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By Aaron Gold, About.com Guide to Cars since 2004

Opinions wanted: Are higher gas prices a good thing?

Tuesday May 13, 2008

Are higher gas prices thinning out Los Angeles traffic?An article on LATimes.com claims that commute times in Los Angeles seemed to get shorter during the month of April, and speculates that the cause could be higher gas prices. Backing this up is data showing that the state's fuel consumption is dropping -- Californians bought 4.5% less fuel in January 2008 than they did in January '07.

There are a lot of people who say that higher gas prices are a good thing, because they will force Americans to buy smaller, more fuel-efficient cars and seek out public transportation. For purely selfish reasons, I have never been a vocal proponent of this idea: My job requires me to buy gasoline, and quite a bit of it. I drive 500 miles per week on average, often in some rather thirsty cars. But I can't argue with the logic. I think that most Americans buy vehicles that are way larger than what they need. And lest you think I'm just pointing fingers, I too am part of the problem: Our family car is an older mid-size station wagon, even though I know from experience that there are plenty of compact cars that would provide all the space we need -- plus better crash protection -- while comsuming 10 to 20% less fuel.

So what do you think? Could higher gas prices be a good thing? If $6/gallon is what it would take to get people to give up their SUVs, pickups and full-size cars and start taking the bus or the train, would that be better for America? Or are high gas prices simply inflicting unnecessary pain on the citizens of this country in order to enrich oil company shareholders? Click the "comments" link below and have your say. -- Aaron Gold

Related: Top ten fuel-saving tips

Photo: David McNew/Getty Images

Comments
May 13, 2008 at 1:28 am
(1) tayshaun22 says:

I’ll agree that maybe $1.00 gas was bad for America, it allowed people to make ridiculous choices about what cars to buy, and encouraged fuel wasting, but you can’t tell me that $4.00 plus per gallon is a good thing. At that point it begins to become painfully obvious what a NECESSITY gas and diesel are, from your daily transportation to shipping the products we all need to survive. Having people make better choices about their transportation needs is one thing, having no choices at all is another. Hopefully the pendulum will even out and we’ll end up with the $2-$3 dollar gas our economy can support. Oh, and public transportation -lol ,other than in the largest urban areas, its simply not an option.

May 13, 2008 at 3:47 am
(2) Jerry says:

The problem in trying to force American people to buy smaller gas efficient vehilces is that most of them can’t afford to drive what they are already driving. You take a single mother making $8 to $10 an hour, what can she afford to buy, she can’t even buy gas at $4.00 a gallon. There are millions in this senerio. Just check around the midwest and you will discover this is a fact!

May 13, 2008 at 6:51 am
(3) Marc says:

It hurts, but if high gas will get people out of SUVs and trucks, and speed our transition from fossil fuels, then $4.00 gas is a good thing.

May 13, 2008 at 7:22 am
(4) Al says:

“Necessity is the mother of invention”. Hear this before? Who are any of us to tell anyone what they should drive and when. Necessity dictates, in most cases, what people drive. Rising gas prices are NOT a good thing. Most people buy what they need and, because the oil companies are so greedy, we, as people, should adjust for them? It’s ridiculous! I drive a Honda Ridgeline because it suits me in many ways…work, play and family. I pay, on average, $40-$45/wk in gas to fill up. Now, that may be on the low side but I also live on the East coast. To me, anyone who has to pay higher than that, it is the oil companies and the governments fault! It is totally unnecessary when oil is aplenty.

May 13, 2008 at 7:41 am
(5) Robert Jones says:

We are only in this mess because the environmental wacko’s have put a stop to our countries drilling for oil some twenty years ago. There is no shortage of oil anywhere in the world, all you have to do is continue to drill for it. Our economy depends on oil and looking for any alternative is going to take a long time to accomplish. Even so by us conserving or coming up with alternatives does not guarantee that other countries in the world will follow suit.

May 13, 2008 at 8:14 am
(6) Dave says:

I am no gas saving saint for sure, but, as I drove the I-95 from Canada to Florida in my ES350 this year (see what I mean), I couldn’t help notice the number of kids driving nearly empty, huge, gas guzzling monsters down the road beside me. Canada’s historically, slightly higher gas prices has started a slow (really slow) shift to more efficient vehicles in this country, as it has already in Europe, and as it will also in the US.

Having said that, fuel is consumed in every segment of our national economies; therefore, beyond a certain price, the effects of price increases can only fuel inflation, which imposes practical limits to its real profitability to the producers and distributers. Excessive increases devalue the currencies of consuming nations providing little real benefit to the producers, long term, as they must paid in devaluing currencies.

Pity those on fixed incomes who suffer most in inflationary times and those young people who will find themselves with expensive driveway ornaments, mute evidence of a passing era. Sorry, I cannot pity giant corporations who cannot adjust to changing conditions. Cars are available today which will be affordable for this next period in our history – get one when and if you can – it will probably not be in your best interest to do otherwise. My Lexus should be good for the next 7 years – hopefully.

May 13, 2008 at 8:39 am
(7) Rich Gebhardt says:

If, inflation is considered, the price of gas
back in 1960 is more expensive than today at
3.00 dollars a gallon. So, actually paying
3.50 a gallon in 2008 is not a bad price.
Compare the wages in 1960 to 2008 and it will come out about the same, like everything
else. ( food now may be a different story)

May 13, 2008 at 10:10 am
(8) carol says:

While I’m not happy with the gas price increases, it is forcing Americans to look at the way the live (and drive). Many people live in houses that are too big for them, and drive cars, the size of which, are too large. Maybe we should all be getting back to basics, and only buy what (and what size) we really need.

May 13, 2008 at 10:16 am
(9) Shaun says:

I’m glad someone finally mentioned the inflation factor, I was wondering if anyone would think about that. That being said, I think that we Americans are having such a hard time getting used to high gas prices because we were so spoiled there for a while in the late ninety’s paying a buck a gallon. Europe’s gas prices have been much higher than ours for a much longer period of time than what we have experienced to date, and they adapted buy buying smaller, more fuel efficient gas and diesel vehicles and they get along just fine.

I don’t know why American’s are addicted to their ridiculously huge SUV’s, but they are. These things are absolutely horrible for the environment, they clog the road ways and you can’t see around them, and they are extremely dangerous when in an accident with a smaller vehicle.

Alternative fuel sources are the answer, not drilling for more oil; the earth’s fossil fuel source is limited whether people believe it or not…it is just a fact. If higher gas prices will make people buy smaller, more fuel efficient vehicles, and push for alternative fuels, than I am all for it. And yes, I do drive too. I log 3000 miles a month sometimes, and I want alternative fuel options available to me.

May 13, 2008 at 10:42 am
(10) Joe midwest says:

You guys are only looking at the commuting aspect of cars. Here in the midwest most of the hobbies include the need for hauling a trailer of some sort, Camping,fishing,atving,snowmobiling. You just cant do this in a prius or escape hybrid. So based on your opinions we should move into small apartments in the city and not participate in these outdoor activites that require us to leave the city hauling something, maybe we should sit on the couch and watch more tv and make obesity the number 1 killer here in the U.S. instead. Or the best answer is we should buy two vehicles one for commutes and another one that can actually tow our equipment cause the average family can afford to have 3 cars one for mom to go to work,one for dad to go to work and the gas guzzler they pay insurance and maintence on for the 4-5 weekend trips they make to the woods or lake for a family getaway. Get real some people would rather spend a couple hundred bucks a year in gas and have to drive that ineffecint suv than own and maintain 3 cars.

May 13, 2008 at 11:12 am
(11) Jim says:

Are high gas prices a good thing? Good and bad are irrelivant. We use more gas when it is cheap, less when it is expensive. Do we want to use more or less gas? Define the objective, people will adjust.

