand the reality of financial advice on TV, radio or the Internet.

01/04/2008 05:11 PM by Lance Winslow (The Car Wash Guy)


Lance, I understand how it is easy to get discouraged with all that is happening in the world.  Our market was very much affected last year as well by gas prices and the subprime mess in late summer.  I had a client comment the other day that he guessed the season was over.  I told him I didn't think we had a season last year.  2008 has just got to be better, I won't think otherwise. 

01/04/2008 05:15 PM by Sandra Paulow, Your AZ. White Mtns. REALTORĀ® (RE/MAX Pine Country Realty)


Sandra,

It would be nice to say that the worst is over for you there and maybe it might be, but between the fires a few years back and some of the drought periods, then the high fuel prices and now the housing slump challenges, I see that y'all have been thru the wringer. - But you have to admit that Show Low, AZ is a great place to live and the people there are sure nice folks, I mean wow what a cool place it is. Lance

01/04/2008 05:34 PM by Lance Winslow (The Car Wash Guy)


3 weeks ago I traded in my Suburban because I was getting only 10-11 mpg and bought a Cadillac SRX and I'm now getting 17.5 mpg.  I love it!

01/04/2008 05:43 PM by David Slavin, ABR, SRES RE/MAX Grand, Katy, TX (RE/MAX Grand)


Don't matter, I am not giving up my F150.  I will pay the cost, I have to.  Im not getting rid of it. 

01/04/2008 06:45 PM by Chad Baird (Re/Max Spirit)


David,

The Cadillac SRX is a fine automobile, and an excellent choice too, I did not know they were so fuel efficient, pretty good considering how cool they look:

srx

Indeed, not long ago I wrote an article on that very subject of Suburban Fuel Mileage:

How Can I Conserve Gasoline:

There are many ways to conserve fuel when driving; simple things you can do to increase your gas mileage. Recently I was at the gas station and I noticed that the price was above $3.00 per gallon for regular. I thought wow, I am glad I have a small car with me today? I looked over at a Soccer Mom, filling up her tank she looked at the pump with tears in her eyes and started to break down. I asked her what was wrong, only half suspecting it was the fuel prices. She said she had wanted to visit her mother next weekend how was in the hospital, but said she couldn't. She said look at this. It said $109.09 and she said; "My card is already over limit and I will be surprised if they do not shut it off now." Today gas is three-dollars a gallon soon if could be as high as $4.00?

I asked her what it usually cost to fill it up? She said something that shocked me; "Who said I filled it up?" In fact it was not on the "F" for full mark. Her trusty Suburban, which she bought for safety so she could take her four kids to various school, church and sporting events and practice is too expensive to drive. She said she could let her husband drive it, but it really did not fit in the parking structure at work too well and it kept getting door dings and side swiped when he used it. It did have marks on it, it was a nice vehicle indeed, even had what appeared to be shopping cart therapy marks from its over size in the stalls.

I explained to her some simple driving techniques which if employed could reduce her weekly fuel bill considerably. We talked about carpooling techniques when possible and consolidation of trips. It is time America think about conservation, perhaps better planning of trips, car pooling and driving at best rates of fuel use. Then we talked about the best way to use cruise control. How so? Well use cruise control and drive 55-60 on the freeways, this will keep your cars fuel consumption rates low, once you move much over 55 mph, the co-efficient of drag curve shoot up into a hyperbolic usage scale. Cut down on that wind resistance of highspeed, as takes a big toll on your fuel economy. Another thing you can do is not accelerate from a stop, allow the car to slowly break ground (move forward) before touching the gas pedal. You can also think about using the air-conditioner less, use the poor man's "model 52" air-conditioner drive fifty and roll down two windows.

01/04/2008 08:24 PM by Lance Winslow (The Car Wash Guy)


Chad,

Well, some of my friends who live in Louisville, KY, are very glad to hear that, with only one exception, please buy another F-150 when you get tired of your current one, they want those factories running full strength, its good for the local economy and housing market - Lance

01/04/2008 08:28 PM by Lance Winslow (The Car Wash Guy)


Now the news is telling us that gasoline is going to $3.60 per gallon and maybe $4.00 by the Summer? And that $100 per barrel is not the top, it might go higher even still? O 

01/05/2008 06:37 PM by Lance Winslow (The Car Wash Guy)


Leave a response…

Name:
Notify me of new comments:
Comment:
What does the graphic say?
 
Property Manager: Lance Winslow (The Car Wash Guy)
Lance Winslow
Malibu, CA
More about me…
The Car Wash Guy

Office Phone: (800) 879-8783 Ext.: 111
Email Me
Mr. Winslow uses the Active Rain Real Estate Industry Blog, to discuss issues that affect the Real Estate sector of our economy. His dialogues include such things as; droughts, subprime lending fallout, building materials, living off the grid, sales ethics, commercial property, crime, revitalizing downtowns, economic development, community volunteerism, and predicting the future of the real estate markets in the United States.

Links

Tags (Tag Cloud)

Archives

RSS 2.0 Feed for this blog
ATOM 1.0 Feed for this blog

Find CA real estate agents and Malibu real estate here on ActiveRain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2007 ActiveRain Corp. All Rights Reserved