Seems like this is the right forum to post this reference, although I suspect it may rile up a few people. We waste a tremendous amount of irreplaceable energy just moving electricity around. Suggest this is not sustainable even in the medium term, let alone the long run.

I suspect we are on a razor's edge in terms of supply and demand, and it takes a very little movement on either side to drive prices completely wild. We're seeing a huge amount of volatility in the energy markets now, most indicators predict this is only going to get worse.

Here's some fairly reasonable ideas on how to (at least temporarily) fix the problem.

Analysis of energy use in the USA

If we weren't wasting so much fossil fuel in moving energy around, perhaps the price of gas or diesel at the pumps might not be quite so high.

George

I am just a simple guy leading a simple life. I don't pretend to have the answers (or even the questions).

I hate that I am now paying over $3.50 for diesel fuel and will most likely be paying more in 4 months.

However, I do believe that I understand why we are paying more.

Probably the most important factor is supply and demand. While the supply factor (under perfect circumstances) may be relatively stable, in todays era of unrest (or physical disaster) it is not. There are periods when available or perceived supply decreases. Perhaps more important is demand. With emerging economies as large as China or India, there is a huge increase in demand. There is no way that prices will not increase under these circumstances.

For us here in the US there is another large issue, and that is the value or the US dollar. Internationally, the dollar is not worth anywhere near what is was 1 or 2 years ago. If there had been no actual increase in the value of oil, we would still be paying significantly more for oil because the dollar is worth less.

Personally, I do not see a short term change. The dollar will not recover soon. The demand for oil will probably continue to increase for decades.

Regardless, I will continue my RV travels as longs a s possible.

I read where that most recent spike in Oil was caused by one investor, he/she wasn't identified, bet its a Saudi Oil Sheik. george

quote:

read where that most recent spike in Oil was caused by one investor, he/she wasn't identified, bet its a Saudi Oil Sheik. george

I would like to read that article. Can you give a link?

In todays huge, worldwide oil economy, I do not believe that an "investor" can control prices. OPEC does have some control by determining how much to deliver, but even they are under huge political and economic pressure.

We in the US are "lucky" to have the fuel prices that we do. There are no counties (that I am aware of) that import their oil supply that have lower at the pump prices.

Yes, we may have seen and be seeing larger per cent increases than other countries. But that is due to our decreasing US dollar vale in the international market. I don't have the exact numbers, but I believe that the dollar to Euro ratio has gone from near 1.0 to about 1.5 in the last 7 years. That is a HUGE problem for US here in the US that are paying for oil on the international market (however it is great for international tourist trade here in the US...people from other countries can come her for vacation at very reduced prices).

Art, as I recall, it was a Yahoo headline 3 to 4 days ago. Believe it was a Ruiters forward. Thtas all i can say. george

Not that I know much but it seems like there is every excuse on the books for the rise in gas/oil prices.

If the weather guys predict a high hurricane season, the prices jump up.
If the season isn't bad, the prices jump up.
If there is an increase in violence in Iraq, the prices jump up.
If there is a drop in violence in Iraq, the prices jump up.
If we DROP our demand of oil, the prices jump up. If we RAISE our demand for oil, the prices jump up.

I can continue on....but that is the trend I have seen and it pretty much sucks.

If ya'll haven't seen the documentary, "Who Killed the Electric Car" it is quiet interesting in how many factors (ie: corporations, government, car salesmen etc) went into the killing of the electric car.

Thanks George, I will do a search. Almost any new information will be a big improvement for me. I am not sure, but I think I may have forgotten more than I ever learned. I hope that isn't possible.

There is a price at which the USA will once again start developing new domestic oil reserves. We are just not there yet.

Here are two articles that pretty much highlight the problem:

New Alaska Oil Leases Being Offered

Green Groups Decry Alaska Oil Lease Plan

Let the lawsuits begin.