May 13, 2008 at 11:16 am
(12) Tom says:

If you accept the arguement that the best thing an individual can do to fight the war on terrorism is to stop sending our dollars to oversees governments that sponsor terrorism, then tax gasoline even more. Earmark the tax dollars for a huge scientific push to develope alternative energy sources, similiar to the push to put a man on the moon. A strong USA would be one that didn’t depend on foreign oil for it’s energy fix.

If you think there’s plenty of oil, you’re delusional. Ask the oil companies and oil producing countries. They’re all worried about what they’re going to do when the wells run dry.

May 13, 2008 at 11:20 am
(13) Dave Campbell says:

Gasoline is still a bargain; for less than $4.00 you and your passengers plus a two ton vehicle can go 20 miles. Lots of money is wasted on $4.00 coffee that is just going to go into the toilet.

We have needed a reality check for some time, and maybe this is the catalyst to get us to be more realistic in our expectations and maybe share limited resources.

May 13, 2008 at 11:34 am
(14) Ross says:

I love to hear people speak of the high prices of fuel in Europe and Canada. Has anyone ever really looked at why their fuel prices are so high. The fuel is taxed heavily and they enjoy the free (sort of) health care that those taxes pay for. There is no comparison.

I think high fuel prices are good. They are making people change their ways. Sorry to say, but we Americans will not change unless it hurts. I still think there should be a $1 or 2 tax on gasoline. Use that tax to lower the price of diesel which will ease food costs and further alternative energy research. I own an older mid-sized SUV and paying a buck or two more a gallon will not make me run out and get a new vehicle. I’m still saving money by driving my older, already depreciated vehicle. Every mile further in the vehicle save me money. When it dies, then I will look into a smaller wagon that will still meet my needs.

On the same note, the government should lock out the oil companies from any money funding alternative energy. They already do their best to crush alternative research and buy the patents for anything that might be a threat to their cash cow. We need to eliminate the conflict of interest to make any oil alternative happen.

May 13, 2008 at 11:36 am
(15) Bill says:

It’s called “supply and demand”. Yea, I know it’s highly regulated, heavily taxed, and artificially controlled, but under it all, gas costs what it costs because people are willing to pay it. All we’re doing now is finding out how willing.

People keep looking for someone to blame. “It’s the goverment’s fault.” “It’s the oil company’s fault.” No, it’s OUR fault. We’ve allowed ourselves to become addicted to petrolium, and additionals are tough to quit.

“Doc, it hurst when I do this.” “Well then stop doing that!”

May 13, 2008 at 11:52 am
(16) Houston says:

Many European countries pay $6 a gallon or more and they’re doing fine. Why? Because the got used to it over time. We should raise the gas tax 20 cents a year for the next 20 years. Then we could get used to it slowly but it would also influence our car buying habits, our driving habits, and promote the development of new cars and alternative transportion choices since everyone would know what the future holds. There’s no quick fix, but let’s at least start on the right track.

May 13, 2008 at 12:28 pm
(17) Steve says:

Our current high gasoline prices demonstrate a basic economic truth: many things that are good for the country as a whole can be very negative or even devastating for individuals.

High gas prices will cause America to convert to more efficient transportation methods and to develop energy alternatives. High prices for oil will eventually help us stop giving billions of our hard earned dollars to people who hate us and who want to end our way of life. The law of supply and demand will see to that, but at what cost?

The transition to these new, more efficient types of transportation and energy will be excruciatingly painful for many people. A lot of folks are driving pickups and SUV’s that they can’t get rid of because trade-in values of these large vehicles have plummeted. And many, perhaps most, of the drivers of these vehicles now owe more on them than they are worth. So, many people are in the position of having to drive a vehicle they can’t afford to put gas in because they can’t afford to buy a replacement that is more fuel efficient. That is a personal and family financial disaster in the making.

With the Presidential election coming up, we will be hearing a lot of talk from the candidates on the subject of energy and what (if anything) our government should do about it. Should we just collectively take our medicine, no matter how painful and let the fundamentals of economics move us into busses, trains and tiny cars? Should we try to help the individuals who, because of their own foolish car-buying choices, now find themselves in an absolutely untenable financial position?

In the long run, we will be better off because of this run-up in gas prices. The prices will force us to use energy more efficiently. But, many people will be hurt along the way toward greater energy efficiency. Jobs will be lost, lifestyles will change and not necessarily for the better. Many will not make the transition from the era of cheap oil without permanent personal financial damage.

So what’s the solution? There is no magic pill that is going to get us out of this. Cheap oil helped us dig this hole for ourselves over the past 50 years. It may take another 50 years for expensive oil to help us find the way out.

May 13, 2008 at 1:20 pm
(18) Chuck Manson says:

I for one cannot see how higher energy prices could possibly benefit anyone. I don’t think we should add taxes to persuade people to buy smaller cars and I don’t think penalizing oil companies with higher taxes will create an “altenative” solution any quicker.

Higher oil prices benefit stock holders of domestic companies and despots of oil rich countries. I’m personally benefiting since I’m a stock holder but if the wind changes I’ll benefit by investing in other segments.

Higher energy prices are causing food shortages, inflation and family economic distress.

Not much can be done but whine, bitch and moan on sites like this one. There’s really no short term remedy and even long term looks dismal.

C

May 13, 2008 at 1:46 pm
(19) Nick in Kansas says:

Those who say there is plenty of oil are missing the point. Our economy and way of life are threatened not when oil runs out but when oil production peaks. Supply and demand have been rising in tandem ever since oil was first drilled 150 years ago in Pennsylvania. We will soon face the prospect of stagnant and then declining oil production worldwide.

The “peak oil” phenomenon occurred in the United States in 1970, and in every year since then we have extracted less oil (in the U.S.) than the year before which has led to ever increasing oil imports. This is not due to political opposition to new drilling, but to geologic reality. When an oil field is first drilled, the oil comes gushing out and then an ever increasing number of wells must be drilled to produce a dwindling number of barrels per day. Even if we were to drill in Alaska’s Alpine field, it would barely make a dent in worldwide supply. The Alpine field contains 0.5-1.0 billion barrels compared to 13 billion barrels in the already drilled Prudhoe Bay field in Alaska, 20 billion barrels in Russsia’s Samotlor field, and 71 billion barrels in Saudi Arabia’s Ghawar field. More drilling in Alaska is trivial, and barely postpones our day of reckoning.

When oil production peaks worldwide, we will be faced the prospect of increasing demand for an ever decreasing supply of energy. Any econ 101 student can tell you that spells economic disaster, and it isn’t just the increased cost of traveling and shipping things. Agriculture yields skyrocketed in the 20th century due to nitrogen fertilizers derived from natural gas and synthetic herbicides and pesticides derived from oil. Food prices (as we have recently seen) will continue to skyrocket as the world deals with dwindling energy supplies.

The prospect of inadequate oil supplies isn’t just coming from environmentalists any more. Last week Goldman Sachs put out a new energy prospectus predicting oil prices of $200 a barrel within the next 6-24 months and gas prices of $5.60 a gallon. (In 2005 Goldman predicted oil prices as high as $105 a barrel by 2007. They were dead on.) All of this means that the current spike in energy prices is a good thing if it encourages us to become less reliant on fossil fuels. The consequences of continuing to use oil with oblivion will be disastrous.

May 13, 2008 at 2:40 pm
(20) Skip Ryan says:

Here’s a funny thought- who cares what the Japanese or British pay for a litre of petrol? We don’t live there, neither do we enjoy (or suffer from) their form of government, benefits (YMMV) or not.

How much we Americans conserve gasoline or diesel at this point may be moot; the Chinese and Indians have more than enough thirst to pick up where we leave off. Sure, we can buy smaller cars and save a few gallons a week- a Prius hybrid can pay for itself in a mere 10 to 12 years or so- and then we can all feel so smug about ourselves.

Or, we can actually do a few simple, real-world things that actually make sense. First off, slow down. It is, in fact, legal to be the last guy to the next red light. Continuing that thread, speed limit signs are not suggestions. I know that this is blasephemy, but were we to just drive only as fast as we needed to, as opposed to as fast as we can get away with, we would all suddenly discover our cars becoming more fuel-efficient.

