Gas prices.. just how high is too high?

The national average price for gasoline is now more than $4 a gallon. Drivers around the country and here in Houston are feeling the pinch. And it's going to get worse.
Analysts say prices could hit $4.40 a gallon in the upcoming weeks. Some people in Houston are already making drastic decisions, including Ashley Rodriguez and her fiancée Tony Chavez. Watch the story here.

"I want to save money for my wedding, but with gas prices, it's like I'll never have my wedding, it's pretty horrible."

Her situation is devastating for the young couple, but not surprising to Matthew Simmons. As founder of Simmons & Company International, an energy investment banking company. He's been writing and talking about a worldwide oil shortage for years and says we could be on the cusp of a major crises.  "We are right on the bubble of having the lowest amount of usable gas and diesel in the United States," he said. "All we need is the threat of shortages and everyone will top of their tanks, and we'll drain the gasoline supply."

Even with that dire prediction, Simmons says gas in America is still a bargain. To prove that point, he plans to reimburse his employees a dollar a gallon for the gas they use to commute to work.   "That basically works out to be $80 a year (per employee)," he said.  He also points out that comparably, gas is about 21 cents a cup.

Simmons doesn't really buy all those promises you hear from oil experts and politicians, either.  He says oil prices are going to continue to go up, and there is little we can do about it.  "I'm just a realist," Simmons said. He says the only options to make up for the rising prices are to travel less or grow food at home. Cheerful!

Comments

[FARfetched]

The young couple who want to get married could do it any time. All it takes is a marriage license and a willing preacher (or judge) to perform the ceremony. I would think that marriages are one thing nearly immune to the price or availability of fuel.

The stark reality is, demand for petroleum is climbing and the world can't produce much more. Worse yet, the amount per year is likely to start going down in a few more years. We're all going to be using less oil soon, and it will be much less painful to do it on your own schedule.

[hugh owens]

Boy oh boy , is this the kind of "journalism" that we are going to be subjected to for the next 5 years? Thank god for intelligent voices like Matt Simmons. NPR yesterday had nitwits protesting "high" gas prices by what? Well by banding together and showing the oil companies by not buying any gas for a week! People should stop feeding the trolls and start educating them to the real world of supply/demand imbalances, resource depletion and energy economics. I normally try not to to participate in rude ad hominem attacks on the feeble minded. Something in me just snapped, That's all. People! Educate yourself before you parade your ignorance for the world to see.

[CCOV98]

I say we all hire attorneys and sue opec, for what i dont know but that is what the attorney is for to find a reason and just keep sueing them until they get the point.

[Anonymous]

I was surfing the internet today and found an interesting video by a man named Lindsay Williams about the gas prices and the energy crisis. Worth watching.

[jake38]

The reality of world peaking oil extraction rates is far more serious than dealing with fuel shortages. Food production is directly tied to a steady and ever increasing amount of oil and natural gas available.