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Posts Tagged ‘fuel crisis’

Gas Prices on the Rise Again

January 12th, 2009 2 comments

It looks as though the low gas prices are going away.  CNN is saying that gas prices are going back up after sliding down from the July 11th High that has hurt so many and aided in the economic crisis we are in now.  Though the gas prices going up is a good sign for gas and oil workers in the south as that means the demand for more fuel is rising.  Typically the winter months begin the rise up to the spring and summer travel season meaning more fuel.  This could be s sign of a strengthening economy.  When the demand goes up for fuel so does the demand for support of goods to supply.  Though this is only a hope for a need to supply jobs.  For me the gas industry directly effects my family.  If the off shore wells are in production that means my family business of making pipe for oil wells and pipeline is needed.  So in turn th gas price is a god send to support my family.

But rising gas prices are going to hurt others that are already hurting and don’t work in the industry.  So as a socially responsible citizen I try to transfer the funds to companies that make goods here.    So my buy American Attitude is in full swing.

I doubt the projection of $1 a gallon gas is probably not going to happen.  That failure is probably good.

Check out the CNN.com Artilce

Gas-price slide shifts into reverse, rises 12 cents in 3 weeks

(CNN) — The U.S. average price for regular unleaded gasoline rose by nearly 12 cents in the past three weeks, marking the first increase in six months, according to a national survey released Sunday.

“It is the first rise since July 11 last year when prices hit their all-time high,” said Trilby Lundberg, publisher of the survey.

The average price of self-serve regular unleaded gasoline is $1.78, according to the Lundberg Survey, which is based on responses from more than 5,000 service stations nationwide. The latest survey looked at prices January 9.

“The price had to hit bottom sometime,” Lundberg said.

She said part of the reason for the price spike is recent indications of production cuts among OPEC members, which are aimed at driving up oil prices during a time of year when there is a decreased demand for gasoline.

“January historically is the lowest gasoline usage month,” Lundberg said.

Despite the increase, gas prices are still $1.29 lower than they were on January 11, 2008, she said.
Drivers in Billings, Montana, had the cheapest gas on average, paying $1.34. Motorists in Anchorage, Alaska, paid the most, at $2.32.

Gas Prices Drop

November 16th, 2008 1 comment

Gas prices have dropped for 60 days straight.  Gas prices have dropped 60% since Summers high.  Gas prices near my house are $2.00-2.10.  The high gas price I remember from this summer was over $4.00 which means that gas prices should drop to around $1.60.  I never thought we would see prices this low again.  Oil prices demonstrate and codify negative circumstances – it is nice to see – since gas prices effect more people directly than does much of Wall-Street’s short comings.

Read the CNN.com/Money.com article referencing the low gas prices.

Gas price drop: 60 days straight

National average price for gallon of gasoline falls to $2.105. Peak was $4.114 in July.

Remember $4 gas? Soon it will be $2 gas.

As the nation’s economy worsens, the demand for oil and gas wanes. As a result, prices drop. And drop. And drop.

The price of gas fell overnight Sunday for the 60th consecutive day.

The national average price for a gallon of regular gasoline fell 2 cents to $2.105 a gallon, according to a survey released Sunday by the American Automobile Association.

A gallon of gas has dropped nearly in half since hitting an all-time high of $4.114 on July 17. It’s been nearly two years since prices were this low, according to AAA figures.

At the high end, drivers in two states are paying an average of $3 or more: Alaska, at $3.181 a gallon, and Hawaii, at $3.049.

But there are now 16 states where the average price has fallen below $2. Missouri had the cheapest gas in the nation, at $1.816 a gallon.

The rapid decline in gas prices comes as the price of crude oil continues to collapse. Crude prices, which make up roughly half of gasoline prices, have fallen more than 60% since hitting a record $147.27 a barrel on July 11.

Crude for December delivery fell $1.20 to settle at $57.04 a barrel on Friday.

