Toledo
Blade Editorial...
Fueling gas prices
Americans want to blame someone for gasoline prices that have hit $4 a
gallon locally and in some parts of the country are even higher. There
is plenty of blame to go around, but there are few real villains.
At least one finger should be pointed at fickle consumers. Too often,
drivers swear off gas-guzzling vehicles when the cost of crude oil
soars, only to be tempted by size and horsepower when prices dip.
High gas prices make it more expensive to fill up the family car or
truck. They also make it more costly to feed your family, buy flowers
for Mother’s Day, and replace that worn-out washing machine. Some
experts speculate that if the price of crude continues to increase, it
could throw the country back into a recession.
Oil companies and distributors are easy targets. President Obama has
ordered the Justice Department to investigate whether fraud or
manipulation helped cause high prices at the pump.
The President also wants to end $4 billion in subsidies for oil and gas
companies. That resonates well with consumers, as oil companies get set
to announce record profits for the first quarter of 2011. But it’s less
a solution than an attempt to be seen doing something.
Republicans blame the White House. Senate Minority Leader Mitch
McConnell said the Obama Administration had “declared what can only be
described as war against American energy.” This ploy also appeals to
many consumers, especially those who believe the United States has
ample reserves of its own that oil companies could tap if not for
excessive government restrictions.
Speculators have a bigger impact on prices. They worry that the
democracy protests that have shaken and sometimes deposed governments
from Morocco to Iran will impair the flow of crude from oil-rich states
in the Middle East.
The more scared traders are, the higher prices soar, even when supply
remains unchanged. Add increased Chinese demand for oil to the mix, and
the only wonder is that prices haven’t risen faster.
More important, however, is the American driver. The 1973 Arab oil
embargo showed the danger or U.S. dependence on foreign sources of oil.
But it wasn’t enough to end our love affair with big cars and trucks
with powerful engines and tiny miles-per-gallon numbers.
When gas prices spiked nearly three years ago to a national average of
$4.17 a gallon, gasoline-electric hybrids and other fuel-efficient
vehicles surged for a while in popularity. SUVs, pickups, and other
vehicles with poor fuel efficiency gathered dust on dealership lots.
But when prices fell, so did the cachet of fuel-sipping vehicles.
The only solution to high gas prices is to be able to thumb your nose
at them. And that means changing the way Americans drive --
permanently, not just until the Middle East settles down and prices
moderate again.
It also means investing in the car of tomorrow, whether it is driven by
electricity, biomass, hydrogen, natural gas, or some technology not yet
developed.
Read it at the Toledo Blade
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