Gas!

Anybody interested?

Today, in the Senate, several oil executives testified regarding high oil and gas prices. The easy knee jerk reaction to this issue is to blame the oil companies. However, lately many conservative pundits have come to the rescue for these poor oil companies, and began blaming the government for these high prices, citing the ban on drilling in many areas, as a key argument.

I do not quite see it that way.

High gas prices are the result of 6 different issues, oil companies, American government shortcomings, OPEC policy, a lack of infinite oil, automobile manufacturers, and the general public.

Oil companies are partially to blame for high oil prices because they are gouging prices, and this is reflected by their record profits. While there should be no law punishing companies for high profits, those companies should carry their fair share of the burden. Also, oil companies are not filled with completely evil greedy executives. But, they are not perfect angels who only want the best for their consumer.

The American government is partially to blame for high oil prices. The most glaring case would be occupying a country that had been a major oil exporter, effectively grinding the oil exportation to next to nothing. Also, failing to have the foresight to encourage alternative energy sources and more efficient uses of energy does not help.

The Majority of the OPEC nations flat out do not like us. So given the chance to hurt us economically, they most certainly are likely to take it. Many OPEC countries do have diverse economies, but oil is vital to their economy, so $130 a barrel oil helps them more than $20 a barrel.

Most experts are not certain how much oil is left in the country. It could run out in 20, 200 or 2000 years. But, at some point, it is likely to run out. Farts will be around forever no matter what, hence why they are free, but if there is something that we do not have an infinite amount of, it will be worth more. (Special note: It is obvious that I am not a professional economist, I am just trying to give an opinion)

Car manufacturers have sold a ton of SUVs (Complete Disclosure: I own a Jeep Wrangler). You cannot blame the car companies for selling people buy, but they did not spend much time working on improving the efficiency of these vehicles. It is my pure not based on any research opinion that cars could average 50-60 miles to a gallon of gas without it even being a hybrid. Also, GM scratched a possible monopoly on the electric car market to invest in the Hummer (See the documentary "Who Killed the Electric Car"). While oil companies have experienced record profits, American Automakers are in the red, so they have hurt themselves more than they have hurt the consumer.

At the end of the day, the general public is to blame for high gas prices. It may not sound good or be popular, but if the general public were to cut back on consumption, demand would be lowered and oil prices would come down. Most Americans only sacrifice when they absolutely have too. I know many people who need to have trucks and SUVs for their livelihood. However, families of four can get around in a Honda Accord, they don't need a Suburban. People could also carpool, use public transportation, buy homes closer to work, and cut down on unnecessary trips. Of course, one cannot and should not be forced to do any of these things. But, each individual should recognize and take blame for rising gas prices.

Bottom line? There is rarely a problem with only one cause. It is easy to point blame, and blame should be pointed. But, you and I should also be blamed.

Rabbit