Saturday, July 19, 2008

Global Economy Is Part Of Gas Price Culprit

American businesses helped create the energy shortage when they started outsourcing services and manufacturing goods abroad. Within the last decade, China and India have seen a boom to their middle class. It was created when their citizens started earning money from jobs that once belonged to Americans. Chinese and Indian citizens are now taking that money and buying cars. Accordingly, these two countries importation of oil has greatly increased. In essence, oil resources that Americans relied on are now being diverted to other countries. This creates a deficit of oil and deficits cause the prices to go up. Just as one can not borrow his way out of debt, we can not drill our way to lower prices.

I am not opposed to drilling in ANWR or along coastlines. However, I warn my readers not to expect this to solve our high fuel cost problem. It takes five to ten years to bring an area into production, so their is no immediate relief by opening these areas up. Furthermore, I don't want to hear any proponents of this "great idea" bitching about an oil rig blocking the view from their million dollar condo. Americans standing up and refusing to do business with companies who outsource and consuming less gas in the US would be a quicker relief.

The quickest relief to high prices is to not pay them. It's a tough pill to swallow, but Americans need to change their habits. Stop making unnecessary trips such as a family with multiple cars going to the same event in separate vehicles. Gas prices are effected by inventories of gasoline. Parked cars help in two ways. They keep gasoline in inventory and money in owners pockets.

Gas Saving Tips

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