Quit blaming Washington and the oil companies. First of all, we really do not want DC setting prices. Nixon tried controlling prices in ‘73. There’s an example to follow. Gas tax holliday? Genious. I don’t know about you but the Federally “maintained” roads here are already just a few days away from being an off-road park. What could be wrong with less maintenance funds?

There is no small problem that the government cannot fail to make bigger. If you reaaly think that our government can fix this, or even should, you probably ought not to be driving in the first place. It’s an intelligence issue.

Per the oil companies, I hate to be the one to break this to you but businesses, regardless of their stock-in-trade, exist to make money. Our entire way of life is predicated upon that concept. The other way is called communism. That failed. Except for North Korea that is, and by all accounts things are swinging there.

All the other “communist” countries are becoming more capitalistic every day. That’s why party chiefs in the, ahem, “Peoples” Republic of China drive big, gas hungry Mercedes-Benzes.

Here’s something. When you drive around town and see gas station “A” with the price-per-gallon 10 cents (or more) greater than that of a station across the street, stop say something rude (but be clever) to the bubble-head buying fuel there. I see it all the time. This is the only real way that We The People can actually effect gas prices- if we use our heads and buy the least expensive gas around. And slow down.

May 13, 2008 at 3:22 pm
(21) Ed (Oregon) says:

Are higher food prices good for America? You would think so using the logic of the weak-minded. We would all eat less and theoretically, lose weight and be healthier! Higher gas prices force everything to go up. You don’t ship produce by magic. It takes fuel to move the trucks and trains that move all of our products. Are you happy spending more for grain, because some dimwits are pushing using farmland to produce bio-fuel and not food for us? Talk about short sightedness…… You really want to help America? Get the governments blood sucking hands out of our lives…If there is a real need, the private sector will invent it, manufacture it and sell it, with our big daddy mandating it. As was mentioned earlier, we have huge resivores of fuel in our own country. However, we have the leftist, wacko’s fighting to keep us from tapping into it. Bottom line is, we have fuel, its just that the left wants you to feel pain. That way they can “help you” You know, our population is growing, that also may effect our increased volume of usage.

May 13, 2008 at 3:23 pm
(22) Kevin in Bellingham WA says:

Ultimately, higher oil prices will turn out to be a good thing. It is just what we here in the U.S. need to provide a kick in the pants. As prices continue to rise, it is spurring the a furious amount of development of alternative fuel sources and increased efficiency. I’ve been sitting back watching the effects and they are wide ranging and very surprising in many ways as the marketplace is rapidly adjusting. Here are some observations…

The alternative fuel market has exploded in growth over the past several years. 10 years ago, you saw a bunch of hippies and odd engineering wacko typse making biodiesel in their garage. Now, you have biodiesel plants producing ever rising quantities. This has created an entire industry in a short few years and spurred incredibly advances in production efficiency. One effect that is not really surprising but people may not be aware of is that the U.S. is quickly becoming the Saudi Arabia of biodiesel. Our low cost of biodiesel as compared to Europe, partially due to subsidies and partially because we have feedstocks available and rising production capacity, is spurring a huge export of Biodiesel from the U.S. to Europe, wehre it is cheaper. Some European countries now require a Biodiesel/Diesel blend in all diesel fuel sold causing a huge built in demand. We are actually driving Euro Biodiesel producers out of business. The added demand is driving the price of domestic Bio thru the roof as feedstock prices rise, but is also spurring a huge influx of developmental funds into alternative cheaper, higher volume feedstock sources such as oil from Algae (probably the future of biofuels) as well as biodiesel made with wood ethanol instead of methanol from natural gas.

Higher oil feedstock prices has created an entirely new market that didn’t even exist several years ago…waste oil collection and resales. Where as before restaurants paid somebody to take their used oil away, now they are not only getting paid for it in many areas, but the oil is now a developing commodity with a market price. Your mom and pop restaurant owner is changing from a net consumer to consumer and supplier, offsetting their rising oil costs and helping keep prices level. The people and companies who collect the oil all of a sudden find themselves with a much more valuable commodity, creating huge competition to get the supplies (there is even one case of somebody who was arrested and prosecuted for STEALING used restaurant oil…Google it).

Another effect everybody is probably noticing is the effect on advertising and marketing. The emphasis has changed. Every auto commercial you see and hear now touts fuel efficiency. Drive by the auto dealers and all the cars on the front rows and the signs are all about fuel efficient cars. The big lifted V-10 Gas pickups are now kept in the back.

Obviously, auto manufacturers are scrambling to get efficient cars into the U.S. Diesel vehicles are all of a sudden a hot, highly requested commodity because currently they are still the most efficient way to drive. My neighbors Prius gets 40 MPG combined, my recently purchased used Golf TDi gets 52 combined, he paid $20K more than I did.

Diesels are wierd. The more horsepower and performance mods you do to them (up to a certain point obviously) the MORE efficient they are and the better their mileage is. I know guys who have doubled their TDi’s horsepower and torque and are getting far HIGHER mileage.Diesel performance manufacturers who have for years been on the fringe are all of a sudden hard pressed to keep up since the upgrades can be justified. You get more horsepower, more fun AND better mileage from power upgrades in a diesel!?! Hell, sign me up! On the flip side, I’d expect to see a HUGE fallout in the gas car performance companies as demand for their product falls precipitously, partially because the disposable income is evaporating and partially because increased gasoline performance nearly always comes with a decrease in efficiency (I get more performance, more fun, but worse gas mileage…uh, thanks but no thanks).

Auto development is obvious, but what isn’t so obvious is how excited and enthusiastic people are over alternatives. Diesel hybrids are being developed that will eventually arrive driving efficiency higher. Fully electric vehicles are all of a sudden in the news again. Direct injection gas cars are coming. In certain limited markets, you can’t just talk about a hydrogen vehicle…you can actually BUY one from Honda (who will have several diesel cars out next year or so). There is a car in the news that runs on compressed air. People are EXCITED about these things and WANT to buy them. 10 years ago, you probably couldn’t sell any of these in any numbers…now the average person would consider buying one off the showroom floor. That is a huge shift in public perception.

Higher fuel prices are having a huge effect on used vehicle sales as that perception is changing. CNG and LP vehicles…all the used ones are all of a sudden being snatched up and exported to Utah where the fuel is subsidized and costs 0.70 a gallon, creating rising prices for used CNG vehicles. It has always been pretty cheap there but now there is incentive for people to go out and find one. VW TDi’s are skyrocketing in prices in our area. 4 years ago, you couldn’t give them away, now they are fetching premium prices AND talking to the local VW dealer, they get daily requests for used ones and can’t fill the demand. Older diesel pickups and vans are going up in price as people get out of gas and switch over. This is also creating big demand in the diesel parts market as people grab older diesel vehicles and fix them up. In our area, you can’t give away a used Gas Cargo Van and you can’t FIND a used Diesel Cargo Van. They literally don’t exist as they all got grabbed by companies. The local diesel repair shop is booked solid. I brought one in from another state, made several thousand dollars reselling it (much to my happiness), all of a sudden I’m looking at the State site to see what it takes to become a used car dealer on a small scale.

Point is, the market is working EXACTLY as it should. Supply and demand. Ultimately, what will save the U.S. is our technology and ingenuity coupled with the fact there are a heck of a lot of creative back yard mechanics out there who are pissed off and are looking for a better mobile mouse trap. They’ll invent it and then people will buy it.

May 13, 2008 at 4:56 pm
(23) Walt says:

Good? Bad? How about unavoidable?

We’re consuming the cheapest oil that’s easiest to get, while demand goes up. In this situation higher prices are unavoidable. We will adapt somehow, by driving smaller vehicles, driving less if we can, finding alternate sources of energy.

