ALT-1 Are High Fuel Prices necessary – No
The kids are out of school and the summer season is upon us. Like clockwork, prices at the pump are slowly but surely beginning their annual leap into the stratosphere. By the time summer is in full stride; at or around the 4th of July, the price-per-gallon will once again cross that $3.00 threshold. When September rolls around and leaves begin to fall as temperatures cool, the kids will be back in school and fuel prices will once again drop. The next opportunity for a family road trip won’t occur until Thanksgiving. Of course, prices will rise again accordingly, and will remain relatively high until the Christmas holiday season is over. By January, automotive fuel prices will once again stumble, but something else happens at the same time: Heating fuel costs will rise! See how this works?
Put simply, the oil companies are greedy. When the potential for huge profits is realized, such as at peak times people take vacation trips, they will raise prices in a heartbeat. Think of how floral prices skyrocket around Mother’s Day and Valentine’s Day, and you’ll understand this concept. At the same time, this is rather puzzling, for a basic lesson in Economics 101 will teach us that when there is a great demand for a product, prices should drop due to heavy competition. It is sadly obvious that the oil companies don’t work that way.
Sure , we have and will continue to be told that there are shortages. Oil spills such as the BP disaster in the Gulf of Mexico aren’t helping matters, either. Despite this horrible incident brought on by blatant negligence, offshore drilling in US waters is prudent if we are to cease dependence on foreign oil. And that’s part of the problem: the Arabs have us where they want us. As a whole, we are too lazy to tap into our own resources and find it easier just to buy our oil from elsewhere.
Way back in 1968, this author was a 5th grader . A science texbook at that time stated that in the United States alone, there was enough oil under the ground to last some 5 billion years. So how is it that just a few years later; around 1973, we were suddenly in the midst of a fuel crisis? Even if we look to now, there are those who believe that we will be out of oil in 20 years. Thus, this is said to justify high fuel prices. Granted, there are many more vehicles on the road now than there were in 1968, but how did we use up 5 billion years’ worth of oil in 42 years? We must make one of two conclusions here: Either that science book was dead wrong, or we’re being lied to. This author for one adheres to the latter of these philosophies. Whenever an imagined “shortage” is conveniently created, it becomes open season to raise prices. This is not to say that inflation doesn’t play a role, because it certainly does. At one time, we paid about 32 cents for a gallon of gas, but the cars we filled likewise cost $2000 brand new.
High fuel prices are decidedly not necessary. We need to drill for our own oil right here in the USA and in our boundary waters. Since that’s apparently easier said than done, there is another option, yet we have never followed though with it. Poor nations such as Mexico and Russia have an abundance of oil. Instead of buying this commodity from volatile Middle Eastern countries that have been fighting holy wars for centuries, why not help the economies of the aforementioed nations? The Cold War is over; at least with the Russians. Aside from the resorts and tourist spots, Mexico is a land riddled with poverty. Why not give these counties a helping hand while improving their citizens’ livlihood by creating jobs at the same time? Chances are that gasoline in particular would end up costing about $2.00 a gallon and perhaps less.
As long as we stubbornly cling to business as usual, we can continue to see rollercoaster fuel prices that will furthermore climb to higher levels.
