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What if Oil Hits $200?

Inflation would skyrocket as American society reorganizes

By Kevin Spak, Newser Staff

Posted Jun 28, 2008 3:35 PM CDT

(Newser) – Wall Street has predicted $200-per-barrel oil for months, but what if it really happens? Not only drivers would be hurt by such a spike, the Los Angeles Times reports: Inflation would skyrocket as oil-derived products turn pricey and "the purchasing power of the American people would be kicked in the teeth so darned hard that they won't have the ability to buy much of anything,” one energy expert predicted.

Automakers and restaurants would suffer the worst. But such high prices would also reorganize American society, making proximity more valuable. Home prices would swing depending on the commute they create, and companies would likely consider de-centralizing operations. “It would be the urban-planning equivalent of an earthquake,” one LA councilman said.

A woman counts cash after putting gas in her Cadillac Escalade full-size SUV at a Chevron station in Santa Monica, Calif., Friday, June 27, 2008. (AP Photo)

A full-size GMC pickup passes a Chevrolet Yukon SUV at an Exxon station in Santa Monica, Calif., Friday, June 27, 2008. (AP Photo)

A person pulls a gas pump from his vehicle after filling his tank in Philadelphia, Friday, June 27, 2008. (AP Photo)

Graphic shows the price of crude oil (AP Photo)

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What if Oil Hits $200?

Inflation would skyrocket as American society reorganizes

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Passes inflation-adjusted all-time peak

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Speculation is driving oil up, and that's a concern for consumers, economists

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Price will rebound with economy, likely to hit $200 a barrel in 2030

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A weakening dollar and falling inventories of oil are pushing crude prices up

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What if Oil Hits $200?

Inflation would skyrocket as American society reorganizes

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OTHER STORIES ON OUR RADAR

inflation • oil • commute • oil price • $100 a barrel oil

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

$4 Gas Expected This Spring

Energy Department predicts gas prices to peak soon

Oil Flirts With Record-High $104

Passes inflation-adjusted all-time peak

$100 Oil Fuels Recession Fears

Speculation is driving oil up, and that's a concern for consumers, economists

$100 Oil Will Return Soon Enough: Study

Price will rebound with economy, likely to hit $200 a barrel in 2030

Oil Gushes to Record $105.96

A weakening dollar and falling inventories of oil are pushing crude prices up

About Us

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Newser By Users

Community

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