Gasoline at $10 Per Gallon May Prime the World Wide Web

Position Yourself on the Web for the Coming Economic Earthquake

The realistic prospect of $10-per-gallon gas could fuel a surge in Internet and Web usage unlike any before seen. When a drive to the mall costs $10, will you go as often? When gas for getting to work costs $12 each day, can you afford to continue the commute? Next year, expect the Web to see an unprecedented jump in traffic. Online shopping, gaming, video-on-demand and work via broadband Internet connections should take market share from conventional shopping, entertainment and work. Using the Web for more of your daily tasks and leisure may save you thousands of dollars each year. Starting a Web-based business may be even smarter.

The $10-Per-Gallon Gasoline Problem

Gas prices have tripled to $4 per gallon in a few short years. Demand from China, India, and other developing nations for oil and gas is accelerating, while EIA data shows world production has plateaued. Instability in oil-rich regions such as the Middle-East, Venezuela and Niger also pushes oil prices upward. Some countries already have gas prices above $8 per gallon. Gasoline may reach $10 per gallon here as early as next year.

ABC News reports Americans commute on average 32 miles per work-day. With 25 mpg average gas efficiency, gas at $10 per gallon turns 160 weekly miles into $3200 a year, excluding non-work trips. From Census Bureau and CBBP data, that's equivalent to an 8.4% commuting tax for the median family.

In the short term, high gas prices will likely reduce spending on other goods and services, slowing the economy. Industries especially dependent on oil -- such as airlines and chemical companies -- will suffer the most and may lay off workers to keep costs in check, increasing unemployment.

Longer term, higher energy prices make alternative sources -- such as nuclear, solar and liquefied coal -- more attractive. This can stabilize the energy market, but at a higher cost.