Increasing Gas Prices

I received no fewer than 4 phone calls yesterday advising me to fill up my car with gas because prices were going to shoot up to over $3.00 overnight. Of course, they haven't yet...and I don't think they will. $2.75? A definite possibility. $3.00? Not yet...but eventually. Not that the people who called me were doing anything wrong...I appreciate them looking out for a friend and trying to warn me of the impending crisis...but, I had three-quarters of a tank and I wasn't going to sit in line with the other people who were panicking. And this brings me to today's article about the gasoline prices.

Gas works the way most commodities to in a capitalist society: on the supply and demand factor. There is a finite amount of oil in the world and, therefore, a finite amount of gasoline available for use. The demand for gas around the world has increased dramatically, therefore, prices rise because there is a limited supply and great demand. See how that works? And, that's the way it should be. I haven't see a great amount of panic out there. People aren't trying to conserve yet which means they can handle the increase in the price. Are you carpooling now? Riding public transportation? I don't know a single person who traded in a truck or SUV for a more efficient car or, better yet, hybrid. So, apparently the high gas prices haven't hurt too much.

What happens when gas hits a magic mark and is too high to pay for? Demand will decrease and prices will top out. Eventually oil will be too expensive and will slow the American economy and the Asian economy (which is the main reason we're in this pinch) and prices will hit a steady mark. That's the world economy. Are we going to run out of oil? Well, yeah, eventually I guess. But probably not within the next 50 years. But we will run out of the cheap oil that we've enjoyed for the last century. As prices increase, oil companies will be more willing to harvest oil that costs more to get out of the ground...therefore, we won't run out but the days of cheap gas are over.

So, that's my take on gas. Has it affected me? I'm not sure...probably. I think my willingness to just jump in the car and drive all over the place has probably diminished. I thought about going to Syracuse this weekend but I didn't want to run my car that many miles...I don't think it was gas prices as much as it was just running the crap outta my car. I also thought about going up to Rutgers again but came to the same conclusion...I put enough miles on the car without making this long range trips. But, hey, if someone else is willing to drive, I've got gas money. It can't be that much...not yet anyway.