Tuesday, May 20, 2008

In 2000 during George Bush’s first year in office the price of a barrel of oil cost 27.18 cents. Earlier today a barrel of oil reached 130 dollars. That is an increase of almost five fold…so…what’s going on and when is this going to stop? Well, from where I sit it will only stop or slow down when… the value of the dollars stops dropping… the oil investor/speculators decide the price of oil can’t go any higher and they opt out and look for some other investment industry to ruin. Apparently ruining the housing industry didn’t satisfy their unquenchable thirst to make a quick buck …or…we become serious about creating new alternative sources of energy. Personally, I am not optimistic about the price of gas coming down soon anytime, if ever, and I can imagine in the near future that gas may reach six or seven dollars a gallon. By near future, I mean, a year or two…Advocates of the free market believe that market forces will eventually lead to alternative sources of energy because there is too much money to be made. That may be true…but…the oil companies and certain sectors of the auto industry also have a stake in the use of oil and high gas prices. So, when will the market forces eventually lead us to the promise land of alternative energy sources. That is the million dollar question, now isn’t it? Only time will tell…In the meantime, we all need to hold on tight, conserve as much as we can and hope that our government officials from the top down realize that our government has a role and stake in doing what they can to move us as quickly as possible to alternative sources of energy…before…we are not only paying six or seven dollars for gas, but are also paying four dollars for a loaf of bread and five dollars for a gallon of milk.

2 comments:

Dave said...

Here in MI, $3.80 for a gallon of gas would cause a traffic jam. We'd been holding right at $3.99 for awhile but it cooled off by a few cents late last week. I don't know what makes Grand Rapids so pricey, but I was in Ohio yesterday on a business trip and was pleased to fill up for $3.74 per gal! Of course, that was on the company account, but still... it's not like we live in downtown Manhattan or something... I'm glad that my work is only 8 miles away. I'm measuring my drives more carefully and deliberately than ever before and will consider taking the bus to work some days this summer if I don't have any need to drive away on my lunch hour or anything like that. All in all, that's not such a bad development, I suppose.

Bilbo said...

My job is 80 miles round trip a day...Ouch!...I car pool, but, I still put 20 thousand miles on my car a year. Gas jumped 15 cents yesterday...This is getting crazy.If the oil companies don't get a handle on this pretty soon the feds are going to step in. Don't they understand that?....