Gas Prices Could Rise to $5 Per Gallon

[JCL]

Originally Posted by X5rolls

I understand the economic argument for raising taxes on gas to lower consumption. It is a reasonable position in terms of cause and effect.

However, for many in the US, not all of course, the thought of raising taxes is just not justified. We are sitting on a significant amount of untapped oil in the US. It amazes me that we are not using our own resources more.

Ultimately, we will be forced to drill as the global supply dwindles but why wait? The new uncertainty in Africa and the Middle East will not do much to depress oil prices obviously. The volatility in oil prices and ultimately availability short and mid term will play havoc on our markets and the economy.

It is politically difficult to allow more drilling and increase refining capabilities. So what. It is called leadership, doing the things that are hard to do and being successful at it. That is what all politicians say they are about. They either all lie or do not have the guts to do what they say they will do.

Many countries do not know why we do not have higher gas prices and higher taxes.

Does not mean we should though.

The future isn't oil but we should limit our exposure to these increasing supply and market risks.

My comments were rather glib, but I wasn't suggesting that prices should be raised just for the sake of it. I don't think that the future is oil either. I think that waiting until that date to start to take action is a huge problem. North American economies will have incredible pain through the adjustments that will be required when the age of cheap oil eventually ends. This is fundamentally a risk mitigation issue.

That mitigation should be multi-faceted, but could include things like requiring much higher fleet average fuel efficiencies, accelerating the shift away from traditional internal-combustion engines and developing alternative vehicle power sources, shifting city planning priorities to support urban development that integrates with public transit, and so on.

All this will cost money. The funding for that should come from current users of cheap oil, on the principle that some pain now will reduce the much greater pain that is coming later.

Continuing to consume ever more cheap oil in the coming years, and delaying taking action, will be disastrous. I don't think it is about increasing production, it is about developing alternatives, and influencing demand more than supply.

Yes, leadership will be required. I hope those in power can demonstrate it.