Wednesday, June 4, 2008
Maybe these high gas prices are just a sign of whats to ultimately come. The world using up all of the available oil. The time will come eventually and people will need to come face to face with the situation sooner or later. Public transportation is widely available, although many people do not like taking it, me included. At this time it seems much more economical to take the train by purchasing a monthly pass at a price of less than $200. Compared to the ~$500-800 people are spending now the train makes much more sense.
A common misconception of why gas prices are high is that OPEC is witholding production of oil. This is not true they are actually producing at a maximum. It is the demand that is high with developing countries such as China with a huge population to sustain. One of the biggest factors to high gas prices is Oil speculators. They think the gas will be in shortage in the near future and therefore the prices are drived up. This is not true and they are just causing a unecessary inflation of the gas prices.
Why? because ethanol is merely displacing gas that will be used anyways. It is just delaying the inevitable shortage of gas. It offers menial mileage benefits, and it costs the country a great deal of money to produce ethanol. Meanwhile there is a shortage of corn all across the country. The money spent on production of ethanol should have been used for research and development of othe alternative fuels.