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.