We’ll spend more of our money directly on transportation, and spend more on everything else that moves (food, furniture, you name it). Less will be left for housing, retirement, healthcare, latte drinks, beer, toys and all. Unless we find the oil one deranged commentator insists is everywhere, or make Hydrogen work, or a miracle happens, our standard of living will decline.

May 13, 2008 at 5:53 pm
(24) Gary says:

Well,some may think that higher gas prices may be a good thing. But no one is thinking about the miminmum wage people, that can not afford a newer more gas efficient car. When oil goes up every hting else has to follow.(ie food, clothing, medicne(not that medicine needs any more help raising. I believe that, we the United States, are fast becoming a third world country. This Country already has alot of People living on the streets, even throw no one wants to admit it.

May 13, 2008 at 5:57 pm
(25) Scooter says:

My belief here won’t be shared by all (or even most) but….

Since when has driving a car become a right all americans have?

CARS COST MONEY! That’s not news.

The opportunity to own and drive a car is a privilege, not a right. Many people drive around without insurance, putting gas on credit cards they can’t pay off. That’s a problem that will cause lingering effects as well. Move closer to your job, ride mass transit, etc.

Perhaps these higher gas prices will start to drive this point home a little further.

May 13, 2008 at 6:31 pm
(26) williamd says:

I admit that if prices take cars off the road, especially older models, then I think GOOD! Several comments mention ‘min wage people’ … I know several and they shun buses and trolleys even when convient. Too bad for them.

A high school friend’s dad had a service station in the 50s (when they offered service!!). Applying inflation to those 30c prices we should be near $20 now!

And, yes we have the oil … offshore and ANWA. The happiest caribou in Alaska are along the pipeline as it offers better, more open area for forage! Drill ANWA and help the animals! Plus, gives my buddies a better place to hunt!

May 13, 2008 at 8:34 pm
(27) Robert says:

Anybody who thinks higher gas prices are good is delusional. Why on Earth would higher prices be good for us? You can’t compare the USA’s prices of gas to that of European cities b/c Europeans benefit from very nice and effective public transportation which 99.5% of the USA does not. There are NO alternative ways for me to go to work. I’m not walking, there’s no bus here, or train, and I won’t be riding my bike in my suit 10 miles to work. TOTALLY different from Europe. I would benefit very much from $1 gasoline and anybody that doesn’t mind the high prices should move to Canada…..we don’t need your type here encouraging the oil companies to raise prices more. I bet you all who are suggesting that high gas prices are good for the USA are the same democrats who also believe that the US Oil companies should be hit with a windfall profit tax. Perhaps you should seriously consider the negative effects that high gasoline prices have on our economy and our way of life before you go and spread your crazy ideas.

May 13, 2008 at 9:03 pm
(28) jimmy says:

Aaron, after reading all these posts, I think the question is ill phrased. Bottom line – if you can afford it, a higher price is either a good thing or irrelevant. Regardless of your stand on a green earth. My biggest problem, personally, is that we’re paying prices closer to those paid in the rest of the world but it’s all going to Exon, not back to the government in taxes. If it’s all a supply and demand thing, the world over, gas should be ten bucks a gallon in Europe by now. (Is it? I haven’t heard of it being a problem over there) It seems obvious to me that either we are having a shortage just in this country from lack of refineries (in which case everybody quit bitching because we all voted in the spineless ones who are scared to ok new refineries) or it’s because the big oil companies are gouging us. Of course $150 a barrel plays into it I know.

May 13, 2008 at 9:11 pm
(29) Aaron Gold - Cars Guide says:

Jimmy — Fuel in Europe is now in the $8-10/gallon range. — Aaron

May 13, 2008 at 9:32 pm
(30) Emir Santana says:

The biggest problem with raising gas prices, is that the price of everything else is currently dependent on gas prices. From the cost of heating metals, glass and plastics, to the cost of transporting and shipping all products. Not to mention the huge increases in travel expenses both for flight and ground transportation. The problem lies with the “Fat Cats” they layoff workers, they raise prices, then start wondering why every year there are less people buying and why oh why is the economy going into a recession? Duh there’s less people with money out there because you keep downsizing every company. And in turn what do they do? Downsize some more. It’s not the government that needs to stimulate the economy. It’s the companies that need to do it. Stop Downsizing and start hiring, More people with money equalls more consumers in the market.

The price of everything goes up because one “Oil Fat Cat” decides they want more money. Well guess what, the value of that extra dollar you just made goes down the more you try and do that. The oil companies are Chasing their own tails and everything is suffering because of it.

DJ Emir Mixtapes

May 13, 2008 at 10:51 pm
(31) Chuck Manson says:

Emir,

Corporations do not exist for the benefit of the employees. They exist and function for the benefit of the shareholders.

Your suggestion that companies hire more people just isn’t workable. I.E. If you owned a DJ business and just hired two more people just to stimulate the economy, your personal economy would suffer unless those two people were creative and brought you new biz. But, if they’re just window dressing or office help, you’re pissin your hiphopbucks down the drain dude.

BTW-Our unemployment rate is 4.4%. That’s considered 100% employed in the labor markets. There will always be about 4%-4.5% people moving from job to job.

PS Interesting website.

C

May 13, 2008 at 11:22 pm
(32) Robert H. says:

The intelligence of people replying to comments astounds me . There are no ignorant flamers nor those that seem to be promoting that their way of thinking is THE only acceptable thought process .
I wish to offer my thoughts and observations if anybody is willing read :
Todays generation in the USA knows nothing about conserving natural resources nor discovering new ways to use those available .

I have read about :1) fossil fuels 2) gas companies greed 3) government intervention 4) lifestyles .

I offer that in order to maintain lifestyles according to that which we have become accustomed to we must accept the fact that our greed rivals that of oil companies and that of the government through taxes , We must agree to work at home jobs , with no certain working hours , nobody to answer to about coffee breaks , and E-mail our production to our employers , Plus check our banking accounts online to see that we have received compensation .
No fuel consumed , no transportation required , no auto payments .
Sounds great at first glance , however one generation from now it will be the way of life: no going out to shop , no meeting friends at the coffee shop , no being present at church , no need to mow as nobody will see , no need to dress and no need to purchase jewelery as you will not leave your house for anybody to see.
Sounds good HUH ?
Assess your alternatives , consider your priorties , live accordingly and quit trying to assume others should be living up to your expectations .
RH

May 13, 2008 at 11:22 pm
(33) Jim B says:

$4.00/ gal. gas is wonderful, just like global warming.

Piece.

May 13, 2008 at 11:43 pm
(34) Aaron Gold - Cars Guide says:

Chuck — Years ago I did a report on the Japanese method of management. One point that stuck out was that if you asked an American manager the purpose of business, he would say it was to make money. Ask his Japanese counterpart, and he would say it was to provide a good place to work and make good things. Imagine what our country would be like if American businesses took that attitude.

Aaron

May 13, 2008 at 11:47 pm
(35) Aaron Gold - Cars Guide says:

Robert H, I agree with what you said about the quality of comments — a lot of well-thought-out and intelligent discourse. Which just goes to show what I’ve always believed — About.com readers are the smartest, best looking, and sweetest-smelling people on the Internet! :) — Aaron

May 14, 2008 at 8:47 am
(36) Mike in Minn says:

And darn it; people like us! Although it’s 7:22AM by my clock and none of the above applies.

Regarding the discussion; High prices help the environment and possibly future competitiveness in green industry. They may also help to create a workable solution to oil; at least if we start to examine our use of fossil fuels in the 80% that are non-automotive uses. To be free of oil would also help us politically as well since we would be free of the despotic, oil rich regimes that we enrich only to see them destablize the world. Conversely high prices hurt our individual and collective economic situations right now as we are still only getting the same service for three times as much money. As some have pointed out, that is especially tough on those whose situations were already tight. So it really seems to cut both ways. Since we can’t do much about high prices, we may as well look at the positive. So here’s to hoping for a better future!

