MY RANTINGS AND RAVINGS - FROM AN ALTERNATIVE FUELS CONSULTANT. Is U.S. gasoline expensive? Compared to what? Compared to Venezuela where it is $.04/gallon, it is very expensive. But we look pretty good compared to Turkey where it is pushing $10/gallon. The real question is found in looking at a country’s daily per person gas usage and what percentage of personal income that gas use constitutes. For example, in the U.S. we pay about $3.52/gallon. But we use about 1.25/gallons per person per day - so gas takes up about 3% of our income. But then again, we make about $140/day per person average - so maybe 3% isn’t so bad? Well, in China gas costs about $4.75/gallon and their personal daily income is only about $18. But they use only about one twentieth of a gallon per person per day, so they are only spending a little over 1% of their income on gas. Why? Because they have so many people and such developed mass transportation. On the other hand, Brazil’s gas is $6.20/gallon and their personal daily income is only $33.67. Yet they too only spend 1.5% of their income on gas. Why? They lead the pack in alternative fuels, so they don’t use much of the $6.20 gas. Since we are not as developed in mass transportation, nor are we as seemingly committed to alternative fuels as other countries, I am having a hard time figuring out what we would do in the U.S. if gas suddenly went to $10 per gallon, or if it got rationed and we were only allowed 10 gallons per family per week. Russia is currently the largest oil producer in the world, but Saudi Arabia is the largest exporter. Russia may produce more, but with a greater population, it needs more at home and has less to export. U.S. oil production is dropping at 2% a year and our imports are increasing at 5% a year, to keep up with our demand. What happens if imports become less available to the U.S., which they as China and India continue rapid economic growth which could significantly increase their demand for oil? When I combine this with the knowledge that 60% of the world’s oil reserves are in countries where political conditions are relatively unstable (which at any time may affect oil exploration and production), and the fact that most experts seem to agree that oil production either already has or will peak sometime between now and the next twenty years, I have to ask – are we really preparing ourselves for what might come? In a world where the top 10 highest profit companies include four oil companies (only two of which are U.S. based) and four banks (all of which are in China), I must say that I get a bit nervous and confused when our politicians toy with the mechanisms for expanding alternative fuels and mass transportation. After all, it does appear that with the importance of oil in the grand scheme of things, it should be like gold and cost pretty much cost the same worldwide. It just does not seem right that it should cost $400 to fill up a big 39 gallon Ford Excursion in Turkey, while only costing $130 in the U.S - and a mere $1.60 to fill up in Venezuela. The bottom line is that we need to get very serious about alternatives to oil and mass transportation. The time for political infighting is over. This is a serious problem that threatens world economy and our way of life.
Posted on: Fri, 05 Jul 2013 19:05:55 +0000
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