What if gas suddenly went WAY up?

Gas prices now are about twice what they were in early 2008. People are so used to paying $3.50 for a gallon of gas that it has become the norm. I even had my wife say some about how “cheap” gas was when it dropped locally below $3.00 per gallon last year. Hmmm…..

With the continued unrest in the Middle East and the rest of the world it got me thinking: What if gas climbed upwards of $5.00, $8.00, or even $10-$12 per gallon? How would I handle it in the short term and what would the long term effects be?

gasoline-prices-in-california

Short Term

My first thought? I don’t have enough. Storing away an extra 30 gallons along with what is already in my two vehicles at any given time would provide some cushion but not much. The reality is in the short term if prices were to drastically go up I am going to pay the price and reduce cost elsewhere. I have to get to work regardless. Trips would be fewer and selective as to what is done while out burning expensive fuel.

Those with smaller economy cars that get good gas mileage will have an advantage due to lower expenditures for the same distance driven. My vehicles get 17 mpg and 13 mpg. I am behind the eight ball when it comes to miles per gallon.

Motorcycles would also be great vehicles in a high cost fuel environment.

New York And New Jersey Continue To Recover From Superstorm Sandy

Long Term

I’m screwed. I have several mountain bikes. If high cost fuel became the norm – and I am talking upwards of $8-$12 per gallon – it would have a huge impact not just on personal transportation cost but on goods and services as well. Most all items bought and sold are transported via truck. Fuel costs double, triple, or worse the cost of those items will increase dramatically as well. Think wages will increase at the same rate? I don’t. I could see the beginnings of an economic collapse due to this.

The dollar would buy less and less. Everything becomes more and more expensive. People purchase much less thus businesses receive decline revenue. Businesses shut down or reduce costs (lay people off). Unemployment skyrockets.

One domino falls and pushes over another one…..and another….and so on.

Long term a fuel efficient vehicle would be very valuable in adapting as well as much larger fuel stores. Should the crisis last long enough getting back and forth to work would be the last of peoples worries.

So – how much gas do you have stored?

Rourke


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34 Comments

  1. This us one of those areas we struggle with. If it were possible and somewhat affordable to store 100 gallons or more for years at a time we would be all over it. As it is, we rotate about ten gallons treated with stabilizer every few months and never let our cars get below half a tank. This will serve us for evacuation purposes but that’s about it.

  2. TRASH “”””””” Reports from the oil and gas industry say the US is now second as to Saudia as to production. Gas should be $0.50 a gallon There is massive greed from banks to credit card person in the gas industry companies along with federal and state Taxes, and they keep going up.

    This whole market is a scam the government puts people in jail during disasters for price fixing why not ever person connected with high gas prices at the pump near you.

    Mark

  3. The answer is very simple guys and gals….having 75 gallons saved up (and the hassles of a rotation and refill program) is not going to matter much in a real SHTF scenario.

    Electric vehicle with Solar PV on your own roof. Slam dunk. You want an inflation hedge, there it is.

  4. 100 gallons of 93 octane gas and 100 gal of diesel on stabilizer . I rotate out 10 gal a month and pour in 10 fresh gal of each .

  5. 1100 gal.of gasoline, 850 gallons of diesel in underground tanks and facilites for making biodiesel at the farm/retreat.

  6. I have lived “off the grid” for over 30 years. don’t have a TV, No radio except a crystal set, closest neighbor over 7 miles away. wireless internet is my only modern convenience. Quite a few folks here in the remote mountain and AG country where I live are building wood gas generators( a guy I know runs a 350 Chevy Pick Up off of nothing more than smoldering wood chips)I have powered my home for years with a wind solar Hybrid system I designed and put together myself. At roughly only 40-60% efficient, electricity and electrically powered vehicles and appliances are out of the question in a real SHTF scenario. Central and northern Europe ran cars, tractors and generators during WW2 when gasoline was virtually unavailable, on nothing more than smoldering wood chips( Hydrogen)

  7. @Jeff, Sir, the “efficiency” of solar electric and electric cars has nothing to do with its cost effectiveness or its function in a SHTF scenario. Simple matter of picking the right number of panels.

