Friday, December 26, 2008

Gulf Oil CEO Predicts $1 a Gallon Gasoline

That's right, a dollar a gallon for unleaded and a barrel of crude for 20 bucks! Gulf Oil CEO, Joe Petrowski said that we could see see these prices early next year. Just as we watched prices skyrocket to $147.27 a barrel this past summer we are now watching them plummet, "there is a chance the market will overshoot on the way back down," resulting in much lower prices at the pump, Petrowski said during a talk in Newton, Mass.

From the Pittsburgh Tribune-Review:

"Petrowski said that oil, which settled at $37.90 a barrel today, may fall to $20 a barrel. Average gasoline prices nationwide slipped under $1.60 a gallon yesterday, a four-year low.

Just four months ago, crude oil prices shot close to $150, and the average, per-gallon cost to consumers was more than $4. Crude has fallen nearly $27 in one month.

Petrowski became Gulf's CEO in 2005 after more than 20 years with other energy companies. He correctly predicted on Oct. 14, 2007, that oil, then trading at $83.69 a barrel, would rise to $100 within six months.

He said the price of oil should range from $40 to $60 a barrel, depending on economic activity, in order to keep pace with inflation."

I remember reading articles last summer that declared unequivocally we h43.67ad seen the end of 60 dollar a barrel gasoline. Here we are, talking about gasoline at one third that price. Guess the self proclaimed experts are anything but.

Most importantly, what does this mean for our country's efforts to become more oil free? I am afraid that $1 a gallon gasoline will weaken our resolve to build and buy alternative energy vehicles.

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