[Brucelee]

All good points.

Thanks.

Originally Posted by limoncello

Random thoughts:

Data point - I found a cute book for my dad (82, born in 1923). The book lists all sorts of trivia for the year 1923. It included the price of gas (11 cents/gal) and gave the average income. I did the math against our current average wage (around $35-40,000 I think, depending on where you live) and $2.50 a gallon (2 weeks ago). Gas today is one half the percentage of income that it was in 1923. Reason? Probably increased efficiency in drilling, transporting, refining, etc.

As the world grows, adding more people, more homes, and more cars - unless supply rises with the growth, then prices will go up. Simple math.

Our home and business development models are built on suburban sprawl. This takes a lot of petroleum to function. There is no short term way to alter the fact that we all have to drive a lot. If the parameters change (gas goes up) to the point of discomfort, we will change our patterns long term. On an individual level you can beat the system now: live near work, drive an efficient car, insulate your attic.

Last thought: If we built nuclear plants in the 1950's and 60's that are still on line, surely we could build better, safer plants today. South Carolina has a couple of nuclear plants in a relatively small state - electric prices are 12% below national average and there is a good energy supply to attract new industry.

Theory aside, $3 gas bites. (Near term reaction).