2006-04-14

Who's to blame for high gas prices?

Politicians propose legislation that would increase regulatory scrutiny of Big Oil - but fail to mention that voters could maybe give up the giant SUVs.
Spring is not even a month old but it's already promising to be a long hot summer for American drivers. Gasoline prices are surging toward highs not seen since the wake of Hurricane Katrina last fall - the national average now stands at $2.68 a gallon - and some experts are predicting $3.00 a gallon before long.
Interesting article, which draws the root of the gas problem not towards the Big Oil companies (reportedly, "Big Oil makes its money by pumping oil out of the ground, not refining and selling it as gasoline. Of Exxon's mammoth haul, only a tiny fraction came from making and selling gas in the U.S.") but to the traders at the NYMEX and other global bourses.
Kohl's bill, alas, won't do much to lower gas prices. The real problem here is the reluctance of Washington to make more than modest improvements in fuel-efficiency standards for cars and trucks. At the same time, politicians and other leaders seem unwilling to at least jawbone more Americans into giving up their SUVs and Hummers in favor of more fuel-efficient cars. Suing OPEC under U.S. anti-trust laws may be smart politics, but what about actually telling voters that they, too, have to take some responsibility for the problem?
Somehow I don't see the majority of Americans doing much more than whining over the gas prices as they spend $50 a day filling up their SUVs. Auto makers (some) are finally doing their part, Toyota has their excellent Prius (which I own one of, and rave about constantly) and also have a hybrid SUV (the Highlander), other models are available as well... But other makers still push their Hummers and Explorers as status symbols - Bigger is Better. Not just in cars, but you see it in houses too. It's a cultural hangup. Bigger portions of meals, bigger super-sized drinks, heck even bigger computer monitors (as I sit here staring at my 20" widescreen LCD).

Will we ever get to the point where we won't need our super-sized transportation? How many people really, really need a car the size of a Hummer for everyday transportation? I admit to some guilt myself - I drive a Prius to work everyday, which saves tremendous amounts of gas, but for road trips my family packs into our Town & Country minivan with only a little better gas mileage than the old Escort wagon (but much better than an SUV!). The trips go much easier with the built-in DVD player and roomy exterior... That said, how many trips as kids did we take in our old family sedan, with nothing to entertain ourselves in the backseat but toys or books? Or playing road games?

So yeah, it's a cultural hangup. I don't see us getting past it anytime soon. But maybe we are making some slow progress... Anything would help at this point...

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