Just a little something to think about this election season.
It’s always there, but I think the time has come for decisions to be made and action to be taken, instead of just wishing it will all go away.
I’m talking about energy, I’m talking about what the hell America plans to do about it.
Consider this for a moment: when George Bush the Second (aka “Shrub”) took office, do you know how much a barrel of oil cost? In January, 2001, a barrel of West Texas Crude was $29.58. By the next year, yes after 9/11, it had dropped to $19.67. Which is about the price it was when Clinton the First took office.
It closed on Friday just shy of $120.
If we want to assume that the price will drop back to $25 a barrel? We’d be fucking nuts. No such thing will happen.
No, instead, demand worldwide will continue to increase, and this will pressure the price of oil. This is supply and demand. This is not Exxon making a profit, because Exxon - as big as they are - is just one company, and there are many, many others out there. Since oil is oil, we could buy it from Chevron instead. “Oh, but they’re in on it, too!” says the conspiracy. I don’t think so, Tim.
No, this is not a parlor trick on behalf of the oil industry. It is not because of 9/11. It is not because terrorists are keeping us from opening the vast Iraqi oil fields, nor is it because of a hurricane. This is simply demand - worldwide - outgrowing supply.
Consider this: the world’s population is expected to increase by another 50% by mid century. The number of cars and trucks on the road, driven (ha) by developing nations, will double in about thirty years. If there is enough demand already, today, to drive oil to over $100 a barrel for months, imagine when there are twice as many people in line at the gas station.
Turning corn into ethanol, to supplement our gasoline, has turned into a fiasco as half the world faces food shortages. Suspending state taxes on gasoline sales, which fund little things like the highways we like to drive, won’t help provide more oil to turn into precious gasoline, instead it will increase demand when there is already a lack of supply, while simultaneously forcing states to tax other things to keep the highways maintained (there won’t be enough money to build new ones, just try and keep the existing roads from falling apart).
So think about this, as you watch the pundits and stump speeches: who is going to help us navigate this mess?
