$4/Gallon Gas!
Reading the headline, most people would think this would be a post about how much paying $4/gallon for gas hurts or that there must to be a way to bring the price down. While emptying my pockets just to fill my tank is admittedly painful, especially with a long commute in a vehicle that gets 15 MPG, I’ve come to change my opinion on the subject.
$4/gallon gas is AWESOME! It’s causing regular people like you and me to re-evaluate our attitudes on fuel, oil and conservation. It’s changed our driving habits and our attitudes about cars. It’s motivating businesses to make big changes in the way they produce and ship goods.
What I first saw as a temporary nuisance and then as a threat to our economy, I now view as motivation for positive change. If America is truly addicted to oil, then we must break the addiction. And, ask anyone who has ever had to confront an addiction and he or she will tell you it’s not an easy thing to do. Just like a heroin user faces a painful detox, our economy and American lifestyle, built on cheap oil, must undergo some suffering while we kick the habit.
We’re already in the initial stages of innovating our way out of this mess. However, one significant threat stands in our way–falling oil prices. That’s why we need $4/gallon gas. Without it, it’s business as usual.
Even though it may feel like a bad thing, $4 gas is the stepping stone to a much better, and healthier, global environment. It’s the motivation behind alternative fuel vehicles and future energy independence. So, the next time you stop to fill up, think about who profits from that $140 barrel of oil and what it’s done to our environment. Then, think about how much better things would be with a roof full of photovoltaic power and an electric vehicle in the garage.
Now, just don’t let it get to $5/gallon. That would be ridiculous.
July 29th, 2008 at 4:26 pm
So I have a response to this post, I have read it over a few times and there is something that has bugged me about the logic in one of the arguments and it just hit me what it was, so here it goes.
In the third paragraph you mention we have to “break our addiction to oil” and i would argue that since the 80’s (when we switched to a supply side economic model from a traditional model. BTW don’t even get me started on the Laffer Curve) we have slowly lost the power as consumers to make large scale change in our economy. We have to drive, and despite desire for higher fuel efficiency/electric or hybrids we are beholden to what the auto manufacturers make.
And above and beyond that we have to consider that oil goes into more than making gas for our cars. Plastic is a petrolium product, so say buh-bye to anything plastic (last time i checked we couldn’t make plastic out of solar or wind power) And in addition to other more common sense things like airplanes, and cargo ships running on gasoline/diesel/jet fuel, here is a list of other things that are derived/made from oil.
We will have to apply pressure to all those industries (which are most likely producing their goods in other countries) to change.
July 29th, 2008 at 5:19 pm
I see your point but would argue that supply side economics is a political policy/belief rather than an economic reality. For proof that consumer demand still causes change, we can look back in time as well as at our current situation. In the 1970’s, auto manufacturers responded to the oil crunch by making smaller, more fuel efficient vehicles. Today, cars are out selling trucks and SUVs, which hasn’t happened in a decade. The motivating factor behind these changes in consumer spending, which accounts for 2/3 of the U.S. economy, is price. The cost of gasoline is such that it’s increasing demand for more efficient/alternative fuel vehicles. Therefore, it is no surprise the Toyota is now the world’s top selling auto manufacturer.
That same pressure is being felt in other areas of transportation, where companies are looking at alternative fuels/strategies for airplanes and cargo ships. The increase in fuel costs affects all levels of transportation, as well as the price of other goods.
I was merely citing “gas” because it’s relevant to regular people. You are correct in that oil is the key, and the true determiner of price, as it is found in a multitude of products. I’m not sure there’s a way to completely stop using oil, but reducing demand from the transportation sector, which accounts for 2/3 of our oil consumption, is a pretty good place to start.
Now, as much of our utility power is still generated by coal, we’re trading one pollutant for another…but that’s another post.
Reference:
Cars outselling trucks
http://www.latimes.com/business/printedition/la-fi-gm4-2008jun04,0,7437925.story
Virgin Airlines Completes Flight Using Bio-fuel
http://news.cnet.com/8301-11128_3-9877583-54.html
Railroad Expansion Due to Fuel Costs
http://www.washingtonpost.com/wp-dyn/content/article/2008/04/20/AR2008042002407_pf.html
Cargo Ship with Kites
http://news.bbc.co.uk/2/hi/europe/7205217.stm
July 30th, 2008 at 12:06 pm
I thought this was an interesting analysis and in a format everyone can enjoy. YouTube!