May 14, 2008 at 9:06 am
(37) Marc says:

Hey Al, people don’t buy what they need. A Honda minivan would provide more utility than your Ridgeline, but oh no, American’s can’t be seen in a minivan. That’d be like giving up. Don’t tell me anyone needs a Hummer or Escalade. People buy vehicles to satisfy their own self-image.

May 14, 2008 at 9:26 am
(38) M. Mcclure says:

I drive a full size pickup out of necessity, but if it gets people off the road at peak hours who are going nowhere, I guess it may be a good thing. However, the price of diesel is totally out of line, and this is a BAD thing. I hate that word INTERVENTION, but the government should have stepped months ago on these prices. If the truckers went on strike, the government would intervene then. Gas prices hurt, but diesel prices are going to put us in the hospital as a nation.

May 14, 2008 at 10:06 am
(39) kyle says:

IT IS WONDERFUL! or IS IT? Yes I get to sit back and laugh at all those SUV fools that have along commute because they decided to move further out so they could purchase a McMansion built on former farmland. HA! THAT’s KARMA.
HOWEVER, why are we paying higher gas prices? Is it the war? Is it global warming? Is it greed? It is because oil reserves are low? Yes I enjoy mocking those who created a lifestyle presumably based on a false sense of entitlement but what really concerns me is that the reasons I think gas prices should be high is not the reason it actually is. (I do have empathy for truckers)

May 14, 2008 at 11:15 am
(40) garsha says:

We in the USA are all entitled! We as a people feel we deserve the biggest and best of everything out there. I have a rule to live by, 1)live less than 10mi from work 2)walk to anything that is less than 2mi away. 3)don’t use plastic bags (use cloth reusable bags) 3)before you buy it make sure you know what responsibility comes with it. Gas prices in this country have always been much lower than anywhere else in the world but forcing the prices up will not solve the problem as we have some many people who will always feel entitled.

May 14, 2008 at 12:11 pm
(41) Chuck Manson says:

Aaron,

Kum Bye Ya anecdotal story but has no relevence to reality. I’m sure there are some Japanese managers who might utter such comments but it doesn’t alter the fact that the company is owned by shareholders and exists to produce a return on investment. It comes as no surprise that an employee thinks the company exists for the benefit of himself and his customers.

BTW-I’m sure there are many American managers who might utter the same nonsense if you were to look in the right places. But working backwards from a pre-determined conclusion you found the answer you were looking for ;op

C

May 14, 2008 at 3:35 pm
(42) Marc says:

Robert:

High gas prices make alternative fuel and power technologies viable, so we can get off of oil altogether. It has nothing to do with Democrats or anyone else.

May 14, 2008 at 5:53 pm
(43) Dingbat says:

Bring it on. The government should impose a $3 tax per gallon, and use the money to build this country and start paying down our debt. This is exactly what we need.

May 14, 2008 at 6:01 pm
(44) Skip Ryan says:

It is, at best, unwise to compare Japanese business practices to those of the US. At the risk of sounding politically incorrect (but truthfull), the Japanese have a fundamentally different approach to life, the universe and everything than we do. I am not saying that one is better than the other, per se, but ours is a very different world than theirs.

Two things provide very telling examples of what I mean: Once a Japanese company hires a person, that person is an employee for life. If that person is a total *baka*, they are, over time, stripped of all responsibilities and obligations. Nevertheless, they still report for work- on time- will spend their day in an empty office, and then go home. The loose translation for these folks is “salarymen.” It also translates as “New York City Public School Teacher.”

Another good example of the difference betwen US and Nippon involves a Japan Air 747 that crashed into Mt. Fuji a few years back. Short story long, a maintence error caused the problem- a pressurized bulkhead blew out, the plane lost control, and it eventually crashed (it was a very long “eventually” for those on board). Anyway, whereas this would have cost any American, hell any western, company *billions* had this happened almost anywhere else in the world, the presidents of Boeing and the airline paid token sums to the victim’s families, apologized, and that was that. A maintenance supervisor committed suicide as well.
The airline lost more in insurance costs than they did in the token that they paid out, such is the power of an apology in Japan.
Conversely, American business execs are told to NEVER apologize, as that means an admission of guilt/fault, which will cost more in court.

Now to other short sightedness:
“Fat Cats” who just apparently raise prices and lay off workers for the fun of it. The folks actually know more about business and capitalism than most of us do. They know who buys their products, be it widgets, sprockets or go-juice. They also know that the unemployed cannot afford to buy things.
“Government intrusion”
Reagan said that there is no small problem that government can’t make bigger. Anybody here care to take up that arguement? Seriously, does ANYBODY here actually believe that our government can make anything better? Right now the people of Pennsylvania have a Senator who wants to involve himself in that cockamamie “spygate” thing. It was a (soon-to-be-ex-) Senator from Detroit who cast the deciding vote on the last CAFE increase because her car’s dasboard instant MPG readout led her to believe that we were “pretty close already.”

Seriously, consider the judgement of these people, and ask if they have the wisdom to become involved in the pricing of any commodity.

Ours is a capitalist society. Part and parcel of that is that the market, for the most part, decides what things cost, in that the sellers price things based upon what they think they can get away with charging/gouging us for something. Where I live the disparity of gas prices from one station to the next is amazing, even amongst the same brand. What amazes me is the folks who don’t seem to notice how much less the could be paying across the street.

In the end, and perhaps back on point, high(er) prices are not a good thing, as the higher costs do not exist in a vacuum. The rising fuel costs are causing the costs of everything else to rise as well.

Maybe the War should have been over cheap oil after all. On the other hand, wouldn’t have mattered if it had been, as we haven’t the refinery capacity. That’s the problem with that belief and the cost of a gallon of chateau dino. It doesn’t matter how much raw product one has if you cannot turn into what you use it use it for. It’s kinda like pretending a forest is your house; without a lumber mill, all you have is a dream and bunch of pretty trees.

May 14, 2008 at 6:36 pm
(45) Brent says:

What about people like myself, that need a to drive a truck to work, we have a need to haul equipment or materials to the job site. My place of work is constantly changing. I cant see trying to get ladders, tools, or lumber on the bus. Ive made a living with my hands for the past 30 years, so the thought of going back to school and starting over isnt real practical. Also the talk of prices in Europe is like comparing apples to oranges, you could drive from one country to another in a matter of hours, heck you can spend days just traveling across the state of Texas. I know there is no simple answer, but things are very different from big cities to the middle of our Country.

May 15, 2008 at 1:01 am
(46) ohevshalomel says:

The only thing that’s getting more aggravating than rising gas prices is the compulsion that people have to complain about and discuss it. Go ahead and curse the oil companies–the very entities that provide that precious liquid gem to you in the first place. Why do we try so hard in this country to circumvent the very economic principles which once made America so great and prosperous? We fought the original oil men and their “greed” that revolutionized our everday lives, and now that some of the philosophical descendants of those oil men have invested billions of dollars in attempting to continue to provide us with the standard of living to which we’ve grown accustomed, we cry that what they receive in repayment and profit is too much, that somehow we “deserve” cheap gasoline.

While the oil companies are lambasted in the media and public discussion, three factors that contribute even more to the price of gas are ignored: the federal government, OPEC and consumption. Without the involvement of the government, either by measures that hurt (regulation and taxation) or help (pork legislation and other compensation) oil companies, a gasoline supplier would be forced to survive only on the merit of its product and the demand for it. Corporate failures would not be protracted, nor would success be penalized. This would lead to a much more even and rational pricing of gas (without the added burden of taxation to the consumer).

OPEC was originally formed in part to ensure that worldwide gas prices would be stable overall. Over the years, the actions of OPEC have led to the exact opposite. The tightfisted cartel which so closely controls the price of oil exported from its member nations has led to increased riches, but for whom? In the long term, it has certainly not benefitted those who work the most actively at providing oil. This choking rein on such a large supply of oil puts refineries in an artificially arrested position when it comes to bartering for the purchase of oil. Yet OPEC is largely ignored when it comes to pointing the finger in this gas “crisis”.

