SIMPLE SOLUTION
The situation will remain status quo until something is done - two steps in my opinion.
First, we need to tell the environmentalists to go shove it and begin drilling for oil anywhere we think we can find it, and that includes ANWR. If the drilling adversely affects how and where a moose has a bowel movement then so be it. The earth isn't supposed to be worshipped, it's supposed to be used.
Second, we need to begin upgrading our current refining capabilities and constructing new refineries. It's not an oil shortage that is affecting us, it is a shortage of refining capabilities.
My guess is that "recession" will be a mild word for what's going to really be the end result.
Maybe, maybe not. Everyone seems to be quick to jump into a panic mode lately, choosing to rely more on assumptions rather than an analysis of the data. A recession will more likely be the result of a self-fulfilling prophecy than anything else.
The average american can't afford to fill up their gas tank much more if this keeps up.
But not because of the price of a gallon of gasoline. The average American is in up to their ear lobes in consumer debt. People take out their credit cards like there is no tomorrow and the net result is a nation of people trying to live a lifestyle they have no business even trying to afford. So yes, the average American (read: debt-ridden) who chooses to live above their means will have trouble affording to fill up their gas tank. For those of us who are not the average American, 3.19 per gallon is very much affordable.
When oil companies are raking in $40 BILLION in profits for a quarter, something is definitely wrong with the picture.
Actually, something is definitely right with this picture. It means that the people who are in charge of successfully running these corporations are doing their job very well. If anyone has a problem with an oil company raking in $40 Billion in profits, there is an easy solution to protest against it: stop purchasing gasoline.
Imagine if the airline execs took a lesson from the oil execs as to how to manage a corporation. If CAL was raking in $40 Billion in profits per quarter, would you say there is something seriously wrong with that picture?
At CAL, every $1 increase is another $44 MILLION off the bottom line, or over $176 MILLION off the bottom line just today!!!
So it's the oil companies fault that CAL loses money when the price of jet fuel goes up? How about raising ticket prices and passing the cost along to the consumer?
I just wish our government would grow some balls (even tiny ones would help) and say enough is enough and start going after the speculators who look for every little nuance to push the price ever higher.
That is why they call it a FREE MARKET and not a dictatorship.