Thread: gas prices.
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Old 05-25-2008, 12:56 PM   #29
The_Stache
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Ok just to start this is the last time im going to post in a gas related thread (I hope). So forgive me if this is long winded.

I'll start with the misconceptions as others have.

#1 - the world is running out of crude oil. False, this has been proven over and over and over, and yes OVER. Canada alone has enough crude oil to support the USA for over 100 years, its just EXPENSIVE to get to so therefore prohibitive until cheaper methods of attainment (middle ease/ brazil/ ect..) are exhausted.

#1.b - there is no more easily attainable crude oil. FALSE, there is almost as much oil as the middle east has, readily available to the USA, but the environmentalists and the government contingent has refused to drill it for 2 major reasons. The enviro nuts dont want to screw up the ecosystems AND the govenment is using that as a hedge fund against middle east collapse. Basically lets use thier resources first then ours(yes this is and has been the us's policy since the 70's rationing).

#2 - supply cannot keep up with demand. CORRECT, BUT the reason is not crude, its the refining process that produces gasoline. The government (specifically californias great conservative and influential attitude) has made building new refineries sooooo stringent and expensive that gas companies basically refuse to build new ones and just update old refineries to match standards. If 20 new refineries where buildt tommorrow gas prices would probably drop by almost half, but since oil companies are about profits and not consumer relations (becuase demand in america is seen as not want based but NEED based) they refuse to spend the billions of dollars of profits to build new refineries.

#3 - The middle east has it out for us americans and thats why they pay .45/gal and we pay 4+/gal. False, the middle east is just providing a resource. The demand at thier end is just rising and they are pricing accoringly, as already stated, US demand is not increasing, THE WORLDS demand is. China and the rest of asia's demand is on the rise. Thats quite a chunk of the worlds population and the middle east is just responding by rising prices becuase they have more customers demanding more from them. Also a resource is always cheapest at its source, check out the markup on diamonds or silca or grain. The closer you get to its source the less markup there is. If you dont beleive me go read about the crusades and the real reason behind them (salt).

Finally the conclusions.

As Americans we are spoiled, plain and simple. We have used our independance on oil (yes we are independant) to force lower prices from the middle east and other sources for the last 30 years, and becuase we where the one and only major country with a backstock of oil, and the oil producers know it. But now we are just another customer in a crowded shop and we pay what the others pay due to increased worldly demand AND ITS STILL CHEAPER THAN DIGGING INTO OUR RESERVES.

As consumers we always blame the retailers, but in reality we need to blame ourselves. We have come to expect the (percieved) needed items in life at the cheapest possible price (thanks walmart), yet fail to recognize economics when it slaps us in the face. The best way to combat this is to alter our lifestyle. Now that could mean anything for anyone, there are always solutions(carpooling, alternative fuels, telecommute, move closer to work, ect..). IF you enjoy driving or using gas soooo much that you absolutly have to drive and refuse to change your habits, you have to accept the price of gas, you have to pay to play. Consumers in this situation (namely me) have NO right to bitch about pricing, becuase you accept that price for the enjoyment that is NOT a requirement for daily living.

As a collective whole, consumers are still buying gas, that means the price has not reached a point where the majority of the population is drastically changing thier habits. Until that point occurs the price will continue to increase.

My final thoughts. If you read nothing else read the following.

GAS IS NOT A REQUIREMENT FOR LIVING, IT'S A LUXURY. UNTIL YOU START TREATING IT AS SUCH YOU WILL CONTINUE TO BE UPSET OVER SOMETHING YOU HAVE CONTROL OVER, BUT REFUSE TO EXERCISE THAT CONTROL.
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