Thank Uncle Sam for high gas prices

I just filled up the Stang yesterday, $2.45 a gallon Can you believe it? And it was a Mobil Station to boot.

 

<div class='quotetop'>QUOTE(Stev0 @ Aug 13 2007, 08:28 AM) [snapback]494693[/snapback]</div>

Subsidies? Or, more likely, an absence of taxes.

 

The problem in this country is the lack of investment in mass transit and the low taxes on gasoline (to encourage use of mass transit). Move closer to work and/or use mass transit (yes, that includes the bus). I don't have a lot of sympathy for the average commuter complaining about gas prices when 1. they choose to live far from work and 2. for some of you who do live near mass transit (if you don't, see point 1) - choose to drive instead of ride to work. Low gas prices aren't American given rights. I don't like how ExxonMobile and Conoco/Phillips make obscene profits, but that is the fault of our government for giving them mineral rights to so much land and sea for drilling without charging them enough royalties for it (we practically give them the oil to drill, refine, and sell), and for allowing them to merge into the huge businesses they are. Get rid of subsidies, charge more for royalties, and use that money for high speed rail, lightrail, and urban trolleys; gas prices will go up (the are going up anyways), but in the longterm, we will be using less oil, polluting less, and increasing our quality of life. Also, raise the gas tax to repair highways and bridges. If we don't, then we will charge our way toward dwindling oil supplies (i.e. worst gas price spikes), and global warming.

 

<div class='quotetop'>QUOTE(dareniott @ Aug 13 2007, 08:12 AM) [snapback]494635[/snapback]</div>

Are you saying that you have no control of your life? You didn't choose the house you purchased? You didn't choose the job you currently work at? You didn't choose your current mode of transportation?

I would propose that you could if you wanted to, choose to live within walking distance of your job (0-5 miles). If not walking distance, certainly you could live within biking distance (0-15 miles). You have chosen a Prius which is an excellent choice as a family car but for commuting might I suggest a Bajaj Chetak scooter (150cc 4_stroke) that gets 90 to 110 mpg. Add a sidecar frame and you're good for winter riding. You may laugh and say that such transportation options are not practical, but billions of people around the world get by with similar or less. We as Americans have just become spoiled into thinking that a house in the suburbs is a requirement of life.

You may say that you can't afford a house close to your job. That may be, you may not be able to afford the same house closer to your job. You may have to downsize to a smaller house. You may have to downsize to a townhouse, apartment, or loft. My point is that everything in life is about choices and trade-offs.

I find it laughable at best when suburbanites complain about price of gasoline in the US when as it has been pointed out that we have the lowest prices in the developed world. I specifically find it laughable for people that specifically chose to drive long distances every day so that they could have a large house with a big yard then turn around and complain that gasoline cost too much. Of course it's not our fault that gas cost so much (we only use 25% of the world oil) it must be someone else's fault.

 

There is a much bigger problem than someone not walking to work. Oil is used to generate virtually all plastics, agriculture needs, and we have established and constructed our cities to require trucking (vs. rail) virtually everything everywhere. Gas prices are extremely low both compared to the rest of the world and the cost of living 40 years ago. Check for yourselves.

For those of us who pay attention to oil reserves, there is an impending supply and demand mismatch in the making. Anyone can guess when this will occur. The latest reports are about 2011 to 2020. Past this point gas prices start to climb fast. Really, really fast since transportation of food is required to LIVE. The present price fluctuations are just that, fluctuations. Save your fingerpointing of the government and oil companies. It's good therapy, but this is the way US economics has always worked in times of plenty. After the peak oil supply threshold is crossed it will be a completely different situation with the government and oil companies accused of not rationing a critical resource. How come few are bringing that up?

 

<div class='quotetop'>QUOTE(kidtwist @ Aug 13 2007, 11:18 AM) [snapback]494686[/snapback]</div>

Gas (in the USA) is both cheap and plentiful. The real question is when will demand exceed supply which will likely result in periodic shortages (gas lines). Gas prices will certainly then rise dramatically since the USA will be still able to afford >>$100 a barrel oil (basic supply and demand economics at work), while the poorer regions in the rest of the world begin to suffer horribly since it will be difficult to feed their populations without oil. I suspect that US citizens will only become alarmed if gas lines become common place. It's one thing to grumble about paying a few more percent of our income for gas, but imagine the uproar and panic if gas stations start running out of gas.

http://www.theoildrum.com/node/2716

 

<div class='quotetop'>QUOTE(joe1347 @ Aug 13 2007, 08:58 PM) [snapback]495202[/snapback]</div>

Well, absent price controls or non-market allocation schemes, I doubt that you will see supply dislocations in the U.S. That was tried already and is fairly well proven to not work. There are some interesting ideas out there about how to encourage consumers to consume less gasoline/carbon and I think that the most interesting (to me at least) is the Sky Trust concept (see http://www.msnbc.msn.com/id/19228483/site/newsweek/ ). It is not often that the individual consumer can be paid for doing things to reduce their carbon footprint. I would support the Sky Trust concept.

 

<div class='quotetop'>QUOTE(joe1347 @ Aug 13 2007, 11:58 PM) [snapback]495202[/snapback]</div>

Don't miss the point. Prices are nothing. It's the effect on everything else ... cost to maintain the 3,500 mile long supply line for your Cezar Salid ... the 10,000 supply line to keep your Wall mart and Costco stocked (at an affordable cost) etc.

 

<div class='quotetop'>QUOTE(hill @ Aug 14 2007, 09:40 AM) [snapback]495393[/snapback]</div>

Well, then there is an argument that the disruptions from offshoring would be reversed as energy costs become more rationalized.... The only thing that is keeping the 10,000 mile supply chain in operation is cheap energy.... Maybe Wal-Mart will have to change their business model????