Thursday, June 12, 2008

Earl, oil, Texas tea, black gold, whatever

I don't have a lot of experience in dealing with gas prices and the like, as I don't drive. However, I got a first-hand look at paying for gas on my recent trip to Colorado. My sister and I drove. We ended up filling the tank six times, with a total cost of around $240. This has to be hard for people who do this every couple of days...especially with larger vehicles.

There has been a lot of political rhetoric about gasoline, likely because there is a lot to be potentially gained by doing so. This is yet another example of how far apart we are on things here. On one side, you have the people who blame oil companies. These people paint oil companies as evil profiteers who are getting rich off the hard-working American who struggles to pay their bills. On the other side, you have the people who blame the dirty hippie environmentalists for not letting us drill for oil because global warming is killing all the polar bears. I think that's about where the two sides stand.

It seems to me that the problem is a supply and demand problem. Demand is rising quickly, and supplies are not keeping up. There are many reasons for this, but the net effect is rising prices (yeah, I took intro micro and macro economics). One side demands a lowering of demand, the other a rise in supplies. I tend to agree that we ought to be working to stabilize supply lines, and not shutting the door on drilling. Yeah I know, the environment. But, the reality is until something better comes along, we need to have oil production. I can see the point about lowering demand, but without coercion, it can only be lowered so much. And, I am against coercing people onto buses and trains. I like buses and trains, but that's my choice.

As for me, the high gas prices had scared me off buying a car for now. Here's the thing, though...$40 to fill up a gas tank is pricey, but it's not that bad (if I get a car, it will hopefully not cost much more that). Of course, if prices continue to rise, all bets are off for me.

I will likely talk about this more, especially as I look more into the election this year.

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