Wakeup Breathing

Some people are getting together to try to force oil companies to lower prices by purchasing gas from only independent gas stations.
Unfortunately buying gas from one company and opposed to another will make no difference. The cost of gas is a multi-faceted issue. One part is supply and another part is economics and the value of the dollar.

First supply…About 70% of the oil we consume for all uses including gas is imported from various countries mainly the OPEC ones. We even import about 13% of our gasoline now. The resaon is because we as a society have chosen to not develope our own sources of oil. We have allowed overblown fears of various kinds to stop oil development in Alaska and offshore along our own coasts. At the same time other countries will be drilling 30+ miles off the coast of Florida to get oil we can’t go after because of environmental fears. Now I’m not saying we should abandon environmental controls that would be stupid. But we should also not allow unfounded environmental fears stop us from doing activities that will help develope new resources.

So because environmentalists have strangled our oil industry from exploration and our government has no leadership the oil companies must purchase oil from very unsympathic countries. The OPEC countries have no incentive to increase production because they have a captive buyer. We need it and they have it. Why would they give up the golden goose…which is us and other oil dependant countries. Now we can all sit around in forums and do a collective hand wringing and make symbolic statements about where to buy or not buy gas. For the most part is will be like picking the fly poop out of the pepper…..it won’t make any difference. Also there is only so much demand that can be reduced. Gas is only a part, diesel, propane, kerosene, heating oil are all from that same barrel of oil. So while we can maybe reduce our individual use of gas by a few gallons it is limited.Our entire economy is dependant on oil in some form or another. Either in the manufactruing process or creation of many items we use. Also in the distribution of those items. How many things do you buy are shipped via trucks to the stores you patronize?

Another factor is the falling dollar. Since oil contracts are in dollars as the dollar falls it takes more dollars to buy the same amount of oil. And since there is a finite amount of gas in a barrel of oil the higher the price of a barrel the higher a gallon of gas. The recent mortgage industry meltdown has been a huge factor in the dollars free fall. Mainly because other countries have invested here and are bailing out because of that and other mis-steps by our government. with the Feds prining money like there is no tomorrow it is making things worse. The more there is of something the less it’s value….think dollar. One thing about the oil companies. Some here complain about the profits…..remember an oil company is not some fat cat somking a cigar rolling in the money. Oil companies are us…they are in our 401k. They are Grandma’s retirement fund and in a unions investment vehicle. So when you beat on the oil companies you are beating on us.

The gas problem is not going to be fixed with you or me buying 5 less gallons a week because we rode a bike to the store. It is going to take some leadership in Washington in conjunction with the energy industries. And that will happen only when we elect leaders instead of figure heads. Whoever is elected this Novemember will provide no more leadership on energy than the last 4 presidents.

We need a comprehensive energy plan. With some of the following activities:

Develope our own sources of oil, in Alaska and offshore. To begin to rid oueselves of OPEC.

Higher subsidies either through tax breaks or purchasing assistance to increase home solar use.

Develope a standard nuclear electrical generation plant and use it where there is not hydro-electric capabilities. (France generates 70% of their electricy through nuclear plants) We are at least as smart as they are and can do this safely.

Use more wind farms where they can be used even if a bird or two run into the blades.

Continue developing hybrid and fuel cell cars because we are never going to go back to horse and carriage or ride bikes to work.

I know some of these are controversial, but we are not going to have any success unless we move away for gas and natural gas as a prime enery source and more to alternatives……In my humble opinion

This entry was posted on Friday, March 21st, 2008 at 12:43 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.