I can’t believe what I read from some of you…

 

            The reason oil futures are selling for over $55 a barrel is because SOMEBODY in the world is willing to PAY $55 per barrel for oil not yet out of the ground (wherever it happens to be drilled). The world supply of oil is tight. More people are using more oil. And it’s gonna go to whoever pays the most. The Chinese economy is booming, and all of that stuff that you buy at Wal-Mart that’s cheap and made in China has flooded that country with a lot of cash. And they’re gonna spend it to improve their lives! Prices for oil, weld rod, steel, Portland cement, and lumber are indicative of a world market that has demanded more from otherwise limited supplies.

 

            And government price caps? You’re kidding me. There’s already enough government regulation just on making the stuff! If the government starts regulating prices, they will also regulate supply. Anyone ever heard of Medicare? That’s how they do it with government / taxpayer supplied healthcare for geezers.

 

            And what about summer demand. It’s necessary for the companies to raise their prices to discourage excessive use. Oil refineries are operating at peak levels. There are engineering limitations as to how much gas can flow through a pipe. And if any of you know about liquid, mechanical, or electrical production, then you’ll agree with me that running your process at ‘full power’ is going to give you headaches. Eventually pipes rust, valves leak, fuses blow. And then you have to shut the whole thing down to repair it. Also, most of you will notice that the electric companies do the same thing: they graduate the price per kilowatt-hour based on total usage per month. APS charges X amount for up to 400 kw-hrs, and then XX for 400-800 kw-hrs, and then XXX for over 800 kw-hrs. This encourages economy on the demand side, plus discourages waste.

 

            If gas goes to $5.00 per gallon, I’m willing to pay it. But I will be the most conservation minded driver I can be!  You would do the same. Check the air pressure in your tires. Minimize braking by anticipating streetlights and traffic. Drive the most economical vehicle in your fleet. Combine trips. Any others? There are thousands of ways!

 

            And it should be mentioned that conservation in small amounts does go a long way. Consider how tight gasoline supplies in Arizona are. If everyone reduced their personal gasoline consumption by 10%, there would be a gas glut in days! (And boycotts don’t work. You EVENTUALLY crawl back for your gasoline fix!)

 

Bill