Friday, September 02, 2005

Gas Prices

Well, gas went over $3.00 a gallon in my area today. Now we think that is a lot and many people are complaining about it. What are people doing to discourage the price going up? Nothing. As long as the demand is up and the supply is where it is at, the price is going up. There are many reasons why the supply is where it is right now, from OPEC keeping things at the current level to decreased production in other places such as the Gulf of Mexico. Two years ago the prices were going over $2 a gallon. At the same time, production had been stopped in Venezuala which is another place we get our petroleum. They were in the middle of political upheaval and shut down their wells and refineries in protest against their president. Our prices went up. Right now, the production in the gulf has dropped due to the recent hurricane. When those hurricanes go through and are the strong ones, the oil rigs are evacuated, then you get the hurricane that just went through were not only rigs were closed down but also refineries. It may be a while before many of these get up and running again.

Another thing we can do is decrease our demand. I went to take cans to the redemption center today and there were two or three cars idling. Turn off that engine when you are waiting. Open the windows or get out of the car and wait in the shade if it gets warm in side. It is only 75 degrees out with a light breeze. Consolidate trips. We live 15 miles out of town and gone are the days we run to town for one or two things. Ours is a rural school and I don't see the busses running with more kids. Not all the kids have to drive to school. The kids can consolidate their trips to and from the school. If they have a half an hour between practices and classes, they can stay around school instead of driving home or to a friend's for that time.

Did you know that in 1981 the price of gas was $1.48 per gallon and when you convert that to the monetary rate of 2005, that translates to $3.11 per gallon. This price is an all time high and we are just now reaching that all time high.

I hear "what is the government going to do?" My question is "What are YOU going to do?" The more we expect government to do, the more we will pay in taxes. Then we complain of the taxes. We each need to take responsibility and make changes. It is these changes that will affect the demand. Unfortunately, I don't see that happening.

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