It is a simple and sad facet of human nature to desire to blame all but oneself for the problems that one encounters in life. Such is the case with Americans’ abhorrence of gas prices. Most businessmen with half a brain understand that if the price isn’t right, you’ve got to change it or risk no sale at all. Apparently, the price is still right for enough American drivers that oil companies don’t need to lower prices.

I’m not advocating self-restraint per se. Neither the government nor anyone else has the right to enforce a lifestyle of “going back to basics” or “just the necessities” on anyone. This country became great because the unfettered ingenuity of some was recognized and appreciated as a blessing to us all, and a lifestyle of increasing luxury became possible to a wider and wider section of the population. Today, it is not the family budget that is elastic but the sense of responsibility, self-reliance and intellect among the majority of the population. This leads people to believe that they can get more than they give, and that such a principle is natural. Nature itself may enforce a basic, impoverished lifestyle on the nation because man purposefully ignores the way in which the world works. If we are reduced to the “simple” way of life that we extol in our books on green living and spiritual fulfillment, will our vitriol against capitalist “greed” cease? Or will we still try to make illogical connections between environmental lobbyist concerns and low-priced gas, or between fighting “terrorism” and keeping trade free and successful?

May 15, 2008 at 1:34 am
(47) phyliss ridley says:

THE PRICE OF GAS IS OUT OF CONTROL. SOME WEEKS I HAVE TO CHOOSE TO EAT BREAKFAST THIS WEEK OR PUT MORE GAS IN MY CAR. MY HUSBAND HAS BEEN SICK FOR A YEAR, SO NOW WE ARE MAKING IT ONE ONE INCOME.I DON’T THINK THAT GAS HAS TO BE THIS HIGH.

May 15, 2008 at 11:05 am
(48) Bill says:

Neither the government nor the oil companies set the price of crude oil. If you want to see excess gone rampant, just look to Dubai.

May 15, 2008 at 12:48 pm
(49) CHIP Coblyn says:

Although the comments are civil in tone I can’t help but to notice how deeply the chasm is between those who can afford gas no matter how high it goes, and those who feel the pinch right now. When any part of our society feels that the price of gas is causing real hardship—it’s too high for all of us. After all we Americans are all in this together—right?

May 15, 2008 at 5:42 pm
(50) dennis says:

The big company’s oil don’t care what happens .just as long for stock looks good and big bonuses. I bet if you check they’re making more profit an selling less gas. of course nobody talks about that. are politicians to not care are working class and I don’t care what side donkey or elephant our government does not care about us .

May 15, 2008 at 9:15 pm
(51) jimmy says:

From the way I read this, in the last twelve years, gas prices in europe have doubled and gas prices in the USA have tripled. Why?
http://www.eia.doe.gov/emeu/international/gas1.html

May 16, 2008 at 2:43 pm
(52) Kyle says:

Not everyone who thinks gas prices should be high can afford it. I think gas prices should be high. I feel sympathize with people who seem to “never catch a break.” Not everyone has public transportation. There are some legitimate reasons to drive trucks and I’d like to see relief give to those who need it.
If you drive a car that gets poor gas mileage – - If you bought a home and have an interest only mortgage – - If you commute in your car alone or worse SUV when you can take public transportation – - If you could have done with a more fuel efficient vehicle but were to vain to do it put your hand-up. It is not righ to hide behind those legitimately effected by these higher prices. Are we all in this together? No. Although some claim to be in it together they are part of the problem – from gas hogs to corporate executives at oil companies – from politicians to zoning commissions – from spending money on war instead of spending money on public transit – - We are not in this together. There are two many pages and two many people drafting the script. I think people know when they are doing something they should not be doing. Once you know it, you have an obligation to correct yourself. Good luck.

May 17, 2008 at 12:38 am
(53) Robert H. says:

Just as a thought :
Those that supply us consumers with fuel ‘ they:
1)Support finding raw crude(Mostly overseas)
2)Pipelining to transporting facility
3)Pay for transporting to refineries in US
4)Absorb refining costs
5)Pump through pipelines to many distribition locations
6)Pay for transportation to retail purveyors
7)Maintain an accounting staff to track expenses
8)Send taxes to US Agencies (and pay for postage).

I Would wager that taxes collected with no effort by the government Is way in excess of profits of oil companies even by todays “obscene profits”
RH

May 18, 2008 at 3:52 pm
(54) Chloe says:

The gas prices in my opinion are ridiculous, people are saying it will be up to FIVE dollars by the end of the summer. Now 1 dollar is kinda of not enough because people will use gas over excessively… But when it’s like 3 dollars and higher it’s just not that affordable. So atleast 2 dollars is acceptable. Surprisingly enough raising the prices on gas will actually affect gas producers and gas stations in a bad way because wit all the prices going up people will start riding bikes and walking because they can’t afford to fill their cars up with gas!

May 18, 2008 at 4:03 pm
(55) Garry Palmer says:

It’s naive to think that $6 gas would drive people to trains and buses for one simple reason, the bus and local train infrastructure is not in place in 95% of the US for them to use.

The premise is dumb until government spends money on integrated transport systems, and given the continuous calls for less government spending this will never happen here.

So let’s stop hypothesizing about something that can’t happen in the next 10 years (that’s how long it would take to get such a system if we started now) at the earliest. The US will do it but it will be done with much dragging of feet.

May 18, 2008 at 9:57 pm
(56) mike mickey says:

These high prices for those in urban areas are probobly not that big of a deal other than the collateral price hikes on other goods that it causes. For those of us outside major cities it hurts like hell. I drive 40000 miles a year for my business and I cannot do it in a econobox.It requires me to pull heavy trailers and a honda civic won’t do it. The tree huggers and oil companys and going to bankrupt all the country folks.

May 19, 2008 at 12:22 am
(57) Mike in Minn says:

Jimmy (comment 51) if the government taxes, for example, $3 on $3 gas you get $6 at the pump. If the price of fuel goes up $3 you get $9 at the pump, an increase of 50%. If the government was charging only .50 on that $3 gas, you get $3.50 at the pump. If the price goes up that same $3 you get $6.50 at the pump which is aproaching an 86% increase. That is the effect of taxation at different rates on price increases. The Europeans pay far more gas tax than we do thus the appearance of more price stability at the pump. At least that may partially answer your question.

May 19, 2008 at 1:15 pm
(58) Doug says:

DRILL FOR OIL… YOU MORONS WHO ARE TOO DUMBED DOWN TO THINK FOR YOURSELVES AND FEEL THAT THIS POLITICAL CORRECT THINKING ABOUT THE ENVIROMENT IS A GOOD THING IS NAIVE AND IGNORANT.
THE EARTH WAS COOLING IN 1969 UNTIL ALBERT GORE (LOSER) MADE UP GLOBAL WARMING AND ALL YOU GULIBLE NAIVE IDIOTS IN CALI AND NY ETC… BIT INTO HIS LIE AND FEEL SO RIGHTEOUS WHEN YOU SAY YOU WANT TO SAVE THE ENVIROMENT. Listen you idiots… There is nothing you can do about the enviroment. It will do what it needs to do and your puny existence will have little or no effect… I have read all of the stats and there are stats to counteract your enviromentalcase facts… Don’t tell me to consume less… My guns will be pulled out and I will tell you to make my day. I live in the USA and have a right to LIVE FREE from the FEDS and will not back down. I WILL CONSUME IF I WANT TO AND WONT FEEL GUILTY..

Sincerely,
Guilt free consumer who drinks oil…

May 19, 2008 at 3:32 pm
(59) Kathleen says:

I have a somewhat unusal view on the gas price situation. I think it’s a good idea that gas prices are finally rising to the point where consumers say ‘enough’. In Euraope and South America where gas prices have been over 6.00 per gallon for years, they have developed alternative and renewable fuel sources, extensive mass transit systems and people utilize more fuel-efficient vehicles. I hope it works and the American people will finally come to their senses.

