There is a lot of news lately about the skyrocketing gas prices. I have nearly reached the point where I doubt everything I hear in the media about the cause of this phenomenon. The issue seems far more complex than a 30-second news clip can explain.
I’d like to blame it all on the environmentalists, but they haven’t really been successful in changing people’s minds about consumption. The government taxes gas heavily, but they’ve always done that. The oil companies are making less money now, even with the increased consumption, than they did when gas was cheap. Some have suggested that the limited refinery capacity has hindered the flow of gas. This seems like a more plausible scenario. Yet refinery capacity has increased, even though new refineries haven’t been built for a long time. Technology has improved, and not just in refineries. Cars ought to be getting better gas mileage now than they were in the 80s. Perhaps there are more cars, etc. now, and that’s driving up costs.
Ultimately, there seems to be no easy solution. I’m all in favor of decreasing consumption. But I’m not willing to forswear the automobile and the freedom it offers. I think most of America agrees with me. Alas, as long as we think that way, prices may remain higher than we want.
Case in point: We are traveling to Wyoming at the end of the week. I just had the AAA website calculate how much we can expect to spend on gas. $227 for the trip out. But we’re still going.
It’s the evil capitalists who run the oil companies. How dare they try to turn a profit.
I know it’s been a while since the national speed limit was done away with, but I wonder what effect (if any) that had on gas prices. It seems like that would result in at least slightly lower consumption. (I’m basing this on my observation of the surprisingly small amount of gas I used on my most recent trip home; the weather was so bad that I drove 45-55 mph for most of the second half of the trip. I did my part to decrease consumption on my way back up here today by driving the speed limit most of the time.)
At least $227 for gas is still cheaper than two plane tickets…
Interestingly, car experts say one of the best ways to improve fuel economy is to drive the speed limit. My hunch is that most cars with automatic transmissions burn more fuel than the optimum at highway speeds (which are often above the speed limit, but that’s a different issue). It may well be that a lower, consistent driving speed would burn less fuel.
The next question is whether the reduced consumption from a lower speed would actually help the market at all.