$3.65 per gallon? What a bargain!
This morning, I filled up the gas tank off my little 4-cylinder Ford Mustang. It cost $49.00, which I believe is a personal record. The price? $3.43 per gallon.
Good thing, too. Because in the afternoon, on my way to pay for a oil change and recharge on the air conditioning, the gas price had risen by 22 cents. Yep, $3.65 for a gallon of gas. I commented to my auto mechanic that my service bill was practically cheaper than a fill up. He choked down a laugh, and admitted that his last fill up on his pickup was over $100, and that he was worried he wouldn't be able to use his boat this summer.
My cashier at Taco Bell also had to choke on a chuckle when I mentioned that my entire dinner was cheaper than a gallon of gas. She too had the look of concern on her face that things were not right in paradise.
$3.65 per gallon, eh? That is certainly a record high price, in both real and inflation adjusted dollars, for Michigan. Some blame it on refineries, shut in oil, geopolitics, or those corrupt oil billionaires. "They have to do something about the prices" people tell me, failing to mention exactly who "they" are. I am of a different opinion on gasoline prices... They are downright cheap.
$3.65 a gallon is a real bargain. I had to walk from work to the service station, a 25-minute high speed race to beat closing time. A single mile at a pace like that, I would have given somebody $5 to get me there in three minutes.
And now, safe and secure at home, with a happy tank of gas gurgling in my tank, I can make it to work, and back -- a round trip distance of fifteen miles -- at least 25 times.
Of course, reality isn't quite that simple, is it. I find I have family obligations that will burn up at least a hundred miles each week. And I find that I happen to be one of diminishing number of folks who actually have a positive savings rate and money in the bank. For some people, $3.65 gas is a downright nightmare.
Recall that only a few months ago, gasoline was a mere $1.93 per gallon. That was an anomaly, but reminded people of the good ole' days, when gasoline was even less. And that wasn't all that long ago. In fact, gas under $1.50 was the norm for at least twenty years, and as little as four years ago, you probably saw a $1.19 at the pump.
Imagine what it would be like to lived on a fixed income, or a low income, and living paycheck to paycheck, as 70% of American's do. What would the change of $1.93 to $3.65, in only four months, have on a person's morale? Devastating on some, I must say.
And is this the peak of prices? Oh, I doubt it. Looking at the graph from last year's summer prices, it looks like the pre-Memorial day run up was followed by another 30 cents of increase by the end of July. Yep, that suggest that we'll see four bucks per gallon this summer. What a bargain.
So, what is causing this run up in prices... this tripling of prices over the last four years? Well, I have an answer for you, but you aren't going to like it. You won't like it because there is no one to blame... or at least no one else. We, my friend, are the culprit. Each one of us, through our exuberant energy lifestyles, is to blame.
Oil, you see, is a LIMITED resource. And like any other limited resource, it is getting used up. The thing that distinguishes oil from any other doo-dad's is that as an oil field gets pumped down, it takes more energy to get the oil out, it comes out slower, and there is less of it. Add up all the pumps, and all the oilfields in the world, and you will see, my friend, that we are very near the peak of oil production. Yes, the infamous peak oil has finally arrived.
Lucky for us, here in the good ole' U.S. of A., we have the wealth to keep on purchasing that oil, even as the global oil production heads into decline. Sure, it is causing the prices to go up. Sure, it is causing people to look every which way but the root supply. Sure, it is going to be a real pain for some folks, figuring out how to make ends meet. But at least we aren't in the poor countries of the world who really can't afford to buy oil anymore. Sorry, we can pay more, so it's ours.
But that still doesn't get to the root of the issue, does it. How can I say, "$3.65, what a bargain!" Well, it's because gasoline is probably the most valueable liquid on the earth, next to water and mother's milk, that is. One gallon of gas has enough energy to carry you 10,000 miles... if only you owned that world record breaking, one person, ultra-aerodynamic car.
Bad example? Okay, I'll try again.
In a single gallon of gas, there is more energy than ALL the food that your body has used in the last two weeks. Yes, one gallon of gas equals two weeks of food. How much did that food cost you? More than $3.65? You better believe it.
Gasoline, at $3.65, is a downright steal. For most working people in the USA, a single hour at work will pay for three gallons of gasoline. That ain't so bad, if I do say so myself.
So there you have it. What a bargain! Gasoline, only $3.65 per gallon! Enjoy it while it lasts because someday, in the not too distant future, you too will be priced out of the market.
Ready to Learn More?
