Relieving Gas Pains
By Jan Larson (05/01/06)
I am reluctant to toss another missive onto the ever-growing pile of gas-related commentary that has accumulated in the past few weeks, but since it seems to be on the top of almost everyone's list of talking points, I just can't help myself.
The foolishness and shallow thinking that has been offered up by politicians and pundits on the subject of gasoline prices has been astounding.
Windfall profits tax? That’s been done before and didn’t work. The definition of insanity is to do the same thing again and expect a different outcome.
Senator Shumer suggested breaking up the oil companies. First, it wouldn’t help and second, just three of the ten largest oil companies are American [1]. I doubt BP or Shell would follow the Senator’s recommendation. A better idea would be to break up government.
How about a $100 “gas tax rebate” check? Another great idea – set up a multi-million dollar bureaucracy to send people $100 checks.
Drilling in ANWR and off the coasts of Florida and California would help, but it would take years before we see the effects. Build some more refineries or nuclear plants? Same story.
Some think ethanol and hydrogen are the answers. While both could potentially replace a percentage of the nation’s petroleum consumption, those solutions are also for the future and won’t come without a cost.
Ultimately, the laws of supply and demand will determine where we get our energy. It seems certain that we will reduce dependence on petroleum in the long-term and that ethanol and hydrogen along with nuclear, solar and wind power will likely comprise a larger percentage of energy sources in the future, but that doesn’t help us today.
So, what can we do to relieve our gas pains now?
By saving just $30 per week in other areas, the cost of a 20-gallon per week “gas habit” (at $3 per gallon) can be effectively cut in half. Save $60 per week elsewhere are you’re driving for free.
Sharing a ride to work isn’t always possible and it certainly isn’t convenient, but even if you had to drive five miles to meet someone willing to share a ride instead of driving the full 25 miles to work alone, you’ll save you 100 miles per week (assuming you take turns driving). At 20 miles and $3 per gallon, that’s $15 right there.
Do you go out for lunch every day? Bring lunch from home twice per week and save another $10 to $20.
If you buy soft drinks for a buck apiece and drink three per workday, you can pocket another $15 per week in savings by drinking tap water instead.
Are you a smoker? And you’re complaining about gas prices? Complain about gas prices when you’ve given up the butts.
Ditch the expensive extra services on the cell phone. Have the maid come in every other week instead of weekly. Eliminate premium channels on your cable TV service. Cancel the subscription to that left-leaning newspaper and those unread magazines. Skip the mousse on your next haircut. Cancel the gym membership that you don’t use and go for a walk instead. Don’t tip the pool boy so much. Drink cheaper beer. There is more than enough money spent on frivolities by most families to more than make up for higher prices at the pump.
Americans today are pampered and soft. Few know real hardship. The Americans that lived through the Depression and fought World War II knew hardship. Those that think times are tough because it costs a few dollars more to drive to Starbucks need to get a grip. We think that we’re entitled to cheap gas, but we’re not going to see cheap gas anytime soon.
The pandering politicians and bloviating commentators won’t solve America’s energy problems, but the free market can and will if given some time. In the meantime, consumers can mitigate the effect of high gas prices with some simple lifestyle changes and frankly, that is the only viable short-term option. Crying like babies isn’t going to help.
[1] http://finance.yahoo.com/q/co?s=XOM
Copyright ©2006 Jan A. Larson All rights reserved.
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