"We will raise production when the market justifies it."-Ali Al-Naimi
Saudi Arabia's minister of petroleum and mineral resources, after the country rebuffed President Bush's request to immediately pump more oil to lower record prices.
Just wondering what is going to qualify as justification... I know gas prices always go up in the summer and during election season, and evidently it's got something to do with China becoming a more active player in the global market- but at what point does it end? How much will we pay for gas before we finally stop bitching and start changing our lifestyle? Screw the Saudis, and screw President Bush's plan to dig up Alaska, things have to change. It doesn't make sense to me to think short term. Sure we can increase our oil supply by drilling in the Arctic National Wildlife Refuge, besides, if we destroy the native caribou/muskoxen/wolverine/grizzly/walrus/polar bear/whale habitat now, we won't have to worry about global warming getting to them later! I feel like we might as well focus on decreasing demand as much as possible now and put alternative energy research on the fast track. I'm sure the issues are much more complicated than I know, but my wallet is empty and I want to better understand why.
* Image/Quote Source: Time Magazine
4 comments:
Drilling in the arctic wouldn't be so bad except for the chance of spill mishaps. If the plumbing were perfect and never leaked, it would actually provide a warm habitat for some of those creatures. Even arctic animals get cold. The only problem is that there is no such thing as a perfect pipeline, so it probably wouldn't be in those animals best interests, unless they like to go skinny dipping in unprocessed oil.
I've heard that there are some kits available that make cars water/gas hybrids that insanely change gas mileage. I'm not sure if it really works because I've only heard about it from some semi-reliable sources, but if there is such a thing as hydrogen-on-demand engine kits, it could revolutionize the transportation industry. It's too late to monopolize on filtered water... I'm sure many households have a Brita system of some sort in their kitchen by now. If I can find out more about this Holy Grail of automotive technology, I'll be sure to send it to you.
I payed 72 dollars to fill my gas tank.... with 40 cents off every gallon.
Is it time to declare open season on all large trucks and SUV's - they suck down disproportionately large amounts of gas and contribute to the coffers of Terrorists. I don't think it is an American concept but rather a British concept [Royalists thrive in both countries] that we should allow the few who can afford it to destroy the world for those who can't. Why is it that the royally rich are so quick to point out the "responsibility to society" credo when applied to the struggles of the poor but completely dismiss it in their own regard?
The market doesn't justify production increases. Year-over-year consumption is down, and when you have a commodity as elastic as gas, prices don't really matter. People still drive even though they don't have to or want to. Combine that with a weakening dollar (partially because of borrowing from China and lowering the Fed rates so drastically) and the mortgage crisis, and you can see why a gallon of gas is so expensive (people don't ever stop buying it) and why your dollar doesn't buy as much food as it used to.
But no one can really complain about gas much, because most people refuse to give up convenience. All of us COULD move closer to our workplace/school and walk or bike, but we don't because we're lazy. And the Middle East knows how to capitalize on it.
The real solution is nuclear power. Did you know that burning coal (our main source of electrical power) produces more radioactivity than nuclear power plants? Fact. We'll figure out the nuclear waste problem eventually, but for now, we can't afford to continue to live a pipe-dream of unlimited, cheap electricity and fuel.
Eventually, if we move more nuclear in our power grid, the cost of electricity will drop a bit, and we could move away from gas furnaces, stoves, water heaters, and cars toward devices that rely on electrical power, and we can do it without penalizing the environment.
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