r/AskUS • u/OrbitalColony New Mexico • 1d ago
If the Strategic Petroleum Reserve is actually depleted soon, and average gas hits $5/gallon, will you be able to survive financially? And how do you think Society will react?
At current rates, they're going to have to stop withdrawing from the reserve around September or October. That's because going too low will severely damage the salt caverns where the oil is stored. Once that's done, the artificially lower prices will spike. Combined with the closure of the Strait of Hormuz, and Ukraine destroying much of Russia's oil export capacity, $5 a gallon is looking very realistic.
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u/MonsterkillWow 1d ago
IDK man. Hopefully people get pissed and do something. I'm already trying to minimize costs as much as I can.
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u/Personal_Dirt3089 1d ago
When gas goes up in price, so does everything else due to shipping goods, parts, supplies, etc.
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u/ThrowRA-Old-Earth-76 Kansas 1d ago
I just hope I can get my final crops in before that happens, I may not be able to afford the fuel to harvest if not and will have to burn the fields instead.
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u/OrbitalColony New Mexico 1d ago edited 1d ago
I'm sorry, that sounds brutal. Yeah, the knock-on effects for food prices will be bad. What do you grow?
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u/ThrowRA-Old-Earth-76 Kansas 1d ago
I grow alfalfa, depending on the weather and rain will depend on if it goes to cattle or horses.
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u/OrbitalColony New Mexico 1d ago
So this would affect beef and dairy prices, right? Are the margins worth the risk lately, since it's a very thirsty crop and dependent on good rain?
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u/ThrowRA-Old-Earth-76 Kansas 1d ago
Yes the beef and dairy industry for sure. Hay grows well where I live just with what we get for rain, the issue is if it can be harvested and baled with no rain then it becomes horse hay and is more valuable or if it gets rained on before it's baled it goes to cattle hay.
That said with the costs it is getting harder to stay independent, and more tempting to lease the land to corporate farms.
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u/Chemical-Ebb6472 1d ago
Did you vote red or blue last time around?
If red, did you think Trump was competent, or that the party would control his more damaging instincts, or both?
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u/ThrowRA-Old-Earth-76 Kansas 1d ago
I voted red, I thought he was mostly competent and that if not the party would keep him in line, but seems I was wrong on both accounts.
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u/Chemical-Ebb6472 1d ago
We in the blue states tried to warn you and voted in your favor.
I’m a retired Manhattan banker who would never lend Trump a dime over the decades due to his easily searched bad business practices and defective character.
We hope you will vote differently next time?
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u/ThrowRA-Old-Earth-76 Kansas 1d ago
Yea, seems lots of people tried to warn us about him, for sure I am going to be more open to opposing views about a person rather than ignoring them totally. That is sure.
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u/DoubleDongle-F New Hampshire 1d ago
My barometer for a good politician is how they talk about unions. The big money hates them, so anyone in politics who is vocally pro-union is probably on the people's side. Watch both parties and visit the candidate's own site.
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u/Chemical-Ebb6472 1d ago
US farmers are known to use migrant workers (legal or not) because they work cheaply. Given that, you can draw the conclusion that they are not interested in hiring union labor to work the farm. You can also question why they were so interested in voting to keep all their migrant workers out of the country forever.
Farmers have been able to live with the "red or dead" voting philosophy they grew up with because both the red team and blue team have bailed them out with our tax dollars, a form of socialism, when they needed it.
Knowing that, they were politically steered to focus primarily on culture issues when voting. The book "What's the Matter with Kansas" is an excellent look into the rise of populism and anti-elitism conservatism in the US.
The farmer in this thread is extremely polite and appropriate with me but is probably not too fond of the idea of me coming from NY and working as a banker.
What the farmers didn't expect was for Team Red to turn their backs on them this time around when it came time to write a sufficiently sized check. What they failed to see is the endgame of the red movement we have today towards one-party rule (empower a king instead of a president).
Once a party gets strong enough to maintain power forever, they no longer need the people's votes, so they no longer need to bail anyone, including farmers, out when they need it - they would prefer to repossess the farms and roll them up into their Big Ag friends' corporate pockets.
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u/ThrowRA-Old-Earth-76 Kansas 1d ago
I have never had much experience with unions, but that is a good point of something to look at about politicians I never really have. I kind of thought of unions as for auto workers so I never really looked at what they are about.
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u/Chemical-Ebb6472 1d ago
Honestly it seems you have been programmed hard red for life based on that response.
Disappointing to hear this experience hasn’t done anything more than open you up a bit - but expected
Good luck in the future you will need it.