    About 7 to 10 panels to power a car about 30 to 40 miles a day.

  8. Unless we all begin using a horse and buggy, we’re screwed. I live in an area where the Amish use horses for everything and it sure looks like a great way to live! Not very practical, but never the less a simple way to live life.

  9. 100 gallons of diesel in 20 (5 gallon) containers.

    35 gallons gas in the “toy hauler” RV. 10 gallons gas in containers for lawn mower and chainsaw.

    Around here lots of farmers have 250 or 300 gallon tanks with farm diesel. My goal is to have one in 6 months, but at today’s prices it will be a big hit on the budget to get it filled. Locating it so it is out of sight is the main issue. If we can’t see it, it is also tough to get to with the truck.

    As to the US producing what should be cheap fuel, I recently read where the fracking wells to date have produced a lot less than the cost of putting them in place. They are hoping the wells produce for a lot of years to amortize the costs to become a money maker. If we had to pay what it costs up front, then we would already have $7 a gallon fuel, maybe more.

  10. I consider myself an “Occupy”-“Tea Party” free market capitalist libertarian. On one hand I think minimum wage should be zero and on the other hand I can’t figure out why Jon Corzine is not in jail. I’m with Marc Farber and Peter Shiff on this one … the Sh*t will hit the fan (It’s just a matter of when). Anyone seen hamburger prices lately? All that said, the first question that need to be mentioned in these scenarios is “When this event happens is it going to be nationally or globally?” because, if it is just nationally then we are going to have a lot more to worry about that a bunch of local armed hoodlums wreaking havoc. The potential for other global players to intervene may be to much for them to resist (See Crimea). While I respect/admire the crowd who wants to live “Off the grid”, I don’t think that is the answer for most folks. I drive to appointments for a living so my life, even with all my redundant back up plans, will be devastated. Although I don’t attend church every week, I do consider myself a god fearing man. I think all the tools we need to fix this are right in front of us. All the good people in my life know they will be able to depend on me. I suspect that is the case with many on this blog.
    Thanks

  11. Eventually very high gas prices might be a silver lining for many of us. We would necessarily be forced to go back to a local economy for goods and services.
    Maybe not a bad thing…

  12. Here in the UK fuel is (diesel) £1.39 litre which equals $10.66 per gallon; and we all live normal lives (4.5 liters = 1 gallon). So i find this article a bit scar mongering. My wife drives a Chrysler 7 seater that does 40 miles to the gallon and my Mitsubishi pick up does 30 miles to the gallon. Here in Europe if the price of fuel goes up the quality of the vehicles get better, road tax gets lower and you get more miles per gallon.
    When things get too expensive, resources dwindle, or out of our reachwe think we will go back into the past but really we as a species tend to innovate and improve.
    Just a thought.
    kind regards

  13. @John, not to be divisive, but y’all aint living normal lives over there. You a bit further along the empire destruction mode than USA, over spending government aka printing money, got a boatload of minorities that are degrading your society, got political correctness to a very incorrect level, use nuclear energy which steals from the future and has no solution, and you think things are “normal”.

    Oh yeah, I get the irony of these comments coming from someone in USA, but….we can both wear the same shoe.

  14. think yourself lucky you do not live in the United Kingdom where gas is at roughly 8(eight) dollars a gallon,80% of which is tax to the government.We are already where you fear to tread.

  15. Most freight in the US is hauled by truck and owner operators are a large proportion of truckers. Owner operators live on a pretty thin margin so a large increase in fuel costs would mean that they couldn’t afford to haul freight. Grocery stores carry about 3 days worth of food without replenishing. This would mean that many people would be depending on the charity of truck drivers to survive.

  16. Well here is the solution to your wories ! & it’ll cost apporx. $.25 to $.50 a Gallon to produce the Gas or Diesel fuel required to run your Vehicles & use all of the statndar PP & PE Plastics your rotating thur your Stockpiles of food & other supplies & they have Numerious models to chosse from !!!!

    http://e-n-ergy.com/ Check the site OR

    goto YOUTUBE & Search UNDER PLASTIC-TO-OIL Video’s

    Signed THE SOLAR DRUID PRIEST !