Gas Prices affect everyone

June 24th, 2008 No comments

Gas prices really hit home and affect everyone. No one really knows the true effect of gas prices until it is too late. I worry about the gas prices effect on the economy as a whole. Today’s article from CNN shows the impact it could have on airlines. As a frequent flier and traveler I have sidelined some of my trips due to the cost. In fact a trip across town is taken into consideration more closely because of the sheer cost of fuel. As a once frequent restaurant goer I now eat at home more than ever before. The cost of fuel really effects my day-to-day life.

With the volatility of the airlines these days anything that effects them shows a true representation of the American family. Like that of the already hard hit American families airlines are hurting too as can bee seen in the quote from the CNN article, “Already-depleted cash reserves are dwindling fast, and unless the fuel crisis lessens, airlines face not the now-familiar protracted restructuring in bankruptcy, but outright and immediate extinction”. The families will not disappear but it will affect the American way of life that we have grown so accustomed too.

Read the article over at CNN, Fuel costs could ‘devastate’ airlines.

Fuel costs could ‘devastate’ airlines

Rising fuel costs could drive major air carriers out of business and hurt economy, says report.

By Aaron Smith, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) — The skyrocketing price of fuel could “devastate” the airline industry and hurt the economy, according to a report from the Business Travel Coalition released Monday.

Pressured by rising fuel costs, major airlines could collapse as early as this year, the coalition said. The failure of just one airline could disrupt travel for 200,000 to 300,000 daily passengers and cause between 30,000 and 75,000 immediate job losses, said the coalition.

The failure of more than one airline could result in 100,000 job losses, said the report, particularly in such hubs as Atlanta for Delta Air Lines (DAL, Fortune 500), Chicago for UAL Corp.’s (UAL) United Airlines and Continental Airlines’ (CAL, Fortune 500) Houston.

“Already-depleted cash reserves are dwindling fast, and unless the fuel crisis lessens, airlines face not the now-familiar protracted restructuring in bankruptcy, but outright and immediate extinction,” said the report.

Business travel would be disrupted, as would the airborne supply chain for goods like pharmaceuticals, electronics and auto parts.

Rising fuel costs hit airlines hard. Fuel expenses are expected to total $61.2 billion this year, compared to $41.2 billion in 2007, according to the Air Transport Association.

Some major airlines, such as Northwest Airlines (NWA, Fortune 500), United Airlines, Delta and U.S. Airways (LCC, Fortune 500), continue to operate despite filing for bankruptcy in the last several years. But the credit crisis would make it harder for a bankrupt airline to keep operating while trying to restructure its business, according to the coalition.

The lack of bankruptcy financing is part of the reason why smaller airlines like Aloha, ATA, Champion, Eos and Skybus recently stopped operating, said the report.

Analysts who cover the industry disagreed that a major carrier would crumble this year, because the airlines still have enough cash to survive into 2009.

“I think it’s more likely that any large airline bankruptcies would occur next year,” said Philip Baggaley of Standard & Poor’s, who has assigned his lowest ratings to U.S. Airways, AirTran Airways (AAI) and JetBlue Airways (JBLU). “At least at current fuel prices, most of them have enough liquidity to get through several more quarters. But it could get rather more uncomfortable by 2009. Oil prices are the largest variable.”

Robert Mann Jr., an industry consultant, said the airlines have enough cash to ward off collapse for this year, and that capacity cuts should help them survive.

“The cuts in flying are designed to cut cash loss and that’s what I hope happens,” said Mann.

Raymond Neidl of Calyon Securities agreed that the airlines have enough cash to avoid disaster in the near future, though he expects that the number of carriers will shrink through consolidation.

“Nobody’s going into bankruptcy this year,” said Neidl. “Airlines die slow, and they always seem to come up with the cash to keep going.”

Delta plans to acquire Northwest Airlines, though the merger is yet to be finalized.

How is the cost of gasoline effecting your life? Does it affect you daily? Do you travel less because of the price of fuel? Let the world know how the effects on your wallet…