Don't Demand It

As oil is a global product, how is it we should expect our government, one government among three hundred others, to be able to do something about the price of gas?

Outside of the $.18 per gallon federal tax which I suppose could be altered, the price of crude is set on the world market. Peruvians are paying the same price for a barrel of crude as are Moroccans as are the Chinese, as are we.

Then we love to lambaste our multinational oil companies like Chevron and Shell who are "gouging us," "taking advantage of us," or otherwise sticking it to the little guy. Interesting. They produce only about 6% of the world's supply -- the rest comes from state run oil companies -- ARAMCO in Saudi Arabia, PEMEX in Mexico, etc. If indeed we enact legislation to seize the "excessive" profits from Exxon et al, the net result will hardly effect a change in the price of petrol at your pump.

For someone who has lamented the tragic state of American suburbia and its energy intensive requirements, your Franklin Monologues author takes great pleasure with $4 (and rising) gasoline. I enjoy being spot on regarding the actions this nation will take, almost in lockstep -- step one, we'll go after "fraud, waste, and abuse" in the oil markets, ensuring that there's no price gouging, or that ruthless speculation gets weeded out. When that fails to produce any meaningful results, as we all know it will, we'll then (step two) rhetorically ask why we're not investing in the development of the ninety three Saudi Arabia's worth of oil locked up underneath North Dakota in the shale plays. When that fails to produce any meaningful result, as we all know it will, then in step three we'll ask for drilling rights in ANWR, rhetorically asking why migratory caribou seemingly have more rights than extreme commuters who grind out daily commutes from Stockton to Milpitas cleaning the next hot-shit Internet company's buildings after hours. Step four involves Republican grandstanding, asking why Obama hates America, hates our way of life and asking why he's out to destroy our economy and the good folks of America. Step five involves discussions on a gas tax holiday. Step six, however, is the only meaningful step-- people simply decide to drive less. Demand falls in response to $4.50 diesel, which raises inventories and lowers prices.

If you want lower gas prices, then drive less. The price will fall if you don't demand it. That's pretty simple, really, and this is already happening.

Friday's bicycle ride down Franklin Blvd., all 25 minutes of it, was indeed wonderful. A massive tail wind and $4.19 gasoline both acting to make my ride a beautiful thing -- little effort needed in pedaling and fewer cars to potentially mow me down.