The Real Reason Why Gas Prices Are High
By Jim Willis on Nov 12, 2007 in Business, Environment, Transportation | Printable Version
In typical and predictable fashion, the leftists at the Press & Sun-Bulletin have written an editorial blaming Detroit for not producing fuel-efficient automobiles. The implied message is, high prices for gas would be just fine if we were driving cars and vans and SUVs that got 100 miles/gallon. In part, the editorial reads:
[I]t still doesn’t let auto manufacturers off the hook for not responding quickly enough to the need for better fuel economy–a need that has been apparent since the 1970s. Sure, it’s great to have the latest gizmos in new models such as global positioning systems, but what drivers really need now is better mileage per gallon. Just ask the residents of Gorda, Calif., who were paying $5 a gallon for regular unleaded gas last week.
Hello? Anyone listening out there in Detroit?
To which I say: Hello? Anybody home at the P&SB? Are you really that dense? Of course not. This is typical liberal thinking. Blame the auto manufacturers (i.e. business) for high prices. How about blaming the REAL culprits–environmentalist zealots who prevent new drilling for oil or natural gas. And who prevent more refineries from being built. It’s Economics 101: The demand goes up because our population increases, but supply is artificially held at the same level. More demand for the same supply equals an increase in price. Of course simple logic usually escapes the editorial writers at the P&SB!
But don’t take my word for it. How about the following words, which are part of an independent study titled The Emerging Oil Refinery Capacity Crunch published in 2005 by ICF International:
In large measure the high level of energy prices today has been driven by concerns about the availability of spare crude oil production capacity to meet growing global demands for oil products, and the potential for supply disruptions in crude production. However, ICF Consulting believes that in the past year, and over the next roughly 5-year period, that the ability to meet forecast demands for oil will be driven by refinery capacity issues, not crude availability.
Enviro-nutjobs who prevent new refineries from being built in the U.S. are the real reason that gas prices are high. Quit trying to make us squeeze into Yugos and let the free market do it’s job.
Agree? Disagree? Leave a comment for everyone to read!
Technorati Tags: Press & Sun-Bulletin, Binghamton, oil refinery capacity, environmentalism, fuel efficiency
Brent | Nov 13, 2007 | Reply
Ah, yes. AND THE ANSWER IS ETHANOL!
Or not. If we took all the corn that is currently produced in this country today, and turned it into biofuels, we would only meet around 10% of the demand. And then, what would happen to everything else? Have you noticed already that the prices of certain products that contain corn (everything) is going up because corn is being pushed toward the biofuel market? Something people never look at… The REAL COST of going green. We are seeing the real cost right now, as gas prices blew past the 3 dollar mark and never looked back for a second. As you said, our desire to be less dependent on oil did not match up with REALITY.
Oil is a necessity right now until we come up with something else to replace it, and this problem is much much more complex than anyone can fully understand. At the very least, we need it, and we need to get it, from ourselves first and everyone else last.
I suppose the answer to the problem according to the PressandSomeBullInIt is to wag fingers at anyone else but themselves. I think the answer is to HELP FIX THE PROBLEM. Then, come back and talk to me. Until then, shut yer pie hole and editorialize about something you might actually understand.
Like…Hmmm…I’m suddenly at a loss.
Jim Willis | Nov 13, 2007 | Reply
As always Brent, you have brilliant insights! You’ve touched on a very important issue. Ethanol is being touted as the savior of our energy woes, and it just ain’t so, as you aptly point out. I was not aware of that statistic…more people should be. If we convert ALL of our corn to ethanol we would only meet 10% of our energy needs. Wow! You’re also right that this is a big, complex issue. Unfortunately, people aren’t screaming loud enough that prices are too high. There is not enough pressure on the enviro-nuts to back off on preventing more refineries. Until the people make a loud noise, I fear prices will continue to go up. I just heard a news report that Britain now pays $8/gallon. Are we ready for that?