  17. #nelson
    Sure, but if all truckers have to pay more, they will just charge more, and the grocery will just charge more.

    They won’t bankrupt themselves through mis pricing.

    That said, I put in a LARGE garden that in theory can feed 2 people and 2 dogs for the entire year, with only very minor protein supplement foods, chicken, fish. Feels a lot better that way.

    And the quality is better, and no pesticides, no GMO crapola.

    Later this fall will be the PV system, car will have to wait at least until next year though.

  18. Higher gas prices will lead to much higher food costs. Everything is moved in this country through trucks. Trucks use a lot of fuel and if that fuel is expensive, that cost will be passed on to the consumer. We are seeing it now with inflation.

  19. Most farms have gas and diesel tanks that store 200 gallons or 250 gallons -but its costly to fill and most towns dont allow that amount to be stored-unless one put a tank in the ground.
    Stock- I agree but who can afford an electric hybrid car? We cannot.
    Karen- I agree-we all need to conserve fuel( and water and everything). If we turned to solar and wind that would help. We have solar panels for our electricity and they help immensely- in several years the system will be paid off.
    We have bicycles for emergencies and a horse .Its a good question Rourke and I imagine we would all be staying home more and walking more.It will be terrible if gas prices rise but it seems inevitable. Arlene

  20. I’ve done what I can by fully powering my home with battery backed solar but the fuel prices on your make believe sign are the norm for me at the marina where I have to buy fuel for my two mpg charter boat. Trouble is blowing in the wind. On a good note, ammo prices seem to be coming down.

  21. Appreciate all the responses. Many of you have done an outstanding job. One thing want to mention is my initial preparation are merely to cushion the blow to a price increase as well as a temp shortage – such as what happened after Katrina.

    I have a long way to go and have some good ideas.

    Rourke

  22. For the record, about 35 in the F150, 25 in the Jeep, and 110 in the boat. In winter try to keep at least above 50%.

    500 gal propane tank, (5) 5 gallon propane.

    (10) 5 gallon gas, and plenty of 2 cycle mix

    Planning on building a CMU little storage block house, external to my house or shop for safety.

  23. One of the reasons ammo may be going down is that one of NYS Congressman Chris Gibson
    introduced FY14 Appropriations bill which stated that Homeland Security may NOT purchase any more ammo.Please thank him. 202-225-5614 Address 1708 Longworth HOB Wash DC 20515. His reasoning to protect us all is that HS had enough for their supposed intentions and use.
    Meanwhile here in NYS gasoline is minimal $3.78 per gallon. Propane is $4.94 per gallon
    Heating fuel -oil is nearly $5.00 per gallon.
    What are these costing in other states?
    The news is wrecking havoc with my body and BP. I cannot believe that Christians and Jews are being persecuted and Obama is out fundraising and wont lift a finger to help but wants to send millions to Gaza. Help any suggestions? I cannot believe he is still in office. Arlene

  24. In midwest the LPG is 1.78/gal if you prepay.

    Cord of oak is $200 delivered but not stacked.

    I saw gas at 3.52 for 87 octane

    stock out

  25. Good call on deleting the Lucifer’s Taxi entry. I did not have to read it to know it was bad. From a Christian’s perspective, anyone using the name of the devil is up to no good!

  26. hi all, price for petrol has been 10 dollars per gallon for a number of years here in ireland with diesel only a few cents behind. Its just a part of modern life here unfortunately along with crippling mortgage rates 1500 per month and childcare costs for 2 kids 4 days a week 510 per month not to mention high food prices, it seems most people this side of world work only to pay their bills.

    I think the rising fuel prices won’t cause any calamity rather than just make things much harder. I would thing the best option for us all is a general change of perspective. we need a drive to get back to small community living (where we have all we need) rather than the current capitalist outlook where money is all (and never have enough).
    By the way love the site and posts Rourke… keep up the good work. Pat

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