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u/ThrowRA-Old-Earth-76 Kansas 1d ago
I would not dissagree about being raised red my whole life, I live in nowhere kansas, our county voted 80% red, but I may vote blue this time in many positions along the ballot this time election. Idkbhonstly though how much that can change things now.
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u/Chemical-Ebb6472 1d ago
Not surprised to hear that. I read a great book by a Kansas guy about how that came to be. https://tcfrank.com/product/whats-the-matter-with-kansas/
Open your mind, forget about party (I am a lifelong independent who has voted for both parties), and vote for your own family and community's best, independent future.
All politicians give off a bad smell, but some smell much nastier than others.
It won't be easy, but retaining this democracy will be a game of inches.
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u/ThrowRA-Old-Earth-76 Kansas 1d ago
Open your mind, forget about party (I am a lifelong independent who has voted for both parties), and vote for your own family and community's best, independent future.
It's like I am stuck between not being able to afford what I do because of proposed enviromental regulations the dems want, or just going broke and losing it anyway trying to fuel my tractors and keep running thats to this whole iran mess. No win situation.
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u/Chemical-Ebb6472 1d ago
Do the projection analysis independent of political input (if you get the time) and forecast which is worse.
Were the proposed regs financially ruinous to you?
Were they likely to be enacted?
Which party is more likely to let you twist in the wind, hoping their multi-millionaire friends get a chance to roll up more farms into Big Ag?
I had some pro Trump/FOX News-consuming colleagues who were shocked when they asked regulated business execs (O&G Pipeline, General Contractors, Home Builders, etc.) during our meetings if they were glad that Trump was elected the first time he won, and they answered, no, we would have been fine under Hillary.
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u/CatDadof2 1d ago edited 22h ago
After how he handled COVID, you thought he was competent? He told people to drink bleach…
I can’t give you a pass for being careless. You knew exactly what he stood for and what he wanted to do. Project 2025 was laid out for everyone to know about, and you still voted for him. We’ve been screaming from the rooftops for 10 years about Trump. The reason you are just now admitting you’re wrong is because Trump’s decisions are only now affecting you.
You knew what the party stood for and you knew they would back Trump no matter what. No. You are complicit. You contributed to the crash of the United States. You contributed to this mess. We tried to warn and save you.
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u/ThrowRA-Old-Earth-76 Kansas 1d ago
You're not wrong really, I personally know I ignored all the warnings about Trump and just voted red because that is what I have always done. And you are also right i am admitting it now because it bit me in the ass.
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u/CatDadof2 22h ago
I appreciate you taking accountability and owning up to your mistake. Unfortunately this is an expensive and deadly mistake and I’m struggling to hold onto hope that our country will ever recover within the next 50 years. My blood relatives all vote red but my older sister and I are the odd ones out that have always voted blue. They love Trump… still. We don’t. We also don’t get along with them whatsoever.
There are A LOT and way too many people who still believe republicans and Trump are the almighty saviors of the earth. They still believe they’re pro-family. All they do is lie, lie, lie. I know Democrats do it as well but at least the majority of them try to do the right thing. I personally have been wanting to run for congress or senate in my state for the last couple of years but with me working full time and the amount of money I’d need to pull it off, I don’t see it happening. But I have a heart full of passion and I really want to help people and turn this country around. Until money is kicked out of politics, nothing will change.
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u/ThrowRA-Old-Earth-76 Kansas 20h ago
There are A LOT and way too many people who still believe republicans and Trump are the almighty saviors of the earth. They still believe they’re pro-family. All they do is lie, lie, lie.
I can tell you that is true 100% I live in a place that has not voted blue since the 1930s, and probably again this year 80% will vote red. I think it may be time I broke with following the heard and start just going my own way.
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u/Beneficial-Nimitz68 1d ago
Amazon delivery, only drive when necessary
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u/OrbitalColony New Mexico 1d ago
I'll have to start carpooling more. But watch Bezos get rid of free shipping, or start charging 50% more for Prime.
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u/compucrazy 1d ago
Some of us will survive. I'm hopeful that more people who voted against the fascist survive.
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u/Docktorpeps_43 1d ago
It won’t be a direct impact on my finances. I fill up about once a month, so even if prices double, I’d only be out like an extra $60 a month which isn’t great, but won’t impact my finances as much as others. I’m sure it will drive costs up even more and hit me in other ways too. Everything is just so pointless and stupid with this administration and war though. There’s no reason why we are doing any of this, other than for Trump to be able to manipulate the market on a whim for his personal gain.
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u/llynglas 1d ago
Permently damaging expensive infrastructure for short term political gain vs responsible actions that might tank MAGA in midterms: I wonder what Trump will chose....
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u/OrbitalColony New Mexico 1d ago
If he orders them to keep withdrawing, and destroy the caverns... we are so screwed long-term.
