Search the Web with WebCrawler
Tweet Follow @BORNCURIOUS Daily Question Blog: TWO DOLLAR A GALLON GASOLINE WITHIN ONE MONTH

Sunday, May 1, 2011

TWO DOLLAR A GALLON GASOLINE WITHIN ONE MONTH

There are approximately 150 million motor vehicles on the road in the United States of America.

This figure represents the number of automobiles only. There are approximately another 95 million trucks,construction off highway vehicles etc.

For the purposes of this article I will stay with the 150 million vehicle figure.

For my simple solution which will drive gas prices at the pump to $2.00 a gallon within one month lets say that the average fuel tank in these vehicles holds 14 gallons.

Okay are yout still with me? Now ,lets say, for the sake of this discussion, each of these vehicles fills their tank about every 10 days. Extrapolating will yield a total figure of 2 billion, one hundred million gallons of fuel pumped out of the nations supply and into storage (i.e. stored in those 150 million fourteen gallon fuel tanks).

So ,if, starting this 10 day "fill-up" cycle Monday morning, May 2,2011, and continuing it though May 11,2011 each vehicle, instead of filling their tank,opted to instead pump only 7 gallons into their tanks. In other words, 150 million car owners decided to fill their tank half way instead of full.

Within 10 days the amount of gasoline stored in motor vehicles in the United States would drop from 2 billion, one hundred million gallons to a new figure of approximately:

1 Billion, 50 Million gallons

In just 10 days we will have added over 1 Billion gallons to our fuel supply.

How fast would this supply/demand reversal reduce prices at the pump and by how much?

I am too old and too simple minded to figure that out for certain but my hunch tells me we would be looking at $2.00 a gallon gasoline by the end of May

What do my readers think?

0 comments: