Pump Prices
posted in General |PUMP PRICES
It is only April, but the issues for the upcoming Presidential election are lining up for serious debate. During the next 6+ months, we will be getting a bellyfull of commentary about the Iraqi war, the War on Terrorism, 9/11, exit from Iraq, Roe v. Wade, Gay marriage, Welfare reform, Judicial appoinmemnts, tax hikes, tax cuts, and use of steroids by ball players. Who knows what else, but whatever the issue, it won't be hard to distinguish between George Bush and John Kerry.
Nothwithstanding all of the above, a pivotal issue could very well be the price of gasoline at the pump. As the prices climb over $2.00/gallon, the Kerryites no doubt will try to pin the “big, bad, oil” label on Geo B and Dick Cheney. But maybe this kind of debate will be of benefit to Americans long range. Oil of course, is a finite resource, and demand is getting higher an higher as the Chines and Indians add to the demand curve now supported by Western Europe, the USA and Japan. Stronger demand and a limited supply means higher prices. And how well the Saudis know that. Also, the US dollar has fallen in value so the Saudis will want more dollars to buy their product. Hence the Saudi decision to cut back production (sort of like an old capitalist trick) to drive up prices.
All of this reminded me of an excellent lecture offered a number of years back by an eminently qualified academician whose name escapes me. He said the the US would never get serious about a national energy policy until pump prices exceeded $3.00 per gallon. In today's terms, that would be $3.50 per gallon. Only then, he said would we get serious about gas effecient cars, energy conservation measures, mass transit, enhancing petroleum supplies, and developing new energy sources. It was his view that until it REALLY hurts, nothing major will be done – just 4 eyed balding egghead professors riding to work on a bicycle urging that we not drill in the Arctic, not drill offshore, not drill in the mountains, and not look for new oil sources. I think he is right. Until the gas prices hit a critical point, the political gamesmanship will continue in Washington. Even now, an ATTEMPT at an energy policy is bottled up in the Senate my Mr Kerry and his buddies on the left side of the aisle.
I wonder if the mainstream media will point this out? In 2004? Come on!