The Price at the Pump

The price of gas has spiked suddenly in the past year, from $70/barrel of crude oil in early July 2007, to $137/barrel in early July 2008. What is going on? Several factors have contributed to the recent surge in the price of this nonrenewable resource:

• U.S. dependence on imported oil for 65% of its crude supply
• China and India’s large and growing demand for limited oil supplies
• Lack of new refineries
• Decline of the U.S. dollar
• Oil speculation
• A world oil supply that has been flat for the past three years, and anticipation of world "peak oil" production, after which production drops drastically  (see graph from U.S. EIT below)
  
  

http://www.eia.doe.gov/pub/oil_gas/petroleum/feature_articles/2004/worldoilsupply/oilsupply04.html

In response to high gas prices, President Bush and some members of Congress have called for off-shore oil drilling. In reality, drilling off shore will not lead to immediate alleviation of gas prices, as this oil will not be commercially available for 15 years.

So what can you do? There are easy ways to reduce the amount you spend on gas. A survey by Green Car Congress shows that as gas prices rise, many people change their driving habits. These changes include actions as simple as consolidating errands done with a car to making a bigger commitment, such as replacing driving with walking, biking, or public transportation.

If our society wants to be less dependent on a commodity with price volatility like oil long-term, we need to invest in a cleaner transportation future. Contact your local, state, and federal representatives to tell them that you want to see more public investment in mass transit and fewer subsidies for automobiles to help level the playing field for sustainable transit options. 

For those who can afford it, investing in clean energy is necessary and encourages domestic economic security. Renewables and alternative energy are not only better for the environment, they provide lasting solutions to this problem, along with millions of jobs in the United States, and a boost to the U.S. dollar. The fossil fuel-dependent energy path can be changed, but this process needs your help—it’s not going to happen by itself.