Ellington

There we were at night, driving around to find the cheapest gas ($2.15). I had to fill up the van that I sometimes drive for work. (Hello, I have a day job at a plant nursery; you can't think this column pays all my bills.) Anyway, I got out, ran the gauntlet of spare-changers (I live in a rough 'hood), and delivered my 10-dollar bill to the lady behind a two-foot thick wall of Plexiglas. About two minutes later, I tapped on the gas gauge, which had barely moved. Then I realized that I'm becoming my grandmother, who always stuck a one-dollar bill in our birthday cards. Ten bucks ain't what it used to be.

More than a year ago, I wrote a column about what to do when gas prices soar, because they were high, like a national average of $1.87/gallon. I suggested making sure the air pressure in your tires was correct—if it's too low, you can lose 2 miles per gallon in efficiency. I suggested locating the cheapest stations by using GasBuddy.com, a Web site devoted to finding cheap stations in your area. I suggested not driving so much, for God's sake, or at least combining trips. But now, things seem totally screwed.

The deal is, crude oil prices have gotten past the $40 a barrel mark, the highest in 14 years, which sends gas prices skyrocketing. In mid-May, the Senate held a meeting to discuss why oil prices were so high. Three factors figured prominently. One is massive growth, especially in places like China. Remember when industrialists fantasized about the buying power of a country of 1 billion people? Well, there's a boom going on in China, and they are using cars more than ever, and these cars need gas! Because of China and other booming economies, the International Energy Agency forecast that the world would consume 2 million more barrels a day this year than in 2003 (for a total of 80.6 million barrels a day). A day.

Another biggie is the fact that all the oil companies have been consolidated, and so competition—a tenet of free-market capitalism, remember?—has lessened. Add increased demand, and you've got (dare I say it?) a monopoly where the oil companies can raise prices without fear of competition.

Finally, and most importantly, there just isn't any more surplus crude oil. According to The New York Times, most oil-producing countries are already producing all that they can. Saudi Arabia has agreed to boost their production, but their oil is too high in sulfur content for the main consuming nations. Though oil company representatives tried to convince Congress they've suffered because of environmental regulations, they weren't able to present solid evidence or explain their huge profits this quarter.

But paying even $2 or $3 per gallon isn't going to alter people's driving habits. Like the ballooning price of movie tickets, most folks will just shake their heads and submit.

On the way home, Bill and I began playing a fun game called "how much will you pay?" What price per gallon would actually alter people's behavior—force them to carpool, buy a fuel-efficient car, or altogether stop driving completely? Bill thought $5 per gallon. If most tanks hold about 15 gallons of gas, at 5 bucks per, you'd spend $75 per week (assuming a tank per week) just on gas. Sad to say, but I think most Americans would be willing to pay even that. Because to not pay, they would have to change their lives and patterns. We are a money-loving nation, and we often calculate time based on an hourly wage. If it takes someone an extra hour to take public transportation, that's five hours a week, and most people would say their time is worth more than $20/hour.

To be honest, I welcome this coming shortage. We will have to come up with ways to conserve resources. I recommend implementing major lifestyle changes. If you can, move into urban areas. Live close to work, the grocery store and your entertainment meccas. If you can't do that, move closer to a bus line, or start a carpool. Abundance in the oil universe has dried up—it's time to treat it like the precious commodity that it is.

What would change your habits?

E-mail Novella at [e-mail missing].

Previous Comments

ID

84292

Comment

"What would change your habits?" The gas prices are already changing my habits. As well, they have increased the need to work closer to home and utilize alternative methods of transporation (ie, my two feet, a bicycle, commuting). Novella feels that $2 or $3 gas won't change people's driving habits; I disagree. I think more people will begin commuting or erradicating useless driving. As well, I think many people will begin using other alternatives, including fuel. The current gas prices are already changing our way of thinking and acting. Certainly, if they increase significantly, more people will take note and modify their behavior. Hell, if anything, I hope it reduces the amount of SUVs on the road! I, for one, stopped viewing films in theaters when the ticket topped $6 and the popcorn cost more than the movie... Not to mention the popularity of cell phones these days makes theatre visits more of a headache than a pleasure.

Author

kaust

Date

2004-06-08T16:53:34-06:00

ID

84293

Comment

I know that gas prices seem high. But I heard somewhere (sorry I can't remember the source) that the prices today are still lower than they were in the 1970s in constant dollars, i.e. taking inflation into account.

Author

Justin

Date

2004-06-08T17:56:18-06:00

ID

84294

Comment

I also remember gas prices were extremely high when I was younger... Specifically the late 70s and early 80s. I'm now curious to see if there are an comparisons on the web and will have to research. Still, now that I'm driving and not being driven, I am directly influenced by the pricing. As well, due to relocation of my workplace, my commute to work doubled. So, personally, I foresee many changes in my near future as a result of gas price increases and a slumping economy for middle-class individuals. Even with 30+mpg, my wallet has felt the burn of gas prices. Anyone need a jack-of-all trades that has a business in the Fondren area? ;-)

Author

kaust

Date

2004-06-08T18:02:41-06:00