Jet Fuel Prices WILL Be Climbing A LOT, and Soon

[PCL_128]

Well cant argue with your "hemi" gas guzzler

I wouldn't call it a "gas guzzler." It has multi-displacement technology that shuts off half the cylinders in cruise. I average about 24 mpg, but it'll do about 29 mpg highway at 60 mph. That's pretty good, in my book. And the best part? It has 350 hp available whenever I want it.

but the car is far from a toy and 0-60 is just as fast as any other standard car.

I doubt that. What's the time? Besides, I'm not interested in a "standard car." I like a little extra pickup.

You have plug ins at your airport or the ability to get one available to you, you just want an excuse to not make a difference........

I'm pretty sure that AirTran or the airport authority isn't going to spring for electrical outlets in the parking lot just so I can plug in a crappy electric car with a horrible range.

 

[JumpJetter]

Just read it in a couple of articles within the last week or so. I'm sure you could find a reference with a thorough google search. I'm about to go fly, so I don't have the time to dig it up.

You find the source yet?

Don’t Blame Speculation—Commodity Prices Are Driven by Fundamentals

John Derrick
Director of Research
U.S. Global Investors Inc.
[email protected]
May 28th, 2008
U.S. Global Investors (Nasdaq: GROW) recently hosted a webcast titled “Energy and Commodities Trends: Speculative or Sustainable?” to provide a closer look at the current strength in natural resources prices. Our timing for this topic was good: oil prices hit a record $135 a barrel last week and drivers get more and more depressed every time they pull up to the gas pump.
Americans want to know how long we are going to have to put up with this. The answer to that question depends on whether one places most of the blame for today’s prices on market speculators or on a fundamental shift in global supply and demand trends.
When we answer that question, we think it’s important to offer both short-term and long-term viewpoints.
The flood of new money into energy and commodities from pension funds, hedge funds and other large investors has created some frothiness in those markets. We said recently that a short-term correction in the price of oil was likely, based on our statistical models.
But we think the long-term price trend will continue upward due to global growth.
The world is growing more populous and more prosperous. Rising living standards in the developing world are increasing demand for resources, which is driving up commodity prices across the board because supply can’t keep pace.
People around the world are consuming more calories (greater demand for food), they are buying more cars (greater demand for steel and oil), they are building bigger homes (greater demand for cement and copper), and so on.
And there are also interrelationships between these trends—for example, vast amounts of farmland in the developing world are being transformed into housing tracts, which reduces the acreage for food production. This pinches supply at the same time that demand is soaring.

The chart above clearly illustrates this prosperity trend. In China, per-capita GDP has risen from $339 in 1990 to $2,574 this year—that’s nearly an eightfold increase in less than two decades. In India and the Middle East, the numbers have more than doubled, and Brazil is close to doubling. Rising incomes lead to greater consumption of energy and commodities, which exerts pressure on prices.
Along with growing populations and growing prosperity, there is also growing urbanization. In China we're expecting roughly 500 million people to move to cities or towns over the next three decades. India’s urban population is expected to reach 540 million by 2025, roughly double today’s level.
This trend has been at work for years. About three billion people—nearly half of the world—live in urban areas right now. To give you an idea of the scale, that’s more people than the total global population in the mid-1960s. To keep up with the increase, cities are expanding their water systems, electricity grids, roadways and other infrastructure. Estimates are that $40 trillion will be needed over roughly the next 20 to 25 years to build out this infrastructure, which will exert price pressure on commodities.
Another way of weighing speculation against fundamentals is to look at metals prices.
Many metals are hard to speculate on because they are not listed on commodities exchanges—these include iron ore, steel, magnesium and cobalt. Research from Lehman Brothers found that a group of key non-exchange-traded metals shot up 600 percent between early 2002 and early 2008. During the same time, prices of listed base metals—copper, aluminum, nickel, zinc and lead—rose only 250 percent. This tells us that fundamental demand is the dominant factor in driving metals prices higher.
People want to blame speculation because that would give them hope that today’s food and energy prices will return to “normal” after the bubble bursts.
This is the way it has worked in the past, but most people don’t understand or perhaps don’t want to accept the fact that we have reached a tipping point across the board in commodities that will support even higher prices in the future.
John Derrick
U.S. Global Investors Inc.
[email protected]
May 28th, 2008
For more insights and perspectives from U.S. Global Investors, visit CEO Frank Holmes’ investment blog “Frank Talk” at www.usfunds.com/franktalk.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