Videos and Movies about Peak Oil
A Scary, Freaky, Accurate Web Site on Peak Oil
A One Click Google Search for Peak Oil
Good thing, too. Because in the afternoon, on my way to pay for a oil change and recharge on the air conditioning, the gas price had risen by 22 cents. Yep, $3.65 for a gallon of gas. I commented to my auto mechanic that my service bill was practically cheaper than a fill up. He choked down a laugh, and admitted that his last fill up on his pickup was over $100, and that he was worried he wouldn't be able to use his boat this summer.
My cashier at Taco Bell also had to choke on a chuckle when I mentioned that my entire dinner was cheaper than a gallon of gas. She too had the look of concern on her face that things were not right in paradise.
$3.65 per gallon, eh? That is certainly a record high price, in both real and inflation adjusted dollars, for Michigan. Some blame it on refineries, shut in oil, geopolitics, or those corrupt oil billionaires. "They have to do something about the prices" people tell me, failing to mention exactly who "they" are. I am of a different opinion on gasoline prices... They are downright cheap.
$3.65 a gallon is a real bargain. I had to walk from work to the service station, a 25-minute high speed race to beat closing time. A single mile at a pace like that, I would have given somebody $5 to get me there in three minutes.
And now, safe and secure at home, with a happy tank of gas gurgling in my tank, I can make it to work, and back -- a round trip distance of fifteen miles -- at least 25 times.
Of course, reality isn't quite that simple, is it. I find I have family obligations that will burn up at least a hundred miles each week. And I find that I happen to be one of diminishing number of folks who actually have a positive savings rate and money in the bank. For some people, $3.65 gas is a downright nightmare.
Recall that only a few months ago, gasoline was a mere $1.93 per gallon. That was an anomaly, but reminded people of the good ole' days, when gasoline was even less. And that wasn't all that long ago. In fact, gas under $1.50 was the norm for at least twenty years, and as little as four years ago, you probably saw a $1.19 at the pump.
Imagine what it would be like to lived on a fixed income, or a low income, and living paycheck to paycheck, as 70% of American's do. What would the change of $1.93 to $3.65, in only four months, have on a person's morale? Devastating on some, I must say.
And is this the peak of prices? Oh, I doubt it. Looking at the graph from last year's summer prices, it looks like the pre-Memorial day run up was followed by another 30 cents of increase by the end of July. Yep, that suggest that we'll see four bucks per gallon this summer. What a bargain.
So, what is causing this run up in prices... this tripling of prices over the last four years? Well, I have an answer for you, but you aren't going to like it. You won't like it because there is no one to blame... or at least no one else. We, my friend, are the culprit. Each one of us, through our exuberant energy lifestyles, is to blame.
Oil, you see, is a LIMITED resource. And like any other limited resource, it is getting used up. The thing that distinguishes oil from any other doo-dad's is that as an oil field gets pumped down, it takes more energy to get the oil out, it comes out slower, and there is less of it. Add up all the pumps, and all the oilfields in the world, and you will see, my friend, that we are very near the peak of oil production. Yes, the infamous peak oil has finally arrived.
Lucky for us, here in the good ole' U.S. of A., we have the wealth to keep on purchasing that oil, even as the global oil production heads into decline. Sure, it is causing the prices to go up. Sure, it is causing people to look every which way but the root supply. Sure, it is going to be a real pain for some folks, figuring out how to make ends meet. But at least we aren't in the poor countries of the world who really can't afford to buy oil anymore. Sorry, we can pay more, so it's ours.
But that still doesn't get to the root of the issue, does it. How can I say, "$3.65, what a bargain!" Well, it's because gasoline is probably the most valueable liquid on the earth, next to water and mother's milk, that is. One gallon of gas has enough energy to carry you 10,000 miles... if only you owned that world record breaking, one person, ultra-aerodynamic car.
Bad example? Okay, I'll try again.
In a single gallon of gas, there is more energy than ALL the food that your body has used in the last two weeks. Yes, one gallon of gas equals two weeks of food. How much did that food cost you? More than $3.65? You better believe it.
Gasoline, at $3.65, is a downright steal. For most working people in the USA, a single hour at work will pay for three gallons of gasoline. That ain't so bad, if I do say so myself.
So there you have it. What a bargain! Gasoline, only $3.65 per gallon! Enjoy it while it lasts because someday, in the not too distant future, you too will be priced out of the market.
Ready to Learn More?
Videos and Movies about Peak Oil
A Scary, Freaky, Accurate Web Site on Peak Oil
A One Click Google Search for Peak Oil