It finally happened. Wednesday, on my way to work – regular, unleaded gasoline priced at $4.04 a gallon at the Mobil on the corner of 253 and West Henrietta Road. This is particularly surprising considering the Kwik Fill just down the street was priced at a horrifically modest $3.83 a gallon. On my way back from work, the Mobil had chickened out and reduced its price below $4 a gallon but it had made its point – the price of gas is going up, and there is very little we can do about it.
“Supporting prices was the dollar, which weakened against the Euro and attracted more investment money to energy futures. A growing number of investors have come to view commodities such as oil as a hedge against inflation and a falling dollar. Also, a weaker greenback makes oil futures less expensive to investors dealing in other currencies. Many analysts see the dollar’s protracted decline as one of the chief reasons oil prices have doubled over the past year” – Associated Press, May 23, 2008.
“Growing demand for fuel is also helping boost oil prices. Demand for diesel has spiked in China, where power plants in some areas are running short of coal after last week’s earthquake. But even before the quake, Chinese diesel imports were rising sharply. China’s government has released nearly 170,000 barrels of fuel from its strategic petroleum reserve this week to ensure adequate supplies in earthquake areas.” – Associated Press, May 23, 2008.
Despite this gloomy analysis, there are ways we can help reduce the price of gasoline. For instance, I don’t know, not buying gasoline! Agreed, that it is difficult to do given the American preference of personal transportation and living in the suburbs/rural areas away from most places of employment – but here is a short list of things we can do to conserve:
· Drive slower. Accelerate slower. Keep your tires filled with air. Do all that stuff you always hear you should do, but never actually do.
· When you get the chance, buy a vehicle that is good on gas. Anyone, and I repeat anyone, who thinks they have any justification for buying a vehicle that currently gets less than 30 miles per gallon is undoubtedly inconsiderate and most likely insane. The only excuse one has for a non gas-efficient car is lack of money or for a particular job.
· Change your lifestyle by walking more or getting a job closer to home. Treat driving as a privilege, not a necessity.
· Keep track of your gas expenses. This will allow you to see how much of your money you are throwing away on gasoline that could be used on other forms of entertainment – like beer.
· Pull ideas out of Drew’s last blog. However, try not to let yourself die.
Americans are stubborn. We do not like changing our lifestyle. We really do not like being told by others to change our lifestyle. But the bottom line is this – we already are.
“Analysts also say a significant reduction in demand for gasoline could bring prices down. Energy Department data shows gasoline demand has fallen for much of the year, and new Federal Highway Administration data shows the number of miles Americans traveled fell 4.3 percent in March compared to the previous year — the first year-over-year drop in March travel since 1979.”- Associated Press, May 23, 2008
There is very little we can do to halt China’s growing demand for crude oil. Also, there is very little we can do to stop the decline of the American dollar’s value. But what we can do is use less gasoline. We should not have to forget about driving when we need or want to. I am still driving to Burgettstown next weekend for a Dave Matthews Band concert (look forward to a concert review next week!). I am asking you to find ways to reduce your gasoline consumption on a macro scale so that gasoline prices can sink to a reasonable level. Oh, and so I can drive to work for less than $4 a gallon.
Joe Mignano
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