Why I Think Gas Prices in USA Will Remain Low for a Couple of Years... [View all]

[Stuart G]

one word...only one word...

TESLA

I recall in 2008 around election time, gas prices went down significantly. In Missouri and in other parts of the country a gallon of gas was somewhere around $1.75 cents a gallon. (or less) After the election..the prices gradually rose. why?..I believe that refiners and suppliers lowered the price to try to convince the country that everything was ok, things were fine, no we didn't have to change things to a Democratic president..It was a concerted effort to help McCain win. Refiners and suppliers..etc, did not want to worry about additional regulations on oil, its production, and sale. period. (after the election the price gradually rose where it remained high for a few years....remember?)

About a year ago, the oil companies and the car companies got together to deal with the threat of ..TESLA. No, I do not have the direct link, but I recall the meeting. The threat of TESLA is real and significant to these huge multinational corporations. If people get used to paying $1.50 for a gallon around the USA, the thinking goes..they will not buy an electric car of any kind..

One of the Saudi oil barons admitted a few years ago, that the refined price of gas at the pump has little to do with the world market price.. If that is true, then fixing the price at the pump for a long time would fool U.S. buyers into thinking that a buck and a half is a good price so what the hell is this electric car thing about?..Would they do that to get rid of TESLA?..what do you think? Could they do that if they wanted to? After destroying demand for the electric car in the USA, the price can go back to 4 or 5 dollars a gallon or whatever they want, to make up for a temporary loss.

Sure, we read about an "oversupply" and incredible "production of home grown oil" or whatever. But, I believe that this means nothing to these huge corporations. ..Get this..$1.50 a gallon in todays world, really is 38 cents a gallon in the 1960s world. taken a 400 percent increase of prices of stuff since the 60s. What did a car cost in the mid 60s?..or a house?..So, a buck fifty would be really cheap for gas..given reasonable inflation...people could get used to cheap gas real quick..and forget the expensive stuff..
Could they do it to kill the TESLA in the USA? .TESLA is a new company that does not really need the oil giants or the other car companies..does it? Right now, in California, there are about 3000 employees making these things. They are producing these cars in a plant that used to make Toyotas and Chevy compact cars. That plant was designed to make cars. This company is making them today as you read these words. Do you think that big oil and the other car companies would combine their resources to try to stop this company and others that make these things that are real threats to them? I think they would...(and this does not take into account that Tesla is currently building a new battery factory to greatly increase the distance needed for a charge and improve the technology, oh and that factory is right here in the USA, in Nevada..)