 

[jetflyer]

Supply hasn't increased hardly at all in 3 1/2 years and supply is rising at a phenomenal rate.

PCL,
You've got your head too far up your Hemi's tailpipe to realize there really is a supply/demand problem brewing.

Like the IEA says supply is increasing at 1% and demand is increasing about 3?% This can't continue.

The price has to rise to make both numbers equal.

 

[Lear70]

I didn't grow up on a farm but I don't think skiing behind a boat and blazing around on jet skis would qualify as "tending to the farm".

And I never said that farming was ALL I wanted it for; quite the opposite, I was very open that I wanted the vehicle for work and play.

YOU are the one who went off on a tangent, focused on the jet skis and boat part, then got all high-and-mighty.

Save your recrimination for someone who actually will change the way they live their life based on what YOU believe. Everyone is ENTITLED to a little R&R with their family, and I sleep just fine at night with my choice of lifestyle...

 

[Wiggums]

Unless someone can explain this LOGICALLY and MATHEMATICALLY to me exactly WHY Diesel has been skyrocketing in price, even above unleaded gas, I can only assume that this is being controlled by the oil companies.

Worldwide demand for diesel is way up, much more so then demand for gasoline, which is actually falling in the US. Outside of the US there has been a huge switch to diesel fuel, in the EU over half the new cars sold are diesels. Because of the lower demand for gasoline in the EU they have an excess some of which is shipped to the US, increasing supply and slowing the increase in price. The demand for diesel in also way up in Asia, not as much so for gasoline. If you look at the rise in oil compared to the rise in gasoline you see that gasoline has not increased as much as the price of oil, while diesel has.

 

[Wiggums]

I average about 24 mpg, but it'll do about 29 mpg highway at 60 mph.

Yeah sure you do, you average 1 mpg over the EPA (revised) highway rating?

It has 350 hp available whenever I want it.

If you do avg 24 mpg you are driving 55mph in the right lane and basically never using that 350hp.

 

[PCL_128]

Yeah sure you do, you average 1 mpg over the EPA (revised) highway rating?

It has an on-board computer that tracks the average fuel economy each tank of gas. It always ends up between 23 and 25 after using a full tank. Believe it or not, those are the facts.

If you do avg 24 mpg you are driving 55mph in the right lane and basically never using that 350hp.

I usually go somewhere between 55-65 to save gas on the highway, and yes, I very rarely use the hp. But it's nice having it there for rare occasions.

 

[Wiggums]

It has an on-board computer that tracks the average fuel economy each tank of gas. It always ends up between 23 and 25 after using a full tank. Believe it or not, those are the facts.

Too bad you can't buy the diesel version here, if you can get 24 out of the V8 then you'd be sure to get 40-45 from the diesel. Your car is still a gas guzzler, if you'd bought an Accord and drove it in the same manner you'd get 40mpg too. Sure it's not union built, but the Accord is just as American as the 300C, probably more so.

 

[jetflyer]

A Must Read From:
The Oil Drum-Europe:
Why oil costs over $120 per barrel
LINK: http://europe.theoildrum.com/node/4007#more

This is a great explanation of why oil prices have REALLY RISEN.

These geologists/experts leave no stone unturned in their analysis.

They talk about Energy Returned on Energy Invested, decline in current fields, new capacity additions, spare capacity, peak exports and the export land model, the falling dollar, and how subsidies in some countries distort the market.

Become informed,
Jet

 

[Lear70]

Where can you buy the Diesel version. Canada?