May 19, 2008 at 8:53 pm
(60) Joseph says:

High gas prices are good for us.
Why ??
We will infill our cities and get used to living closer together and in doing so we will become more efficient in our use of energy.

Fact: we are in the decline portion of the curve of oil production; we are past peak; from now on the price of gas will continue to climb without stopping.

Fact: as prices go higher less people will be able to afford to drive; smaller cars will only prolong the agony.

Fact: the only solution at hand is to re-localize; live closer to your place of work.

Fact: Europe uses 1/2 of the energy we use for the same output. Europe has the advantage that their cities were developed before the automobile. Their development has less sprawl.

Fact: it does NOT matter who is elected president, we are running out of oil – period.

Educate yourself more at: theoildrum.com

May 20, 2008 at 8:24 am
(61) Jerry Moore says:

We DO NOT need more oil.
We DO NOT need more gasoline.
We DO NOT need more Ethanol.
We DO NOT need more greenhouse gases.
We MUST DECLARE as We The People, that . . .
We DO NOT want anymore internal combustion engines.
We MUST HAVE a viable alternative quickly.
We DO NOT have 10 years for this to happen.
We HAVE the technology to get started today.
We HAVE the means to develop infastructure.
We DOT NOT have a leader who recognizes the truth and will use his power to declare and commit our great nation to this end and set course to save the world from ourselves and new generations, FOR ourselves and new generations. It is not a gimme. It will be hard fought against the oil lobbies in particular, the auto lobbies secondarily. It is not like we will stop producing automobiles, it is just that they will have different power plants. The cream will rise to the top and the best, and the best for the environment will lead the way.

The internal combustion engine which has contributed so much to the development and pioneering in our country has outlived its usefulness and must be replaced. This will set the stage for the replacement of internal combustion engines that are being used with ever increasing regularity in third world and developing countries where they are advancing at far greater speeds than was ever thought possible. Booming dirty economies needing the transportation are attacking the food supplies to produce biofuel that produces with less efficiency more greenhouse gases that will quickly affect the environments that will affect the growing processes and the adverse weather conditions that an unstable environment contribute to.

I may not live to see it but it MUST happen and happen quickly.

Jerry Moore

May 20, 2008 at 8:34 am
(62) Carlton says:

In theory, high gas prices are good for America because it will make people buy smaller cars, however, I want a car that if I am in an accident I will not die. A small car does not give the protection of a bigger, heavier car. There is also the problem of people who have jobs that require them to go to work at a time or to an area that is not a good fit for public transportation. If I took a bus and train to work it would take about 1.5 hours (one way) so instead of being in traffic for 1 hour a day, it would be 3. For these reasons I feel gas prices are a drain on the economy because if you can’t make the changes to smaller cars or public transportation, you spend more on gas and less on other things that you need.

May 20, 2008 at 12:31 pm
(63) Shelby Lauener says:

This is like telling me it would be better for us to live in a tent and herd goats then we would not have to go or do any other thing in life. Why have we developed technology? High fuel prices do not have anything to do with the vehicle you drive. It has to do how many people want to drive. Just like an auction. If only one person wants what you have to sell it is not worth much. If several folks want the item you have for sale that item will increase in value.

May 20, 2008 at 1:22 pm
(64) Larry says:

Are higher gas prices “good for us?” I would not use the word good. But it “is what it is” and gas is going to go higher. We have enjoyed relatively low energy prices … both in vehicles and in our homes … for a very long time. With the increased levels of energy/gas consumption on a worldwide basis (factoring in growth from India & China), this was inevitable. Now that higher gas prices are here, my wife and I have taken action. 4 weeks ago, we traded in a SUV … and both got into more fuel efficient cars … a smart fortwo cabriolet and a Prius.
Now we are still driving the same number of miles (mass transit would not work for us) and we are spending are getting 40 mpg and 52 mpg respectively. I believe higher gas prices is not about about “good or bad” … it’s about making choices.

May 20, 2008 at 2:12 pm
(65) Jose says:

Actually I believe the high gas prices might do good. The US is a society of mass consumers and mass disposers. We consume like crazy especially fuels/power for the MacMansions, mega Suv’s and all the electronic contraptions we all have and rarely use. The high gas prices will force people to analyze their wild spending and hopefully realize that “less is more.” In addition, it will hopefully improve mass transit in areas with weak or non-existant service.

May 20, 2008 at 2:20 pm
(66) Cindy Meitle says:

I personally feel people will stop smoking and buying triple grande mocha fraps before they give up the oonvenience of their vehicles. Mom’s need space for the kids, dads need space for weekend supplies from Home Depot and if you’re like me here in Arizona, you enjoy having extra metal around you to protect yourself from potential accidents involving illegal alien drivers who have no insurance.

May 20, 2008 at 2:23 pm
(67) David Zabaldo says:

Typically, price hikes of any kind become excuses for others to follow suit and that’s the trigger Americans don’t need. I only hope that employers are offsetting employee expenses to and from work by adding a few more dollars to paychecks during this period. They have to get to work, safely and on time. They can’t take money from the grocery fund that feeds their spouse, children and pets just to arrive at the doorstep of their employer. There has to be a bit of give and take.

May 21, 2008 at 7:38 pm
(68) Jennifer says:

I agree that gas needs to continue to rise until people collectively say “enough” and finally do something about it. But what is that going to take? When gas cost $3/gallon, people said it would take 4. Now, it will take 5. You get the picture. When I bought my car, I wanted a car with low mileage that gets good mileage. Light car = good mileage. However, I live in semi-rural upstate NY, and my car gets stuck going up hills during the winter, it just doesn’t have enough power. I can deal with it, since if I’m late to school it’s not a problem, but working people don’t have that option. I think the biggest issue with the gas prices is fear. I know how much it hurts when I pump $40/week into my little car, how am I going to deal with it when I have to pay $50/week? 70? 100? This fear is only escalated by the election coming up.

May 22, 2008 at 12:33 pm
(69) AFA says:

A lot of folks can’t understand how we came

To have an oil shortage here in our country.

~~~

Well, there’s a very simple answer.

~~~

Nobody bothered to check the oil.

~~~

We just didn’t know we were getting low.