As an RVer who has not been able to afford to go anywhere in my RV in several years, and now living in metro area on a 5-lane state highway, listening to jack-rabbit starts, my humble opinion is that easy credit has made it transparent for the populace to buy all the gas they can consume, without any apparent prudence. Then these gluttons act like they are practicing for the next drag race wherever.
If they were living on a fixed income, and may have to exist for two or more weeks without any additional fuel, and unable to afford to drive 500 miles to their next proposed temporary parking place, or spin rubber on their 4-wheeler, we might be able to reduce the use of gasoline.

Now, if the military had to ration their use, we might start reducing our consumption, but that would irritate thousands of the career military. That might also irritate politicos, so if we can just educate private citizen users on how to conserve fuel, I'll be satisfied.

Hey, I'm old enough to remember rationing back in the 30,s and 40's. My father had to haul 3 extremely heavy boxes of carpentry tools on the street-cars of Chicago, because he had used up his limited allotment on previous work trips around the city and suburbs, just to feed his family of four. We just don't know how good we have it today! After the election, I would be in favor of reestablishing rationing. How about everyone else? - John - Please refrain from any flaming responses.

Why? Oil - USA from CIA World Factbook

Oil - production: 7.61 million bbl/day (2005 est.)
Oil - consumption: 20.73 million bbl/day (2004 est.)
Oil - exports: 1.048 million bbl/day (2004)
Oil - imports: 13.15 million bbl/day (2004)


Assuming we are about the same in Exports and Production of oil per the CIA. Why does the government allow the EXPORT of 13% of our oil production?

I've read that if you want the price of GAS to drop (which is what we really care about, after all), then the Federal government should stop the states from requiring their own blends of gas.

For example, there's a separate California blend that is supposed to help with smog. There might even be more than one blend for different areas. Other parts of the country use their own special mixes. Overall, I think there are 20-30 different blends.

This means gas can't be shipped around the country when there are shortages. That drives up the price.

I think the price will level off before it reaches the point that alternative fuels are equal to or cheaper than petro. If not then the oil companies will bring this competition down on themselves. I doubt they will want to do that.
I for one don't have to limit my traveling yet but I don't drag a toad around either. I haul a motorcycle on the back of my mh so that once I get where I'm going I'm getting 50 mpg when I use it. This really helps to make up some of the costs.
Having a car is nice but it really does add a lot to the cost of traveling. We, in the USA, have been spoiled by our autos and think that we can't get along with out them. Alternate transportation such as scooters and such will hopefully become more accepted here in the future because they really alleviate a lot of problems such as pollution, traffic congestion and rising fuel costs. I've been using them for years - doing so seldom limits my adventures. On a rainy day I sit inside and work on a puzzle. I'm also looking in to an electric scooter that I can solar charge. Cool stuff!

[QUOTE]

For example, there's a separate California blend that is supposed to help with smog.
Yes but it lowers your MPG so you will use more fuel in the long run and cause more smog..Go figure,,I remember a few years ago GW said lets open up the oil field in Alaska before we give all our money to other countries. How can a small majority control the majority? Now we all will pay..

We just saw the reason for ethanol additives -- the Iowa primary. As long as politicians want those votes (and the farm state senators generally), they have an incentive to push corn-based additives.

Demand reduction through conservation is about the only thing that would help significantly in the short term. All the other approaches just nibble around the edges of the problem - in the short term.

Since we won't be able to get any conservation on a voluntry basis, perhaps we should slap a hefty carbon tax on fuels, then invest the proceeds in alternative energy subsidies and research. That's an approach. It would get a fair percentage of SUV, luxury sedan, and pickup drivers out of their commuting vehicles.

Rationing is another, but I'd prefer something which left more choices to people. Of course a carbon based tax would hurt RVers badly. Rationing would probably kill RVing entirely, since such "frivolous" use could not be justified.

Allowing the oil companies and oil producing countries to continue to benefit from ever increasing prices is the status quo approach we now have. Surely there must be something smarter we can do.

Unfortunately, as others point out, we are in a global market and the consumption of others is starting to rise.