It would appear the gentlemen running OPEC have decided that $100 oil is a fair price, because as of yesterday, they cut oil production by half a million barrels per day.

According to OPEC (our favorite cartel), the world has an ample supply of oil flowing through our always thirsty combustion engines, and we’re just going to have to like it.

Why should you care?

Well, it basically means that the cost for your last fill up is what you will be paying for the next few months – or years!

Sucks huh?

All joking aside, I’m betting that gas prices will hover around these levels or head back to previous highs because the OPEC based countries are certainly enjoying that massive global wealth transfer that T. Boone Pickens keeps reminding us about.

So what can you do to combat high oil and gas prices?

Aside from signing up at the Pickens Plan and writing your Congressional Representative, you’re back to conserving gas.

I’m a bit of a green living supporter, so I’ve always followed a few simple rules on automobile gas conservation.

1. Don’t drive.  I personally hate driving, so if you can find alternative transportation such as the the subway or the bus – use it!  I no longer live in a metro area, but I do miss the mass transit systems.
2. Carpooling.   Aside from being a great way to save on gas, it opens up the carpool lane for you and your fellow travelers, reduces auto pollution, and allows you to sleep on the way to work.
3. Use a Rewards Card.   There are many different cash back or gas cards available, but do some research to find a card that meets your needs.  I’ve personally held a platinum Discover Card for years and have gotten thousands back in cash back rewards.
4. Follow a Gas Conservation Guide.  Lynn Trong at Wisebread has written an excellent eBook with 108 gas conservation tips.  It’s got many tips that you’ve probably overlooked, but make perfect sense if you give it two seconds of rational thought.  Best part – it’s free!

If you really want to go all out and rid yourself of personal dependency on foreign oil, you can buy a CNG powered Honda GX or convert your current vehicle to run on natural gas.  Due to the basic laws of supply and demand, both ideas will likely cost you a hefty premium, and could actually cause you to lose more money than you would actually save.  Just because CNG prices are less than $1 in some parts of the U.S., doesn’t mean it’s a good bargain considering the cost of implementation.

For those who enjoy T. Boone Pickens’ commentary and prognostications on the energy sector, I’ve included a video link to his latest recent CNBC appearance on Sept 9, 2008, just prior to OPEC releasing news of their cut in oil production.

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