Get ready for $5 gas, again! But there is a way around it.

By
Real Estate Broker/Owner with Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 Tx Broker 0304050

I've been reading and listening to energy forecasts and how we are where we are.

First, a little trivia:

In what year was the first ever recorded law enacted to conserve fuel resources? 1581

Enacted by the English Parlament to conserve the forests that were being harvested to fuel furnaces for iron and glass production.

The solution: coal

What year was the first "oil" crisis encountered in the US when a gallon of oil cost the average of 1/2 week's wage?

1853.  It was whale oil that was used for oil lamps.

The solution: petroleum or as it was then known, rock oil.  Petroleum is the latin translation.

 

I was listening to the radio interview of David Blume, a researcher and ecologist with a lot of practical ideas on energy production with alternatives. 

He noted that oil prices ALWAYS drop just before an election.  Sound familiar?  And that they go back to their previous levels within a few months.  In the '06 elections, they went right back the very next day.  Expect $4-5 gas again come Feb-Mar.

He also noted that for $500B the world could build enough alcohol refineries to replace ALL oil production used in transportation.

For the first part of his interview, click here.

Listen and let me know what you think. 

 

For energy saving Green custom homes with alternative materials and power systems in Texas, talk to me.

For free information and resources, go to: www.preferredbuiders.org/home

 

Posted by

Mick Michaud,

Managing broker,

United Country Distinctly Texas Lifestyle Properties, LLC
Texas license # 0304050

The Lifestyle you want, the place to live it.

Comments (14)

John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

I might agree with the oil forecast if we weren't in a deepening recession. I'll be surprised if oil spikes very much until the overall economy begins to improve.  More importantly, I think now is the time to work on developing alternative fuels. I fear the lower prices will create apathy.

Nov 19, 2008 02:16 PM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Check out the interview.  Its actually in 3 parts of about 30 minutes each.  He makes a very good case for it to return, recession or no.

Nov 19, 2008 02:23 PM
Brenda Carus
Century 21 Zwygart Real Estate - Monroe, WI

I have been anticipating the rising prices again too.  The days of cheap oil are gone; we need to grasp this idea as a culture.  They might not go back up to $5 a gallon by January, but these days of $2.25 a gallon are an endangered species.  I am planning my life around the anticipation that fuel prices will rise again, not the idea that the higher prices were an aberration.

Nov 21, 2008 01:05 AM
c m
Colorado Springs, CO

Hmmmm...the hubby said this evening, when we saw gas for $1.69 that he remembered the analysts and forecasters a few months ago, saying that gas would soon be $5.00 a gallon.  Oil went from $145 a barrel to $50 in pretty short order.  You may be right, it may be about the election, but it seems that currently, making predictions about anything is a shot in the dark!  I haven't checked out your link, but I do believe there are a multitude of alternative ways we could feed our uncontrollable appetite for energy, if there was sufficient support in Washington to investigate it.  Great to hear your business is doing something about it, instead of just talking about it! 

Nov 21, 2008 03:22 PM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Predictions are tough if you put too tight a time-frame on them.

Washington providing support is not the answer, never has been.  We have the solutions in our capability right now.  It's Washington's policies of the last 40-50 years that have been keeping it from getting to the market place in a big way. 

There are way too many regulations in place now that are causing a boat-load of problems.  The best thing Washington could do would be to completely remove all regulations regarding green energy production, remove all tax incentives that are targeting only a sector or industry (coal, agriculture and oil) and exempt any income derived from alternative energy production from any income taxes.  PERIOD.

Then stand back and watch how fast we get to total energy independence.

 

Nov 21, 2008 03:29 PM
c m
Colorado Springs, CO

I think you said better than I did, what I meant.  Not that Washington should be involved in investigating alternatives, but that they not stand in the way.  Alternatives have been around, getting featured on the news, even just a blurb. cars running on french fry oil, etc, since the 70's.  But that is as far as it goes.  There is so much money being made in Washington by NOT stepping aside, and letting alternatives go and grow, it seems the only way to fix it is to clean house...

Nov 21, 2008 04:14 PM
Charlie Harden
Columbia, SC

Ah, man don't tell us $5 a gallon will be back anytime soon.  We're enjoying it at $1.75.

Nov 22, 2008 08:32 AM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

It's not me saying so.  Its demand/supply, radical "green" groups that prevent drilling at level and the unholy alliance of them with government AND of the oil companies and government.  Strange bedfellows and they're hurting us all.

 

 

Nov 22, 2008 11:11 AM
Jay Williams
Greenville, NC - Greenville, NC
Mortgage Loan Officer - Getting You The Right Loan

Mike, it took me a while to find it. You are very prolific. Great historical account!

Jay

Jan 11, 2009 02:11 AM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Jay,

Thanks for the time to dig this out.  I'm a little hesitant to post links to my blog in someone else's thread unless I know they won't mind.  Don't like hijacking.

Jan 11, 2009 02:49 AM
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Good points Mike, very interesting.

Jan 11, 2009 03:22 AM
Gayle Balaban
The Best Spot Realty/Waterfront Real Estate/Ooltewah Real E - Chattanooga, TN
E. TN Waterfront Real Estate

Actually if they would regulate the speculative commodities market this would end for good.

Jan 11, 2009 01:25 PM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Ricki: Thanks

Speculation causes short-term price fluctuations.  However,  we have this little thing called supply and demand and demand in the long term is not going to go down. 

As it is, I'm more than a talker.  I'm actively involved with bio-diesel production with a small 4MM gallon/year plan in east Texas.

We've got to get the alternatives on-line.  And at market rates, not with governmental subsidies. They've pissed in that punch-bowl already.

Jan 11, 2009 01:32 PM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Well, here it is a year later.  Boy did I miss that one.  But then again, when I posted this, we didn't know how far off the cliff we were going relative to the economy.  However, the political environment being what it is, there is more upward pressure to artificially get it there. 

 

 

Sep 25, 2009 03:50 PM

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