Wound Up wrote:
> d
>
>> So, you're predicting that this huge bump in fuel costs is a long-term
>> thing and not just a blip?
>
>
> Scuse me while I chime in... most economic forecasts say there is no
> doubt it's a long-term thing for the US to see regular to average over
> $2, anyway. Count on it all next year.
>
> We need more refinery capacities and fewer formulations of gasoline to
> make an appreciable difference. OPEC doesn't have much actual spare
> pumping capacity.

We can't really blame the current price spike on OPEC, IMO. They are
pumping as much oil as is needed. You're right about the refinery
capacity being the real problem. It will take 2-3 years to correct it
and bring capacity to acceptable levels. Then prices will stabilize for
a good while. I do think that $1.80-$2.00/gallon gas will be the new
benchmark when the dust settles.