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Tuesday, March 21, 2006

Gas Prices Cramping Your Style?

The Virginia creeper and kudzu has new competition, rising gas prices in Virginia. Gas at Sheets in the beginning of March was 2.08 a gallon, now the price has moved upward to 2.45.The National average is now 2.51 according to yahoo. And they are reporting that some experts are predicting by the summer prices could again reach that dreadful 3.00 mark.

Oddly, if you go to Roanoke the price of gas runs about 10 cents cheaper. Why we are gouged 10 cents more is beyond me. We are about an equal distance from the distribution center.

Today, ethanol is in its infancy. Tomorrow, it may have a huge impact on the price of fuel.

Yahoo also reports:

"High prices will spur more ethanol production — there are 33 new plants under construction — but some minor near-term complications can be expected due to the rapid increase in demand, said Bob Dinneen, president of the Renewable Fuels Association and the author of the letter sent to the Energy Department."

There are some snafus and glitches with distribution, but those are going to be worked out. What is interesting, while our oil refineries are aging, new ethanol plants are on the rise. You do not have to put your finger in the wind to figure out the direction we are headed. Ethanol is here to stay.

Ahead of the curve, right now is Royal Chevrolet, and corndog aka Ken Woods , they are already offering duel fuel use vehicles. And they will point you to where you can buy the fuel. If you visit corndog's site, you can get an education on what ethanol will mean to us in the near future.

Ethanol is not the only solution to the present oil crisis. In Iceland they plan to end their oil dependency completely. They are going for hydrogen fuel cell vehicles, and already many fuel stations offer the non polluting option as an alternative.

In the early 1900's vehicles were powered by steam, electricity, and gasoline. Gasoline won out then, but now we are back to redrawing what form our future transportation will take. And in the United States ethanol is taking the lead.

To read more also go to Voteswagon, "Why is oil down and gas up?"


At 7:07 AM, Blogger Melissa O. Markham said...

I have been flabbergasted at the rising price of gasoline. What's up anyway? I don't follow the market, but I recently heard the price of oil by the barrel has actually decreased? Is this true? Are the gasoline companies taking us for a ride?

As prices go higher, people have less discretionary money to spend and even 'necessities' are re-evaluated. The gal who cuts my hair, says business has been way down with the increase in gas prices. I am sure other businesses are seeing the same effect...let's see, buy gas to go to work or take little Susie to the gas so I can get groceries or take little John to the dentist for a cleaning? These are just a few of the questions people are going to be facing.

At 9:33 AM, Blogger Ken Martin said...

We should all feel better knowing that there is some logical excuse as to why we are being taken advantage of.

It sure beats paying extra for no reason, doesn't it?

At 10:56 AM, Blogger richard said...

Alternative fuel sources are only a bandaid for our problem.

The real solution is to reduce our dependence on cars. That means either produce mass transportation that works efficiently, or eliminate the need to travel such great distances for work and life.

Or, at least that's what makes sense to me.

At 10:58 AM, Blogger corndog said...

Thanks for the plug, and I am in total agreement with your post.

I don't know if ethanol can REPLACE gasoline, but I do know that ethanol will, in a few years, have the ability to not only BREAK OPEC, but provide the liquid-fuels markets with the force of competition needed to put these monopolistic shenanigans to a complete halt. For me, the culprit right now is the fact that there is only one competitor in the liquid- fuels market (petroleum), and this makes it possible for speculators to control the price. WHEN ethanol becomes a viable competitor, speculation in oil will subside.

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