Gasoline Prices and Misguided Critics

We are now facing gasoline prices that are over $3 a gallon for self-service regular almost everywhere in the U.S. In many places, the price is $4 a gallon and rising. As with any price rise, some people are convinced that this is "outrageous," or "ridiculous." Of course, the reason they think it's outrageous or ridiculous is because the price is higher than it used to be, and they don't want to pay it. So they have to have somebody to blame. Depending on their point of view, they'll blame and criticize one of the following: They'll criticize the oil companies because they read about the millions of dollars in company profits or the percentage amount of increase in those profits. Of course, those figures don't reflect the percent of profit when compared to the cost of doing business, or what is commonly referred to as the "profit margin." Some will criticize the government for not monitoring and somehow controlling the price of gas. Some of these folks are also convinced that we should make available to the motoring public some of our strategic national reserves of gasoline. Never mind that any kind of law regulating the price seldom works very well--certainly not in the long run--and that releasing national reserves could significantly imperil national security in the event of a global crisis. In addition, such domestic measures would have little impact on the price of crude oil overseas which is a major factor in determining the price we pay at the pump here in the U.S. But the most misguided critics of all are those who criticize the rest of us for driving our cars and thus using the gasoline. I've heard people criticize those who use sport utility vehicles and recreational vehicles for the amount of gas they consume. I've heard people criticize average Americans who drive their cars great distances to work or on long trips. I've heard people criticize almost all of us for continuing to pay the high prices for gasoline--and on and on it goes. If somebody has the money to pay for gas to go in their SUV or RV, more power to them! Why should I be critical of them? And if we stop driving our cars, who will that hurt? Most people do not wish or cannot realistically plan to change their way of life so radically as to stop driving. Some no doubt may have to alter their place of residence or change jobs if the costs are prohibitive. Adjustments may have to be made, just as adjustments are sometimes necessary for all of us. The reasons for the rise in gas prices are many and complex. Previously undeveloped countries are finally coming into the modern world of technology and industrialization. As such, they require more energy usage. Simple economics of supply and demand, along with questions about the stability of the supply, are increasingly coming into sharp focus. Perhaps most significant of all is the fact that we have huge untapped reserves of oil in our own country and off the coasts of the Atlantic and Pacific Oceans and the Gulf of Mexico which we are prevented from exploring or exploiting by various special-inteest groups and politicians. Criticizing those who use the resources is hardly the right approach to this situation. We have been spoiled by unrealistically low gas prices in this country for generations. And in terms of real costs, accounting for inflation and other factors, transportation in America is still probably a pretty good deal. Perhaps the cost of transportation will reach a point, however, where enough people will put pressure on the politicians, bureaucrats, and special-interest environmentalists that the oil companies will be permitted to utilize the resources already available to us in the western United States and off the coasts of America so that we will no longer be held hostage by the Arabs and other foreign governments, nor have our freedom to travel restricted by those who would undermine our entire way of life.