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August 12, 2005
Ouch
My gas tank holds between 15 and 16 gallons. I filled up this morning on the way to work, and the price at the pump came to $38.27. On my car radio I heard a story about the runaway U.S. trade deficit. It said gas prices were a factor but not the only factor in another big leap. The per-barrel price of oil hit a record $67.
Who’s to blame?
That’s the question everyone is asking. The usual culprits are the oil companies, the sheiks and, if you’re a Blue American, the oilman in the White House.
I have no insight into the actual answer. Knowledgeable people say that the emergence of China as an economic power and other effects of the global economy are driving up demand for crude oil beyond what the earth can produce. If they’re right, the price is only going to keep rising.
A more optimistic view is that the market will correct itself. Demand will fall as people forgo travel and otherwise economize. People will turn to alternative fuels, buy smaller cars, weatherproof their houses.
Although gas-price crises have come and gone since the 1970s, I’m in the pessimists’ camp on this one. The effects of high oil prices always ripple through the economy, and I don’t see how we’re going to escape the inflationary effects of gasoline at $2.49 a gallon.
There seems to be little political will to encourage conservation or alternative energy. Maybe the new energy bill will make a difference, but as far as I can tell, it asks little of the public. There is no election this year, so there is no pressure on politicians. At least an election would be a forum for public debate about causes and potential solutions.
We in New England are in for a long winter. Fuel-oil prices last year were off the charts, and this year’s will probably be worse. For low-income people, especially older people who resist asking for help, this could mean a real crisis.
$38.27 for a tank of gas. Wasn't I paying just over half that a year ago? Something tells me, though, that I’ll be happy if $38.27 is all I have to pay for my next tank.
Posted by Mike Pride at August 12, 2005 06:29 PM
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Comments
Yes, you put the blame on the right entities, but a lot of the blame goes to the American people. Just look what is being driven on our highways. People that live in Florida and most people that live in New England do not need SUV's. Most people do not need big pickup trucks or any other kind of gas guzzler, but they buy and drive them anyway. I have never owned a 4 wheel drive vehicle and have never had a problem getting out in the middle of winter even though I live in Northern New Hampshire snow country.
I people would stop trying to impress their neighbors with the fancy gas guzzling vehicles and started using some common sense, they would have a impact on how much fuel is consumed.
Posted by: Bill Kaiser at August 15, 2005 11:43 AM
Let the market find its price and the economy will adapt. The economy will run far more efficiently and cleanly when alternative energy technologies become attractive to investors. The government has no obligation in determining the price of oil or any other commodity.
Posted by: fullert at August 16, 2005 09:17 AM
Once again we all seem to miss the point on this one. We go to the voting polls every year and hope to make good choices for those who will represent us and our problems. I am still waiting for all the new ideas of technology to flood us with cost saving living and kinder ways to our planet. I for one, went out and purchased a 4cyl. auto and it should be our elected leaders that should bring a insentive forward of tax credits to people who want to participate. Why is it so hard to move us all into the new age? If it is the investment, then our elective leaders should find ways of bring them forward.We must also look at ourselves and realize that although we work very hard we also use too much
Posted by: Uncle Ray at August 23, 2005 01:46 PM