We, as Americans, will never again enjoy the oil prices of past generations. Why? Unfortunately there is no simple explanation. Many factors play into account for the high cost of crude. Several causes that contribute to this increase in fuel costs surrounds the one primary cause. An increasing world population creates a constant increase in fuel demands. Cause and effect in simple terms. Other factors are, but not limited to; Mexico is cutting US supplies to one of the company’s Gulf Coast refineries by up to 15 percent. Mexican fields, including the giant Cantarell field, are drying up, and sales of crude oil to the United States have dropped to their lowest level in more than a decade. Another little known factor is India’s Tata motors, who’s development of a low cost car ($2500) the company hopes that by making automobiles affordable for people in India and elsewhere, it could eventually sell 1 million of them a year. The need for crude increases.
Developing countries like China and India, want to join the ranks of economic powerhouses and question why their oil use should be more constrained than those countries who developed before them. It is a never ending cycle of consumption and economic growth.
In a recent Washington Post poll, 51 percent of those who responded said rising gas prices are causing a serious financial hardship for them or others in their household. It was the first time a majority had said that since the poll began posing that question eight years ago. The rising fuel prices are also adding to inflation, aggravating the U.S. trade deficit by 50 percent and is taking a toll on businesses already struggling with the economic slowdown caused by the housing and financial crises.
Cheap oil has been the primary building block of the American economy and it’s society, from big gas guzzling vehicles to millions of miles of degrading interstate highways, to heating and energy producing utility companies. Everything we do is based on fossil fuel.
For the better part of a century, U.S. policy contributed to problem. Gasoline taxes were set aside for highways, which opened up more prospects for new communities. This in turn advanced more driving, more gasoline consumption and more taxes for the interstate system. Today U.S. automobiles use more than 9 million barrels of gasoline a day, which is more than any other country.
Also a factor in the US are environmental interests. The need for gasoline and the concern for the environment has no middle ground today. We are sitting on natural oil and gas reserves (Anwar and Bakken) that could make us independent of foreign oil imports, but due to the strength of environmental groups and the weakness of government policy makers, these reserves will not be employed in the near future. The outcome of this impasse is that every day, consumers pay $6 billion to $7.5 billion more for crude oil than they paid six years ago, and at this current rate, they will pump more than $1.5 trillion a year into OPEC, Russia and other oil exporting countries.
So who is at fault? Is it the governments 45 cents per gallon fuel tax, the 4 cent per gallon oil companies earnings, the environmental concerns, or the inability of government lawmakers to alter our economic difficulties? None of the above.
It is us, the consumer, who needs to take the responsibility and who has the power to make a difference. It is us who needs to solve this dilemma by changing obstructed bi-partisan government policy and special interest’s dogmatic narrow mindedness. It is us who needs to conserve, change our way of thinking, and explore alternative actions to make the changes needed to survive a drastically changing world.
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