Saturday, July 07, 2007

Gas, Oil, and the cost of Life

I have learned that, as things stand today, oil surplus supplies are up, while gas production is down. Why is this? Refineries are only running at about 86% capacity. This means that they could make more gas, but are not.

While cruising the news shows today I heard a pundit say that at $2.50 a gallon, the oil companies make 35 billion in profits. At $1.50, they'd make $20 billion. So the question is not allowing them to make a profit, but how much profit is enough? And should we be able to dictate? And granted, I realize that the commenter could have been pulling numbers out of thin air.

Like it or not our economy is dependant on oil and the gas that is made from it. What the maximum gas price we can sustain before the price of goods will rise beyond affordability? How high before all of those commuters overwhelm the public transit system? How high before cities, counties, and states have to cut other services to be able to pay for gas for police, fire, public works vehicles?

The last energy bill was written by the energy companies most likely to profit from it. It's time to give someone else a shot.

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