Gas Price Thoughts
Ok, so its that time of year again when people start posting bulletins about boycotting Exxon-Mobile, not buy gas on a certain day, and of course general bitching about the evil oil companies and their price gouging.
Well folks,
A. Even if everyone did the boycotts they wouldn’t work, gas is pretty fungible (gas is gas unless…) and the companies tend to buy from one another (that Shell gas you thought you bought could be from Citgo, gasp!) and you are not really asking people to reduce the overall demand. Just a one day boycott results in an increase in demand on the days before or after. A boycott of a single company means an increase in demand for the other companies resulting in higher prices at their stations resulting in the less dedicated moving back until prices equalize, plus in the interim, to meet the temporary increase in demand the other companies just buy gas from the empty stations.
B. The prices aren’t the result of anything the oil companies did (except try and produce the stuff) but rather a complex storm of events: exploding demand on the foreign (yes other people in other countries buy gas too), limited US refinery capacity, and uncertainty over the reliability of future supplies due to stuff happening in the middle east. Couple that with the insistence of US Citizens to purchase massive vehicles, drive 50 miles to go to work, compain about it, and all at the same time not invest in public transit or other alternative transportation/shipping options. You have your reasons, demand is just as important as supply in determining what prices are at.
We need better solutions then just bitching and demanding prices go down with out any serious investment in the long term sustainability of our energy sector, not short term price breaks. If we are concerned about windfall profits, lets tax those and use the money to supplement low to moderate income households transportation options, rather then simply reduce environmental protections and risk causing long term irreparable damage to our environment. There are tons of more sensible solutions to this problems then doing everything but look at the importances of creating viable future alternatives.
For people like me, gas prices will make a dent in my pocket book, but it forces me to make the trade off between less gin or walking to work.
Choices.
I will now duck in order to protect my face from any oncoming projectiles.