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2/28/2005

$2.50 a Gallon?

The demand for gasoline is ever-growing but supply capacity is peaked. In the article, Analysts: Crude Could Hit $60 a Barrel, it states that we should be expecting $2.50 a gallon somewhere in spring. After spring, I believe gas prices will get even higher. I do not see the demand for gas diminishing any time soon. This made me think of substitute goods, as the price for gas increases, the benefit of a substitute increases. I believe the trend for hydrogen and alcohol fueled cars will rise. There are a few motor companies that are investing in these substitute goods; I feel these companies will be a good investment in the long run.
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1 comment:

  1. Dr. Tufte12:17 PM

    I think Ralph hit is just right here.

    Demand for gas is growing. That's a reflection of good things, right? More travel, more transportation, more goods being made with the energy, right?

    So the higher prices are a reflection of us doing the things we value in life. Seems to me that's the same reason that pizza isn't free.

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