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The Impact of $5 Gas Prices, and Eco-Proppants

In this week’s episode of R-Squared Energy TV, I talk about the impact I believe $5 gasoline will have on most people, and whether there are any environmentally friendly proppants that can be used for hydraulic fracturing.

Some of the topics discussed this week are:

  • My observations here in Hawaii on the impact of $5 gasoline
  • Why I think gasoline prices have peaked (for now)
  • What proppants are and how they are used in hydraulic fracturing (fracking)

One thing I meant to mention in the video, but forgot, is this. I was paying over $4 a gallon for gasoline in Germany a decade ago, and the roads were still packed with cars. In the Netherlands in 2008, gasoline ran up to about $9 a gallon, and there seemed to be no let-up in traffic. If there was a good solution for gasoline at $5 (or higher), then the Europeans certainly have not figured it out. True, they use a lot less as a result of many years of high gas taxes, but over the short term there isn’t a lot that most people can do but pay more when prices run up. In the video I point out that the price of oil has doubled in the past five years, but U.S. oil consumption has only fallen by about 10% over that time. So we are using less and paying a lot more overall.

Readers who have specific questions can send them to ask [at] consumerenergyreport [dot] com or leave the question after this post (at the original source). Consider subscribing to our YouTube channel where you’ll be able to view past and future videos.

The Impact of $5 Gas Prices, and Eco-Proppants — R-Squared Energy TV Ep. 18

By Robert Rapier

9 Comments on "The Impact of $5 Gas Prices, and Eco-Proppants"

  1. BillT on Thu, 12th Apr 2012 3:55 pm 

    Gas in the Philippines has been over $4 per gallon for over 4 years. It is currently 69.55 pesos which comes to about $5.40 per gallon on a country where a laborer makes about $12 per DAY.

    1 gallon costs 3 1/2 hours of labor here.

    If you compared that to the Us minimum wage, it would cost a Us laborer $25 per gallon. Now, do you really think gas in the Us is expensive?

  2. BillT on Thu, 12th Apr 2012 3:56 pm 

    69.55 pesos per liter…not gallon

  3. eastbay on Thu, 12th Apr 2012 5:34 pm 

    S$ 2.25/litre in Singapore right now, which means about US$7.25/gallon. And the roads are packed with vehicles.

  4. luap Simpson on Thu, 12th Apr 2012 5:54 pm 

    dont worry cheap oil will be gone very soon,you will pay $100 a gallon maybe more if you can afford it, the rest of us will be on bicycles but we will all prob starve just so we could drive endlessly in traffic jams(98% of worlds food needs oil so we can produce it)

  5. Chris on Thu, 12th Apr 2012 6:40 pm 

    $9.50 per gallon today in the Netherlands. Doesn’t seem to be having any effect on the amount of traffic but I do notice more people driving more slowly to save fuel.

  6. Rick on Thu, 12th Apr 2012 7:00 pm 

    It doesn’t really matter what the price is. What matters is, Peak Oil has arrived and this is what it looks like. Wait until it really kicks in. Those who have not prepared, will be screwed!

  7. DC on Thu, 12th Apr 2012 7:33 pm 

    And locally its $5.90(US) for an imperial gallon. And no let up in the gas burning trash bins here either. Lots of whineing from people that demand ‘cheap gas’ so they can rush to local wall-mart for there feedlot psuedo-beef fix. What this guy does not grasp(he is amerikan after all),in the EU gas-takes are high. And those taxes have funded Rail, trams, bike infastructure and so on. Yes there are still too many cars and planes, even in Europe, but at least cars dont get the free-ride they do here. In N.A. gas taxes go into general revenue and are fairly low over-all. The amount we collect from gas taxes does not even cover the basic costs of car-dependant infastructure, 12-lane freeways, policing, repairs etc, let alone leave anything for non-car alternatives.

    So he may a point(kind of). Higher prices in amerikaland DO largely end up in the corporations hands. But how is that any differnt form anything else in the Us? Since they refuse to tax fossil-fuels at a proper rate, they are ironically going broke trying to maintain car-dependancy and wall-mart. Too bad for them.

  8. MrEnergyCzar on Thu, 12th Apr 2012 10:42 pm 

    Gas was $36 per gallon during, I think, the Kosovo or Bosnian war. Gas stations were empty so gas was sold on the side…about $8 per liter bottle.


  9. Kenz300 on Sat, 14th Apr 2012 9:30 pm 

    The auto makers are producing more 40+ mpg vehicles and are selling them. Some people are starting to change their gas guzzling habits. Gasoline consumption in the US is dropping over the past several years. Every electric vehicle sold is one less customer for the oil companies.

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