Gas

So the big email rage has been the "Don't buy gas on May 15" emails. I've got a better plan, one that actually WILL make a difference: "Don't USE gas on May 15". See, by not buying gas, but using the same amount, you've simply offset the purchasing of the gas, it won't affect the prices or the stations in any way shape or form; BUT by not USING gas you will affect the price (or should, if the price of gas is following any sort of realistic economic model). I ride my bike to and from work everyday, a 3 mile round-trip. In a week this saves me 15 miles of driving, ~0.5 gallons of gas in my car. So in a month I'll save approximately 2 gallons of gas. What are YOU doing to reduce YOUR gas consumption?

So I have this to say: If you actually want to make a difference, alter your schedule on May 15 to reduce the amount of gas you consume. Ride your bike, walk, take the bus, hitch-hike, carpool, DO SOMETHING that will actually make a difference.


Which leads to the second part of my gas price tirade for the day. All of the above assumes, as I said, that gas prices follow some sort of realistic economic model, namely supply and demand. That's what all the oil companies would have you believe anyways, prices are going up because supply is down and demand is up. But I've thought about this for a little while, and something doesn't add up. A supply issue shouldn't produce higher prices until demand can no longer be met. So long as supply is able to meet demand then prices should stay exactly the same, or drop until an equilibrium is met. Instead prices have gone up, but realistic supply hasn't changed, and I'm fairly certain we haven't seen any large change in demand in the last few years. So, there's no real reason for gas prices to be higher than what they were 3 years ago, or even earlier.

I can still go to any gas station and fill up my tank, there is no supply shortage. A supply shortage is when I go to fill up my tank and the station says, "Sorry, we ran out." or, "You're limited to 7 gallons a week." That's a supply shortage, necessitating higher prices. Then the higher prices would decrease demand (supposedly) and equilibrium would again be met. Think about it, when was the last time there was a real gasoline supply shortage? The 70's; when oil supply was screwed up due to OPEC nations being invaded and oil fields being destroyed, coupled with government enforced price controls, and general panic among citizens that gas was going to be unavailable. But since then, there is no "real" supply problem. And the oil companies have been reporting record profits, clearly they're not hurting (though they've been claiming it).

[sigh]

I'm annoyed with the way our world works.