Americans and Energy: We’re Nuts
Wednesday, March 29th, 2006We Americans are crazy when it comes to energy. I am currently paying $2.65 a gallon for gas, and we are only beginning to enter the peak driving season. I bet that we’ll be seeing $2.99/gallon gasoline soon. And you know what? Americans will be complaining about it, but in typical American fashion, we will be blaming everybody but ourselves for it.
Why are gas prices so high? Well, there are a variety of reasons, but the main reason is supply and demand. The US, China, and India are gobbling up gasoline, and the demand is only expected to grow. OPEC is actually trying to lower prices, and doesn’t seem to have the spare capacity to do so! Also, we need more refineries in the United States, and on account of environmental red-tape and oil companies that like tight supplies (which yield higher prices), our “newest” refinery is over 20 years old. The third issue raising prices is geopolitics. The areas that have the most oil are often unstable, and the average person in many of these countries loathes the oil-consuming West. I estimate that the price of gasoline would be around fifty cents a gallon lower if Iran wasn’t so hostile to us, Iraq wasn’t such a mess, and militants in Nigeria weren’t threatening oil companies so much.
While we could have a more positive effect on geopolitics, that is up to our leaders, and we know how slow and ineffective folks in Washington can be. This means we the people can do one thing at this point: conserve, which will reduce demand. Imagine if every driving American took steps to consume 2 fewer gallons of gasoline of gasoline per week. This could be accomplished by driving a more fuel efficient car, cutting out one non-essential trip per week, walking more, starting and stopping more gradually, coasting down hills and so forth. If all of us drivers did this (and all other factors stayed the same), we would add at least 20 million gallons of excess gasoline to the stockpiles each week. Over the course of 2 months, this build of 160 million gallons would be an economic bear that nobody could stop, not even the most ambitious futures traders, and prices would collapse from the current levels.
Don’t believe me? Many experts believe that if we had not had a mild winter this year, gasoline (and heating oil) would be over $3.00 a gallon right now. Nature took care of our demand problem, but had nature not have been favorable this winter, we could have seen record prices.
But alas, we Americans love our big status symbols, err, cars, and don’t like to be told what to do. Even though we are in a time of war, and oil feeds our enemies, even the most patriotic Americans proudly support the finances of the terrorists through their oil addictions.
Please join me in trying to develop some common sense about energy.
Doesn’t the photo on the left just kind of say desolation? It is a photo of an old school in the area. I actually used to play on this playground.
Many of you know I came to the Catholic Church via Anglicanism. I still like a lot of what Anglicanism has to offer, especially in terms of prayer and spirituality. The classical Anglican spiritual tradition is very rich, as many former Anglicans will tell you (Fellow 

