A silly place filled with caffeine induced ramblings of this person named KarmaGirl....or something.
inspired by a WinCustomize.com thread
Published on May 21, 2004 By KarmaGirl In Current Events
On WinCustomize.com, there is a thread "thanking" the President for our gas prices. A lot of non-US people were commenting on how the US actually has cheap gas compared to most everywhere else.  (Which is mainly because we produce over 50% of our own gas and can refine the rest ourselves).  Gas prices seem absolutely crazy, but here is my response to their post: 

The gas problem is going to be a long term problem.

First, you can not blame Bush or the US government for gas prices.  Crude oil prices are set by OPEC.  They will raise prices just because they *think* a shortage may happen.  Unless the US wants to go to war with the world, we aren't about to over throw OPECs decisions.

Second, we keep having a higher demand.  More cars.  More driving.  Less fuel efficiency.  The EPA wants to make sure we have very clean air.  They make tighter and tighter restrictions on emissions every year on both cars and fuel refinery.  Funny thing is- the higher the emissions standards, the worse the gas mileage.  You need more fuel.

Third, refineries keep closing because they can meet emission standards.  The EPA has gone so insane that it is almost impossible to build a new refinery so companies just don't.  We have lost about 30% of our refineries in less than 20 year.  However, our demand keeps growing but our refineries can't keep up.  Europe's gas is quite expensive because of this.  They have to outsource almost all of their refining which costs a lot since all of them are already running at 99%.

Fourth, the people don't want more fuel efficient vehicles.  How many people do you know that drive a diesel car?  A Jetta TDI will get 50mpg (that is real life trial- I had one).  Diesel fuel is $1.79 per gallon here versus $2.09.  Doesn't take a math wiz to figure that one out.  How many hybrid Honda civics do you see on the road?  They are available, but they don't have the horsepower of a full gas engine.  They don't sell well.  These factors tell the car industry that we don't want alternative fuel so they aren't spending the money on research.

But, here is a bit of math for you to see that gas prices aren't as bad as people really think.  Yes, it costs more per year, but I think until it gets to $3.00 a gallon people can deal with it if they use a little common sense and quit over reacting.

Here is the scenario (which is real life because it's my car).  A Monte Carlo SS gets 28 miles per gallon.  It is driven 29,000 miles per year  (I will round that to 1035 gallons per year because I don't want to deal with decimals).  Here is what it costs per year to drive at different amounts (I will start with a gas price that we haven't had in years and end with one that could happen):
$1.35/gallon: $1397.25
$1.50/gallon: $1552.50
$1.79/gallon: $1852.65
$2.00/gallon: $2070.00
$2.10/gallon: $2173.50
$2.25/gallon: $2328.75
$2.50/gallon: $2587.50
$3.00/gallon: $3105.00

So, the difference in gas from a few years ago ($1.35) and now ($2.10) is $776.25 per year more.  Since the national average mileage per year is less than half of what I drive, that means that the average consumer is seeing an increase of less than $388 per year (at current prices).  In comparison, if you were to buy a fast food lunch 3 times a week at $3 more than it would cost you to pack a lunch, that would cost you $468.  Heck, even a $1.50 coffee 5 days a week costs $390.  Smoke?  The yearly average for that is $2,000 per year.

So, pack your lunch, make your own coffee, and quit smoking.  Buy a fuel efficient vehicle the next time you need a car, and don't sweat the gas prices.....yet.


Comments (Page 1)
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on May 21, 2004
First of all, no mention of biking! WHAT GIVES?!?!?!?

Second, tons of people are buying the toyota prius....no mention of this vehicle either.

Third, BIKE BIKE BIKE BIKE BIKE!

Love the Suspeckt riding two wheels through your traffic jam.
on May 21, 2004
I like the way you are thinking. The gas prices definitly make me think of better ways to conserve gas, like walking when I can, take a bus, or maybe bike!
on May 21, 2004

 Suspeckted......I live in the country.  The closest town is 5 miles away.  The closest real town is 15 miles away.  Work is 55 miles away.  Not everyone lives/works in cities where they can walk or bike anywhere.  Also, in Michigan, there aren't a lot of months that you *can* bike.  The other wonder is that there is no way to take a bus from where I live (even when I get to the closest big city) to where I work.  Public transportation doesn't really exist.

tons of people are buying the toyota prius....

