Tuesday, April 29, 2008

Just blowing off steam

I have read more articles on rising fuel prices than you can imagine. All of these articles have come to the same conclusion...energy is EXPENSIVE!!! This is not news, that is the plain truth of it. Energy, like every other commodity, is demand driven. That is, the more demand, the higher the cost...wow, sounds like econ 101 doesn't it? Energy is just like corn, wheat, soybeans, or any other product that is publicly traded. Ask a farmer how corn prices were 10 years ago and he will tell you about $1.80/bu corn. Today corn is trading for better than $4.00/bu; spring wheat in Montana traded for $25.00/bu for about a week in March this year, up from a historic average of $5.00/bu. Why do I say all of this? If you want the energy costs to decline, simply demand less energy! It really is that simple. An example is soybeans; which went from $14.00/bu to $3.00/bu nearly overnight in 2003--04; the demand did not meet the supply and prices fell radically. It is the same with energy.

I am so tired of people grouching about the high cost to fill their vehicles, but are unwilling to leave their vehicles parked in the driveway for even the simplest of tasks (i.e. going to work, going out for that late night munchie run, etc.) . I currently (though not much longer) work part-time in a convience store and see people from here in town drive three blocks to the store, leave their vehicle running in the parking lot while shopping, and then drive home...HOW WASTEFUL IS THAT!!! Why on earth does anyone need to drive to work when they live in town? It is a small town, not even two miles from end to end. Now, before anyone chimes in about how much of a tree hugger I am; I drive a full size, 4wd pickup (16 mpg) and I have no intention of trading it in. I just don't drive the truck to work, or even to the grocery store to shop. I use the truck to drive to Billings, when I need to go, or to anywhere that I just can't get to by walking or riding my bicycle in a timely manner. My gas bill is less than $125.00 a month, even at $3.59/gal, and it takes well over $70.00 to fill my truck. That is the answer people, just demand less energy and fuel WILL go down in price.

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