It's all about the dollar folks! Plain and simple
The weakened US dollar vs all other major world currencies is the reason for the explosion not only in gas (crude oil), but most all world traded commodities. People can throw out many other factors, all of which have SOME effect, but not to the magnitude of the declining dollar (which most all world traded commodities are denominated off of). As a trader, that is all you really look at. If you calculate a declining dollar (which obviously will happen with the insane FOMC interest rate cut, and our governments massive deficit spending, which has been taking place recently) you load up on call options on commodities in the futures markets. Gas prices are insane, but it's been HUGE windfall if you buying calls in crude oil futures.

Friends report that diesel in England today is selling at £1.24 ($2.47 by today's exchange rate) per 1 liter (0.219 gallon). Perhaps we don't have it so bad ... yet!

Drill for oil in ANWAR who cares if a darn caribou has to move. Animals adapt (much better than humans). We have the oil and the technology to drill responsibly. The refiners could be placed on old milatary bases. They would also bring in good paying jobs.

Why can't we find a way to make a fuel out of something so simple and available........... like grass clippings?!!!!!

Zoom:
I did a brief internet search and found the following. Oil refining capacity in the U.S. is nearly stable at 16 million barrels of crude a day, having grown 2 million barrels a day since 1996. The latest U.S. consumption figures that I can find are from 2004 and they were 20.7 million barrels of crude a day. World consumption in 2004 was 82.3 million barrels a day and world refining capacity in 2004 was 84.6 million barrels a day, showing refineries producing significantly higher than 85% of capacity. Whether refineries are running at full capacity or 85% seems to make little difference as we cannot refine enough for our own consumption. I suspect that 85% capacity is full production as you cannot run equipment full time 24/7/365. During my search I saw article after article quoting oil experts and politicians claiming a refinery shortage until at least 2010. How can we put much stock in “experts”, especially when they can’t seem to agree about something so easily researched? It’s not like they are differing about the origins of life, or the structure of the Universe. You don’t have to be an expert to see from the figures I found that there is a problem.

Read the comments after the article. Not everyone agrees, but there some good points.

The experts agree that refineries are currently operating at only 85% capacity. How is this causing the current high prices?

Zoom:
Read your link. The item was an opinion, an informed opinion, but an opinion just the same. The writer claims that high prices are a result of "forces" at work since about a year ago. As I recall, this price spiral has been going on for 7 or 8 years now. The winter of 2000 or 2001, can't quite remember which, was the last time gas was less than $1 a gallon. By that summer, it was $2 a gallon in Milwaukee and $1.60 or so elsewhere in the state. It crossed $2.50 a gallon in the summer of 2005, and then hit $3.40 or so after Hurricane Katrina. It went back down to around $2.50 about a month later and stayed above $2 and moving as high as $3 since until this year. Every time an oil refinery shuts down for routine maintenence the price goes up. Every time a refinery has an accident the price goes up. Sounds like a supply problem to me. At least, that’s what all the experts quoted by the media claim. And let's not forget the price of natural gas and electricity, which has little to do with the price of crude oil.

Here is an appropriate article about why gas prices are so high...and low supply of oil isn't the reason...
http://www.thetruthaboutcars.com/the-tru...

The "Greens" have been working toward this day for a long time. As far back as the 80's they had been pushing the idea of raising the gas tax to encourage people not to drive while fighting every attempt to increase the energy supply whether electrical plants, oil exploration, coal mining, and particularly nuclear power. They have promoted candidates that share their view and disparaged anyone who publicly opposed them. This is a world wide movement and it has been successful on many levels. Shrinking supply has worked well since increased energy taxes never got stong enough support. High prices aren't just due to greedy oil companies.

nowind, it's not that easy to just up and buy a different vehicle. Besides, I drive a Camry and it costs about $75 just to fill that!! OOPS..not American made, but it works well for me.....

Do you want a refinery in your back yard. No one does, heck people fight having a Wind farm in the neighborhood. How could you ever ecpect to get a refinery built. If the Oil shale will work it will have to have there refineries here in the states not in Canada like they do now.

There hasn't been a new refinery built in the US in decades and if one were to be proposed current enviromental requirements, studies and other requirements take almost 10 years to complete. Our current refineries are outdated and inefficent but we won't be building any new ones soon. But what the heck Bushwack and his cronies are making money hands over fists.

spanky you are exactly right! just to bad all the stinkin tree huggers wont let that happen.

intrigued
"We were just looking at planning a vacation to Utah"
Watch out for that Big hole from the oil shale mining when you get to Utah
At least these reserves of coal and shale are in unpopulated areas. But that sure hasn't help up drill in Alaska has it.

I'm sure it's easy for us to say that oil shale is the answer since they won't be mining it in our backyard.

I guess gas prices are high. I drive a car that gets 32-34 city and 40 highway (even though it is 13 years old). We were just looking at planning a vacation to Utah and I figured our round trip gas costs at only about $350 if gas is $4 gallon. That's not too bad. We sure couldn't fly there for that.

I guess we could always build a refinery and maybe drill for oil that is in our country. We don't have to rely on foreign oil we have our own here. It's just a matter of drilling for it.

Yep Oil shale it is. Thanks for the link

Is Oil Shale the answer? ******************** http://www.oilshaleexplorationcompany.co...

“It’s not a big decrease, but it’s significant.”
Pam "Yogi Berra" Moen

Lets retool the GM plant to make scooters

Why are we looking to the Government to start these programs. Do we realy think a government run coal to fuel plant will make sense. Look how well they have done promoting biofuels so far. Government subsidized Ethanol has caused food prices to rise.
If there is realy money in it then private industry will do it. But if we jump on a bandwagon to soon without a long term impact study or plan it will be money waisted.
For now, Get rid of your Janesville made gas guzzler, and buy at least a 25 mpg , size appropriate viehicle.

Simple Convert Coal to oil. No more problem for us

C'mon Mike, you can afford the gas.

Demand $2 a Gallon Gas

Oil was $127 a barrel recently.

Germany fought WWII with synthetic fuel from coal. America, with 1/3rd of Earth’s coal, can be energy independent for an estimated $55 a barrel, including the infrastructure and labor force necessary to operate plants. It is proven technology.

Synfuels are cleaner burning than gasoline and carbon sequestration can remove CO2.
Visit http://governor.mt.gov/hottopics/faqsynt...

Furthermore, reducing our trade imbalance keeps jobs in America. Every billion of trade deficit costs 13,000 jobs. $400 billion for oil last year: do the math.

And we stop sending billions to countries that sponsor terrorism.

Harness your anger at the pump. Call you're US Senators and demand they break ground on America's energy independence by encouraging an American synthetic fuel industry in this decade. If you don’t raise your voice the oil companies and politicians will assume you are ready to pay even more.

Stay in town this weekend and attend AirFest at the airport. www.swairfest.org Great entertainment with the Canadian Snowbird and others. The weather looks great and it won't cost much gas!