Obscene Gasoline Prices

I’m sure we are all shocked these days by the “price at the pump,” and rightfully so. Gasoline companies are making record profits and there seems little the average person can do about it. With a daily demand of 21 million gallons in the U.S. and the production of only 17 million, you can be sure they’re going to command top dollar.

In our economy, gasoline is a necessity, and not a frill we can choose to do without if it gets too expensive. What is worse is that the ripple effect of the increased price affects every other facet of our economy. Truckers, Airlines and Public Transportation feel the immediate effect. We all face the indirect effect of increased costs. Food and other products are more expensive because of the higher expense of delivery. Manufacturing expenditures are increasing because of the cost of the energy to make their products.

It seems the only thing that will bring the prices back down, is to reduce the demand - or is it? Suppose we all picked one gasoline company and didn’t buy from them - Exxon or Mobile for example. Do you think they would have to lower their prices to regain their market share? If they started to lower their prices to recapture their customers, might not the rest of the industry follow suit.

Have you ever noticed that in every shopping mall, there is what is referred to as an anchor store. This is normally a large store that attracts a lot of customers and the other stores in the mall benefit from the “spill over” customers that go there. But what happens if that anchor store falls into disfavor with the buying public? Not only do they go “belly-up”, but most of the other stores in that mall will suffer as well. Could Exxon or Mobile be compared to that anchor store?

Let’s face it, we’re all in business to make money - but at what cost? Is there a point where people will simply rebel? I think so. We all know that oil is a short term player in the field of energy today because there is not an unending supply. Countries such as France and Japan get 90% of their energy from nuclear sources. Why are we lagging so far behind in the United States and have such a high dependence on oil for our energy supply?

We could be energy independent in a few short years. Wind farms offshore and onshore, nuclear generating facilities, and increased use of our coal reserves could go a long way to reduce our dependence on oil. Hybrid cars and the increased use of alternative fuels such as ethanol could drastically reduce our dependence.

Alaskan oil and more offshore drilling in the Gulf could provide short term relief. But unfortunately, a vocal minority of environmentalists, are blocking these attempts, seemingly at every turn. The wind farms offshore might pose a danger to a few sea birds. Alaskan oil could cause some animals to relocate their migration paths. Nuclear generating plants might change the spawning habits of a few fish due to their warm water discharge.

I wonder how these self appointed guardians of our environment will react when they can’t afford to drive to work. If they can’t feed their families because of the high prices caused by the greed of the big oil companies, might that temper their judgment? With the instability in the Middle East, it is sheer insanity to ignore the local resources we have available.

In the view of many, our energy dependence is the greatest problem we face today. Is nuclear development in Iran our major worry today? I don’t think so. Face it - they won’t have to go to war with us or any other country. With the profits made from the artificially high cost per barrel of oil, they can simply wait a few years and buy the property in any country they wish.

I put gas in our car last evening and it cost over $62. What will happen when that same tank of gas costs over $100? A person making minimum wage and living in an area without public transportation simply won’t be able to afford to drive to work. What is their alternative?

We know that the price of gas can’t be regulated by the government. That experiment during the Jimmy Carter years proved a disaster with artificially created shortages and long lines at the pump.

We, the silent majority have to solve this problem. We have to become more vocal and let our elected officials know what we want. With the mid-term elections looming on the horizon, you can bet that they will listen. Why not go to the web site of your State and get the email addresses of your elected Officials and let them know what you think.

I live in New Jersey and the web site address of my state is: http://www.state.nj.us/ - yours is the same except substitute your state initials where “nj” is. If we all let them know that the “silent majority” is no longer silent, perhaps those “Obscene Gas Prices” will become a thing of the past.

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Posted in Peak Oil News