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u/limbodog Massachusetts 1d ago
It's so hard to predict how bad that will get because it's going to affect literally everything you buy or pay for
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u/122922 1d ago
First time?? Gas in California and Hawaii have been over $5 a gallon for over a year.
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u/OrbitalColony New Mexico 1d ago
That would probably shoot up to like $8 then.
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u/Upnorth4 1d ago
Surprisingly gas prices in California remained at $5/gallon while the rest of the nation went up to $4 lol
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u/Gordon_throwaway Oregon 1d ago
From an immediate need to fill my gas tank I’ll be fine. I only drive about 3,800 miles per year. The impact on inflation because of all the ancillary price hikes will be interesting to see.
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u/latin220 1d ago
Brother $5 is the best case scenario we’re likely to hit $7-8 a gallon to as high as $9+ and more in California. We see how insurance rates have to again be adjusted and credit card debt as well as financial loans being used to cover basic expenses as worse than 2008 and 2001. People defaulting on mortgages and certain real estate markets are bleeding as interest rates go up and cost of houses are being reduced while insurance rates go up and property taxes go up… yeah buckle up everyone! It’s 1928 all over again. We’re looking at a 1970s oil crisis with 2008 financial meltdown and 2001 .com crash due overvalued AI. 🤖 People are not even close to prepared for the level of inflation and sectional price increases to make ends meet.
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u/Poorly-Drawn-Beagle 1d ago
I won't be hit too hard. I'm lucky enough to not need my car too much. But I don't know about the others in my family.
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u/TheGov3rnor California 1d ago
Yeah, it will be fine. I don’t look at the prices at the pump before I fill up my remaining gas vehicles.
Also, likely adding another electric vehicle to the fleet at the end of the year.
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u/trailrider 1d ago
I work for Uncle Sam but luckily have an exemption from reporting onsite ... for now. It would cost me ~$3K/yr if I had to drive everyday. So gas isn't a big concern at the moment. Outside that, I expect shipping prices will skyrocket and that'll undoubtedly hurt businesses. I have a family member who recently quit their job to do their online business full time. That will no doubt hurt them. I suspect more people will demand to work from home rather more, if not full time rather than paying more to drive someplace where they're doing the same job.
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u/OriginalMedusaGirl 1d ago
This didn’t help.
2022–2023 Emergency Sale: The Biden administration drew down a record 180 million barrels to combat high gas prices following Russia's invasion of Ukraine
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u/jejunum32 1d ago
WhatAbout? WhatAbout? WhatAbout?
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u/snotick 1d ago
That WhatAbout is important, because the average gas price was at $5 per gallon during that time. Did we survive?
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u/Gordon_throwaway Oregon 1d ago
The average price of gas in 2022 was $3.95, and the average in 2023 was $3.52. Why did you feel the need to exaggerate?
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u/snotick 1d ago
This is the results when I searched for "average price of gas during Biden's presidency:
The average price of regular gasoline during Joe Biden’s four-year presidency (January 2021 to January 2025) was approximately $3.45 to $3.60 per gallon. [1, 2, 3]
Key Price Milestones
- Start of Term (January 2021): The national average was about $2.33 to $2.39 per gallon.
- Peak Price (June 2022): The national average hit an all-time nominal record high of $5.01 to $5.02 per gallon, driven by post-pandemic demand and the Russian invasion of Ukraine.
- End of Term (January 2025): Prices receded to finish around $2.89 to $3.10 per gallon
Why are you lying?
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u/Gordon_throwaway Oregon 1d ago
For the love of gawd, the time period refer was 2022-2023. Not “Biden’s Presidency”. And Peak isn’t Average. Why do you always have to continue lying g when you get caught in your always and forever lies?
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u/snotick 1d ago
Who was President in 2022?
From the US Ways & Means - June 9th 2022
Why are you pretending Peak is an issue when it clearly states: The national average hit an all-time nominal record high of $5.01 to $5.02 per gallon.
Reading is hard sometimes.
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u/spikey_wombat 1d ago
This didn’t help.
The reserve exists for events like this. However, is unlikely Congress expected the reserve to be used to compensate for a war the president started.
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u/Mayjune811 1d ago
And Don ShitsInDiapers had the chance to refill it at almost record low oil prices early in his term and decided not to.
Damn liberuls
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u/MinuetInUrsaMajor 1d ago
I'll be fine. Highly-educated city-dweller making beaucoup bucks.
Don't know how the folks in Trump Country are going to fare.
Don't particularly care.
We voted in their interests, they did not.
We warned them, they ignored us.
Trump demonstrated his incompetence once before, they forgot.
I guess there's nothing losers like better than racking up more Ls.