If you consider about 20,000 per year in the US a "ton".  (The Chevy Cavalier sells about 100,000 per year in comparison)

 

on May 21, 2004
Karma: I love it when you have blogs containing math. Maybe it's just envy but you rock, sister!

As far as gas prices go, I agree with what you are saying. With a little conservation, this needn't be the crisis it's made out to be. Rather, more people should take a good hard look at how they are currently using fuel and for what purposes. Cutting back the McD's, smokes and caffeine isn't going to be fun, but neither is trying to spend money when you don't have it!
on May 21, 2004
Careful Karma .... people get upset when you show them that a sacred cow like the importance of gas prices really is not all the important after all. loved the article
on May 21, 2004
Another reason US gas prices are lower is because our gas taxes are lower.
on May 21, 2004
I agree with almost all of this article except one point:

"The gas problem is going to be a long term problem."

Well, I guess that depends on your definition of long-term. According the BBC, at our current rate the earth's readily available crude oil suppy will run out in the next 50 years, thus eliminating the problem of gas prices altogether, because there will be none to be had. THAT'S why we need to start thinking about alternative means of energy producing, not because of the environment. I'm all for the environment, but like I said, in the next 50 years Mother Earth will take care of that problem herself.

Am I the only one who sees this? Does this make me a "bleeding heart liberal"? C'mon, conservatives. I know you're smart...think of how much money developing a new fuel will make you!
on May 21, 2004
If you consider about 20,000 per year in the US a "ton". (The Chevy Cavalier sells about 100,000 per year in comparison)



Not really a fair comparison. The Prius has not been on the market for very long...yet there sale number continue to increase and production is following as well.
So when you said.
Fourth, the people don't want more fuel efficient vehicles.
True, ff you consider 20,000 people (likely 36,000 people this next year) purchasing this vehicle as a reflection that "the people don't want" them.

on May 21, 2004
offering a tax break that encourages businesses to acquire and operate the highest priced suvs (typically the heaviest and least fuel efficient of that whole class of ostentatious gas-guzzlers) might prompt one to wonder about the administrations commitment to energy conservation and/or the environment.
on May 22, 2004

Well, I guess that depends on your definition of long-term. According the BBC, at our current rate the earth's readily available crude oil suppy will run out in the next 50 years, thus eliminating the problem of gas prices altogether, because there will be none to be had. THAT'S why we need to start thinking about alternative means of energy producing, not because of the environment. I'm all for the environment, but like I said, in the next 50 years Mother Earth will take care of that problem herself.

 

Evironmentalists have made this prrediction before, except then it was that we would be nearly out in *2000*.

on May 22, 2004
Something that your not taking into account is that Bisnesses are now starting to charge a "Gas Sir Charge" so not only is the price of gas increasing but other things such a FedEx shipping or any company that feels their profit is being effected by the gas price.
on May 22, 2004
changeling1971...

you got that right. strangely enough those increases are rarely completely unapplied when prices revert to their former levels.
on May 22, 2004

Suspeckted, the Prius is expected to sell 25,000 this year which beats last years sales.

You don't think I made a fair comparison.  Here's a better one- diesel cars have been around for your entire lifetime.  Hybrids have been around for over 4 years.  Do people buy more diesels and hybrids than gas?  No.  Does it even come close?  No.  Is the percentage of diesels and hybrids verus gas vehicles growing?  No.

What is the current average size car and fuel mileage?  It's not a fuel efficient compact car.  It's a full size car to SUV (SUV's, trucks, and Minivans own the roads anymore).  What is the average gas mileage?  I wasn't able to get enough data, but from what I have found, it's less than 25mpg, which is HALF what a diesel Jetta will get.

on May 22, 2004

I think that if higher gas prices result in smaller cars on the road, I would be happy.

As a sedan driver, it really bugs me when my line of sight (when turning) is blocked by a truck, van, or SUV.

I wouldn't mind if there were only occasional larger vehicles, but it has gotten to the point where everyone drives one.

Bicycling everywhere... I don't get bike nuts.  I sure as hell don't want to bike anywhere here (MN) in February.  I do see the appeal of passenger trains.  I like those!

on May 22, 2004

I wouldn't mind if there were only occasional larger vehicles, but it has gotten to the point where everyone drives one.


Yes, I had noticed that as well.  I see SUV's all over the place, and 'bigger, better' pickups with too.


I'd love to bike everywhere, but I'd get frostbite.

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