Gas Falls Below $2; Let the Trance Begin
The unthinkable has come to pass: Gas has fallen below the $2 mark hitting $1.989 today. What does this mean? A recovered SUV market? The end of plug-in hybrid development? No, of course not.
But are ultra-low gas prices (so low that over the summer, no one would have believed them possible) a good thing? Well—probably not.
It’s true that high gas prices on top of the current economic crisis would spell disaster. However, gas prices have bottomed out largely because of the economic crisis that has lowered demand so drastically.
President-elect Barack Obama hit the nail on the head when he said in his recent “60 Minutes” interview, “This has been our pattern: We go from shock to trance. You know, oil prices go up, gas prices at the pump go up, everybody goes into a flurry of activity. And then the prices go back down and suddenly we act like it’s not important, and we start, you know, filling up our SUVs again.”
Rest assured, the shock will be back. It’s just a question of when.
