Each year, it seems, I have to post something about gas prices, and how American consumers can lower them at the pump. Each year, I have the same answer.
It's not about Libya. It's not about unrest in the Arab world. It's not about anything political at all, no matter what the New York Times says.
It's about economics. It's about you and your driving habits. It's about American consumers setting the marketplace to their advantage. Really. It's this easy......
This is the time of year excuses spew from the PR machines of the oil companies. The Middle East unrest made it easy for 2011, and it's as good as they've been able to come up with in a while. It's not the usual "refineries close for maintenence" or "deliveries from Alaska are stalled by pipeline repairs". We now have Libya to blame for $4.00 / gallon gas. But the fix it is close as our car keys...
Here's how we do it, America. I want your undivided attention.
Stop driving so damn much. There. I said it. Believe it or not, the U.S.A. is almost oversupplied at this very point in time. As I drove CA Hwy 33 a couple of weeks ago, I found the Kern County oil fields blazing away with production - it appeared that 80 - 90% of the pumps were cranked up, well above the norm. Easy to wind them up when per barrel prices were above $92, much better now that Mideast "tensions" have moved the marketplace over $100.
But get on the floor in your lotus position and visualize something with me.
Close your eyes. Imagine planning a daily trip route each morning over that first cup of coffee. How often do you need to go out? Can you combine trips by parking at one shopping center or mall and picking up several things? Or can you walk to your kid's school with them, eliminating one short drive and perhaps getting to know your kids a little better?
Can you look at how many times you use the car each day and for how many miles, and cross at least one trip off - every day? If all drivers did that every day, we'd be at a critical oversupply in less than a month - really. It IS that simple. We've done it before, mostly in a reactive mode because we couldn't afford to use gas at the rates lower prices encourage.
Now is our chance to make a proactive statement. Stop making unplanned trips. Walk downtown once in awhile. Ride your bike. Walk the dogs to the local dog park instead of driving them. Then watch gas prices at the pump. Any contrived scarcity issues will have abated. Overstock will take its place - then it becomes as simple as supply and demand, just like high school economics taught us. Don't drive as much, the marketplace will react within weeks. Prices will drop, and it won't matter if the Mad Hatter or Santa Claus becomes the leader of Libya. If nobody's buying oil, the price will drop until we decide it's fair again.
But make no mistake - the oil companies will, believe it or not, report record profits in the first quarter. With your support, though, by the end of the third quarter their profits will be merely obscene rather than unconscionable. It's in our hands now. Park the pick up or SUV and drive the smaller car to work, or take public transportation (ACE train to the South Bay from Livermore is a special ride, by the way). Walk instead of driving when you can. All I ask is that you forego ONE TRIP a day. That's all it will take. All the phony "experts" in business or government won't convince me otherwise.
Take charge now! To quote Peter Finch in "Network": we should be "as mad as hell, and we're not going to take it anymore." Walk, ride, lose one trip a day....and you watch - prices will drop as we drive fewer miles. It's in our hands. Make it happen. Do your part to reduce oil industry bonuses! One less trip. And please - let me know what you're doing and how it's working for you! See you on the trail - NOT driving!
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