$4.00 per gallon hype

What is the topic of the week in the news? Gas prices reaching 4 bucks per gallon. Even though most of us save on fuel by riding our bikes to work, we are still affected by the high gas prices in stuff we buy, like groceries. But here’s something that the media is not saying:

Though the weak U.S. dollar is encouraging traders to buy oil and other commodities as a hedge, ample oil supplies and weak economic growth presage a price correction in coming weeks.

and here’s something that the oil companies really don’t want people to know:

The cartel’s oil ministers know that the sluggish economies in the U.S., Canada and other nations will slice motor fuel demand. They fret that $100-plus oil prices in perpetuity will give even greater vigor to the development of ethanol- and electric-powered cars and trucks, which would permanently reduce demand for oil.

Source: Klipinger.com

Although Bike Commuters may not get all the ‘glory’ of them fancy electric cars, we can take satisfaction that we ARE doing something to reduce the demand for oil.

5 Comments

  1. Ben C March 5, 2008 9:16 am 

    OPEC is screwing us. They control the production and quantity.

  2. Quinn March 5, 2008 9:37 am 

    Personally I think gas should have hit $10/gal five yrs ago

  3. RL March 5, 2008 10:00 am 

    Q,

    Keep in mind, if gas did hit $10/gal, just like Moe said, everything else will be more expensive. Even new bikes would be more expensive since it would cost so much to get it here from Taiwan.

    Just last night I saw a station selling gas for $3.89/gal. It’s steadily increasing each week and that’s not good for consumers in every spectrum.

  4. Wayne Myer March 5, 2008 10:38 am 

    which would permanently reduce demand for oil…

    That’s funny. While I admit that I did not RTFA, this view is excessively narrow. Even if we all started driving electric cars tomorrow, the energy needs to come from somewhere. And our energy costs and usage, as Moe pointed out, are all interconnected.

    Petrol costs are hitting farmers both in raw fuel consumption, but also in fertilizer costs. Local milk here in VT has broken $5.00/gal.

    Even if we all stopped driving in America, we still lead high-energy lifestyles. The developing countries such as India and China can more than pick up any slack we create. There is no easy answer, and things are probably going to get a lot worse before they get better.

  5. Mike March 5, 2008 1:29 pm 

    Upshot: with transportation costs rising, and the dollar falling at the same time, maybe there will be an unforseen benefit–domestic manufacture of bicycles could increase, maybe even dramatically depending on how long current trends play out.

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