So, everybody up for yet-another-blog-entry on the high prices of gas?
Before I start, I think that there are several basic truths that must be layed out and agreed:
1. The petroleum energy market is not a actually a market-based system based on free enterprise. Whether it's the Saudis or Iran or the U.K. or even the United States, many governments have a hand in trying to influence energy prices.
2. Demand is relatively inelastic - that's an economics term meaning that as prices rise, demand does not react as flexibly as prices, and more profits can be gained simply by raising prices without fear of losing sales due to reduced demand.
3. That said, the U.S. has, historically, been fairly effective at reducing demand, when we really really want to.
Now first of all, let's face it... Jimmy Carter was the last president to really take a crack at energy independance, and despite his great intelligence and willingness to break the mold, the best he could come up with was putting some solar panels on the White House roof and advising us all to turn down our thermostats. And the Democrats pine over the days when a "real" alternative-energy president the likes of Carter presided. So let's face it, there has really been no real leadership in this area, ever. Ralph Nader could probably change that, but unfortunately he's simply too nutty to get elected president. Apparently someone didn't clue him in that checking the "Nutty as your grandmother's fruitcake" box on the application to run for president would have a negative impact.
So lacking any real substantive leadership now and in the near future (and mind you, I'm not excluding George Bush - like his policies or not, at least he's come up with something. But he didn't care until this year, so he still needs to prove himself to me) what we're faced with is:
- We rely very heavily on petroleum. That's not likely to change soon.
- Even if it does, the Chinese rely even more on petroleum, and they can easily make up for all the demand that we could possibly reduce
- Petroleum is going away. In the 10,000,000 year relative sense, it's going away really soon.
What are our options? Should we sell our SUV's? Should we install windmills and solar panels on our house?
Yes, you should sell your SUV's. Not because they guzzle gas, sure that's a valid reason, but because they're stupid. Minivans are much safer, and honestly - how often do you really need 4WD? I mean, honestly?
No, don't install windmills and solar panels, just yet. Because the honest truth is, the whole point of energy policy is coming up with a solution to an economic problem. The dinosaurs are already dead. All that's left of them is the money they're worth, and how much it will cost to replace them. If we go nuts and spend all our money on the replacements, we won't have any money to pump into our economy, which is the whole reason we want a replacement in the first place, to keep our economy booming ahead. Solar panels and windmills just plain aren't commercially viable and economically efficient. All you're doing is replacing one expensive energy source with another one.
You would do well by planning now on how you can make yourself more energy efficient later. Buy high efficiency, low energy consumption appliances. Don't break your bank doing it, that defeats the whole purpose. Within your spending range for each new appliance, strive to purchase the unit that has the lowest yearly energy cost. Compare those little yellow tags on each model, and buy the one (within your budget) that has the loweat yearly cost. Eventually, you'll replace every appliance in your house with new appliances that consume less energy, and your overall consumption will be significantly reduced without much effort.
Second, when you buy a new vehicle, think about what's changed since the last vehicle you purchased. You may be emotionally married to that GMC SUV, but be honest - the kids are growing up now, soon they'll be driving their own cars, and you really don't need it any more. Buy a big car instead. Or a minivan. Or maybe it's time to move back down to a mid-sized sedan. Be realistic. Plan ahead 7 years for your next car and take into account what you'll really use it for. Don't worry about hybrids yet. Again, stupid. Spending more money on the non-renewable resources to make batteries iis not superior to spending more money on the non-renewable resources to drive a gas guzzler. Just buy the most efficicient car in your price range for the size you really need.
Lastly, don't expect things to get better. Plan now to be more energy efficient ten years from now, because it will most assuredly be worse then. And having not broken your bank to get there, you will laugh at your so-called "green" neighbor next door who is replacing his solar panels for the third time, and the other neighbor who still can't manage to figure out that buying an HE water heater five years ago would still be saving him money today. Energy-proof yourself, then sit back and laugh at the morons who either didn't or went broke going all out.
Oh yeah, and all I can say for gas prices now is, invest in oil company stock. The gains & dividends will offset your higher prices. :)