Can anyone tell me why gas is so expensive?
#106
Re: Can anyone tell me why gas is so expensive?
I heard that the price is still rising because speculators are still buying it up in large quantities which is pushing the price up. This was on CNN a few weeks ago and they said there was no real reason for it to be above about $70 or $80 a barrel.
#107
Re: Can anyone tell me why gas is so expensive?
I feel that if the price of gas (and specifically diesel) goes much higher, there will be some serious challenges to our economy. I think some people underestimate the cost of transporting goods, and the impact rising fuel costs will have on items. While studying engineering, I had to take a few logistics courses, including one that gave a history of logistics, and a very large percentage (like over 80%) of our goods are shipped by truck (I can't remember the exact % right now). If truck drivers could no longer afford to drive, we would be shut down economically in a short period of time. No food at supermarkets, no mail or parcel deliveries, employers closing up shop. So, IMO, the price of gas going higher is not a good thing, and it will have a large impact on everyone - even those peeps who have the option of mass transport or can afford the pricey hybrids.
It's all well and good for people to say "I hope the price goes higher so we can get less people driving" but I don't think everyone completely understands the impact this would have on a nation that highly depends on transportation. It's a single point of failure for this nation, and until we can find an alternative, the East (or all oil producing nations) has us by the balls. In the meantime, I hope gas can stay affordable because if it can't, things will get ugly. I can easily see companies going under, unemployement rising, and the situation spirally downward due to the price of this commodity.
It's all well and good for people to say "I hope the price goes higher so we can get less people driving" but I don't think everyone completely understands the impact this would have on a nation that highly depends on transportation. It's a single point of failure for this nation, and until we can find an alternative, the East (or all oil producing nations) has us by the balls. In the meantime, I hope gas can stay affordable because if it can't, things will get ugly. I can easily see companies going under, unemployement rising, and the situation spirally downward due to the price of this commodity.
Last edited by Bluegrass Lass; Apr 25th 2008 at 1:43 pm.
#108
Re: Can anyone tell me why gas is so expensive?
Tax beer to high heavens, even though 30 pubs a week are going out of business.
Congestion charge coupled with increases in rail fare means business is down 15% in London.
I think the high gas prices should make us all try and work out a cost-effective, enviromentally sound alternative. If we just 'drive less' than these smarmy 'oh, it's good that gas prices are going up' people will join our ranks when there are no buses to take their kids to school, food is four times more expensive and they can't afford a plane ticket to visit the folks back home any more.
#109
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: Can anyone tell me why gas is so expensive?
It's all well and good for people to say "I hope the price goes higher so we can get less people driving" but I don't think everyone completely understands the impact this would have on a nation that highly depends on transportation. It's a single point of failure for this nation, and until we can find an alternative, the East (or all oil producing nations) has us by the balls. In the meantime, I hope gas can stay affordable because if it can't, things will get ugly. I can easily see companies going under, unemployement rising, and the situation spirally downward due to the price of this commodity.
#111
Bloody Yank
Joined: Oct 2005
Location: USA! USA!
Posts: 4,186
Re: Can anyone tell me why gas is so expensive?
There are only three tools for changing social behavior: prohibition, education and taxation.
I suppose that we could prohibit driving, or at least certain types of vehicles. But that would raise a hue and cry, and would never pass muster.
You could try to educate them. With an activity such as smoking, it is possible to get the public to reduce their smoking substantially because of the direct effects on their health. Keep sending them the message, and they'll eventually change for their sake.
Driving is more difficult to curb by asking "pretty please". In theory, people may like the environment (they put their two-liter Coke bottles in recycle bins, woo hoo), but they aren't willing to sacrifice the massive house in the suburbs or the Costco-Home Depot shuttling gas guzzler if they can afford it (or think that they can afford it.)
We would be better off today had they taxed it yesterday, because it would have put less pressure on the upward demand spike, and allowed the price premium to be invested into our infrastructure instead of the coffers of an oil company (which is more often than not the government of a dictatorship.)
If that extra $1-2/gallon had gone to providing public transit, education or whatever, I might be better off because I'd be getting something for it. Now, I'm just paying the money and getting absolutely nothing in return for it except a larger bill.
We're already seeing it, you don't have to wait. We appear to be returning to the stagflation of the seventies -- an economic recession (or at least slowdown), coupled with inflation.
#112
Re: Can anyone tell me why gas is so expensive?
The US has had decades to prepare for a time when gas prices were higher. But as the behest of the auto company lobby, it's manifestly failed to make much progress since the immediate aftermath of the '70's oil crisis. That's 30 years with little or nor progress. If the US embraced conservation, fuel efficiency and alternative fuels, the oil producers almost certainly wouldn't have it by the balls. There will certainly be pain until that happens, but in the long run the US -and the world - will be better off.
The only point I was trying to make is this: All nations need a viable alternative to oil because oil is a finite resource, controlled by the few. Without an alternative, world economies will halt, if not collapse, and we will see a global depression again. As I stated before, oil is a single point of failure for this nation (and probably others), and we need an alternative that can be implemented in a relatively short period of time before gas becomes too astronomically expensive, and food shortages are common occurances. As much as I want to pretend that that couldn't possibly happen here, I'm not that naive. There's not much that could topple a country faster than lack of food.
I just wish I had the invention that could solve the prob cuz I'd be a rich woman!
Last edited by Bluegrass Lass; Apr 25th 2008 at 3:54 pm.
#113
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: Can anyone tell me why gas is so expensive?
my wife is an attorney for metro nashville who just announced a bunch of budget cuts
they have stopped allowing her social worker a mileage allowance to go and visit clients which is basically unethical
she called me earlier and asked my opnion, since the social worker refuses to go, should she go (no mileage for her at all, before or after the budget cut)
I told her no way, its not her job and shes underpaid by 50% anyway.
130 mile round trip with no allowance for gas/wear and tear/depreciation?
**** off...
they have stopped allowing her social worker a mileage allowance to go and visit clients which is basically unethical
she called me earlier and asked my opnion, since the social worker refuses to go, should she go (no mileage for her at all, before or after the budget cut)
I told her no way, its not her job and shes underpaid by 50% anyway.
130 mile round trip with no allowance for gas/wear and tear/depreciation?
**** off...
#115
Re: Can anyone tell me why gas is so expensive?