Gas Prices Going Up?

its no more bearish than the oil market, and it is a commodity.

that being said, they are pulling it out of the ground at record rates and it may be trading on fundamentals moreso than oil

 

It's a limited resource so it's bound to go up... Sure there will be ups and downs but over a 5-10 year span the only direction will be up...

3-5 years from now $3.00 / gallon will be common for regular unleaded.

 

I think the difference is they've found huge new domestic supplies of natural gas.

 

Natural Gas might be considered more <i>Local</i> than Crude Oil and thus has reduced levels of speculation.

There are plenty of pipelines to send it around the United States (or any country with abundant supplies), but shipping Natural Gas overseas is more involved than putting Crude Oil on tankers for shipment.

 

Natural Gas is a local market

Oil is a global market, a natty trader told me that a couple of years ago.

 

Yep, $2.90 for premium here in Austin. If this discourages more people from driving, I don't mind, less traffic on the road. Summer of 2008 was great in that respect.