~~~

The reason for that is purely geographical.

~~~

Our OIL is located in

~~~

ALASKA

~~~

California

~~~

Coastal Florida

~~~

Coastal Louisiana

~~~

Kansas

~~~

Oklahoma

~~~

Montana

~~~

Pennsylvania

And

Texas

~~~

Our

DIPSTICKS

Are located in

Washington , DC!!!

~~~

Any Questions???

May 26, 2008 at 5:59 am
(70) Linda says:

Higher gas prices bring positive outcomes. Aside from more fuel efficient vehicles (the Hummer becomes a joke–people throwing money down the toilet)–alternative fuels become the necessity. But let’s look at trade. No longer can you drive the extra 20-mile round trip to a Mega Market for grocery shopping. the Mom and Pop grocery revives after a generation of almost being snuffed out. Commerce becomes more localized. People walk, ride bikes–which is healthier for their bodies as well as for the air. The environment gets a break. and perhaps all that factory out-sourcing is no longer feasible due to higher shipping costs, bringing factory jobs back to America. Not a bad thing at all.

May 26, 2008 at 9:48 pm
(71) hawaiian don says:

Linda, I love how your mind works. The only problem is for those living right on the edge. Your comments are valid, but only represent the reasonably finacially secure. Increases on such a rapid level can spell financial collapse for many in this climate of job outsourcing, declining US Dollars, inflation, recession and corporate downsizing, due to fears of the future. Had these prices happened 10+ years ago, every word you wrote would’ve been dead on target.

May 27, 2008 at 2:46 pm
(72) Kevin says:

Hey Joseph (60) educate yourself http://www.humanevents.com/article.php?id=26479
We are not running out of oil!

I realy can not believe some of the responses that I have been reading. It is like many of you will not be happy until we are a socialist country. Does your personal freedom mean that little to you? Will you not be happy until Government runs and controls everything (in to the ground)? The price of gas is what it is. Anyone with half a brain knows why it has gotten so high. It is called supply and demand. The economies of India and China have greatly boosted demand on oil in the past ten years. At the same time the supply has remained the same.

Why has supply remained the same?

Well our “brilliant” leaders in DC have seen to it that there is no increase in supply domestically. They have done this in an effort to appease “environmentalist wackos” and “global warming” fear mongers. For those of you who have fallen for the “global warming” hoax I urge you to visit

http://www.climateaudit.org,

this may or may not help you see the light but at least it gives you another perspective. $4 gas IS bad for our economy. Also, so is importing a big portion of our oil from countries that support terrorism. Think about it, we send them our money so that they can use it to fund terrorism against us. We must lift the stupid sanctions keeping us from obtaining our own oil domestically.

May 27, 2008 at 5:01 pm
(73) Colleen says:

I don’t think anyone should be told what kind of car they have to drive. Instead, a better solution to cut down on the insatiable appetite for gas guzzlers would be to have gas priced on a sliding scale according to the car’s/suv’s/truck’s gas consumption. So, for example, a Civic would be say $1.99 per gallon of gas and the largest of SUV’s would be $9.00 per gallon. The problem would solve itself.

May 27, 2008 at 7:54 pm
(74) hawaiian don says:

That’s a good idea, but hard to implement. How about a Federal Tag(license plate)Renewal Fee based on MPG rating of the car…eg: $0 for a Hybrid or any vehicle getting over 40mpg average. Perhaps a $1000 fee for the gas guzzlers and graduate it for all the others somewhere in between. The money collected should go to a fund for families of wounded and killed soldiers, who suffered so that oil could continue to flow, so the oil companies could make their historically unprecedented profits.

June 2, 2008 at 4:56 pm
(75) Dave B says:

I think the oil companies simply are making the money now because they know change is on the way. If this is what it takes to get all these people to driving these oversized vehicles then it might be agood thing. By the way I have absolutely no empathy for the auto companies because they brought this on themselves.

June 11, 2008 at 1:27 pm
(76) James P. Taylor says:

It appears that much of the conversation concerning gas prices and any benefit it has for us individually is completely self centered. Fuel prices affect us all in multiple ways. The farmer, the processor, equipment involved in all aspects of food prep, and also the delivery driver. So what if some yuppy in a big city can drive to his/her 9-5 in a little flintstone peddle car. Everything else in this world runs on fuel, and those increases will be brought down to EVERY consumer. You can ride your bike to the store, thus avoiding the expenditure of fuel in your car. But that cheese you go to purchase is now 150% higher because of the fuel it took to get it to your store. I wish folks would look at the big picture, how much of everyones life is affected by fuel.

June 12, 2008 at 8:47 pm
(77) Rube Hyman says:

The only way you can hurt the oil companys is in their pocket book If every american cut up mobil-exon credit cards and made believe that they dont exist you will see a change for the better Remember America this company does not mind hurting you well here is your chance to fight back and hurt them in their pocket book Sincerly yours Rube Hyman

June 15, 2008 at 12:42 am
(78) Robert Norris says:

Greed is the only thing going for the gas crisis. Government is too much on the side of big business to interfere.

July 4, 2008 at 3:14 pm
(79) ProfBogey says:

Paying too much for fuel? Tired of seeing outrageous extravagances in Dubai and elsewhere in the Middle East? Worried about your children’s future and their needs for energy? Near term, there is probably not much we can do that will change those worries. Like any addict, our dependence on petrochemical substances can be changed only by changing our behaviors. Unlike an alcoholic that has to quit cold turkey, a society like ours that is addicted to oil will have to change gradually, but, change must happen. The necessary changes that I see will involve life style changes that don’t need to be painful. Some changes can start today, such as: recycle much more rather than pitch stuff into the landfills, really reduce bad consumer habits like needing to have the latest and greatest “toys”, spend our income more wisely, and make our homes more energyefficient.

Other changes will require planning and effective execution of the plans on the part of our elected officials. Those changes will involve levying taxes on petrochemical imports and wise investments in other energy sources and conservation methods.

So let’s tell our elected officials what we think is important and pay attention to what those approximately 500 legislators in Washington say and do about what’s important. As an aside, we (and the media) pay way too much attention to the presidential elections. It’s convenient and fun to point the finger at one guy (or gal) and blame or honor that person. But, our constitution isn’t set up that way. Certainly the President is the single most powerful position in Washington; but, the one-sidedness is causing even the Senators and Representatives to pay too much homage to the president (a la “GW” and starting the Iraq mess). The balance of power is out of balance.

Let’s also pay more attention to our state legislators and provide them the feedback about what’s important. At all levels of government, we the people need to shout our message and out-shout the special interests groups.

Can we Americans, as a group of mostly enlightened people, change our behaviors and be patient enough to get positive results? I believe we can. Change starts with a vision. I think that we can get that message and vision to our elected officials. I think that those officials can enact the legislation that will help get us off the addiction. I think that vision, legislation, and results will spark innovation that reinforces a new energy paradigm. I think that the silent majority will need to make some “noise” that is heard in D.C. and in our state capital hallways in order to get off oil addiction.

July 9, 2008 at 5:16 am
(80) Emir Santana says:

At the rate Gas is rising, we will soon see many cities and states start becoming more self sufficient. Those that can will start growing even more produce locally, a rise in “Farmers Markets” would naturally start occuring. But all other goods that are transported from further locations will have a much higher price tag.

As for the response to my earlier comment about the greed of the “Fat Cats”(See 30 & 31) I’m not trying to say that companies should always hire when they don’t need to. But don’t be afraid when you have the need and the ability. In essence don’t be greedy as a company, for it is the greed of certain company executives that are driving the prices of goods up to a level that most cannot afford. Granted as an oil executive you will make more as you raise your gas prices, but at what price? Soon the price of other goods goes up to match rising shipping cost, so eventually those extra dollars are worth less anyway because they no longer buy as much as they once did. Some opf it just comes down to the price of crude oil and the understanding that foreign Oil moguls now have… Americans will always buy Oil because we currently do not have much other choice. They understand this now and will continue to raise prices, in addition the Gas giants too will continue to raise prices as they also understand this concept. It’s no longer supply and demand, it’s now just demand that is raising prices. More Cars, more people driving than ever, and no one wants to give it up.

One day we will finish developing the engines that run on water vapor, and we will all have a good laugh about the good ol days when water barely cost us a cent. Then we will run into a “water crisis” and find more alternative fuels, though this maybe doubtful since water would just disapate and evaporate back into the atmosphere causing raised moisture and eventually more precipitation. PS: That’s what they mean by renewable Energy sources ;)

July 21, 2008 at 12:45 pm
(81) Brittany says:

Well this is the debate topic this year. And I am learning through research that we need to get off oil for several reasons. Even if global warming isn’t happening.
GAS PRICES are not going down.
This will cause FOOD PRICES…. b/c farmers are having to pay more to fuel tractors and such and other goods to rise dramatically.
This hurts the ECONOMY
This hurts people.
And Ethanol is not an option because it totally makes EVERYTHING more expensive
So basically I like the idea of a net metering policy.

July 24, 2008 at 10:53 am
(82) Deborah Chaney says:

I think $4.00 a gallon for gas isn’t necessarily ‘good’ but it has made consumers more aware of how much they drive, what they buy and it has lowered road fatalities. All these things combined with a ’secret’ energy policy add up to a few people making lots of money and the American people are left holding the bill.

It is also a good thing for us because we make an “Explorer Box” that is a tent topped camping trailer you can tow with almost any vehicle – its comfortable with a queen size bed and extra room and lots of storage – so you don’t have to choose a weekend away or groceries for a week.

Maybe more innovation will emerge like our product out of all this mess we’ve been in for 8 years.

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