Goal For The Green

Para-education and green living information

What’s FUELING High Gas Prices?

Jun-12-2008 By Barbara Zak

There is no doubt, soaring oil prices could trigger global economic troubles – if it hasn’t already. Add to that, Japan and the U.S. have announced higher unemployment rates recently.

A statement from the five top energy consumers – the U.S., Japan, China, India and South Korea, claimed that “high prices are a menace to the world economy.”  They implied that the outrageous prices are against the better interests of both producers and consumers, and pose a “heavy burden” on developing nations. They agreed upon a solution, that more oil should be produced.  Say WHAT? When are we going to get off of oil in this country? Whatever happened to Project Independence (1974), that has now become Project Dependence?  What is behind this outrageous crisis?

Energy experts argue that most oil producers, do not have the ability to expand. Saudi Arabia, claims that there is “no oil shortage now- or in the future.” They claim they can increase their production by another 2 million barrels a day.  But, for whatever reason they are choosing not to. So, this out of control oil price spiraling, cannot be justified by the so called supply and demand theory.  We can’t blame any one political entity, or China imports, or Mexico and Venezuela for not selling to us. The problem can be blamed, however, on our own government. In particular, the CFTC (Commodities Futures Trading Commission). The government refuses to clamp down on energy futures stock trading. They allow leveraging by wide margins, based on speculation of what the markets are going to do.  It is this leveraging, that had much to do with the banking and real estate problems that have occurred in the last two years.

In the last 5-10 years there has been an influx of one billion more consumers infiltrating new and emerging markets world wide.  They are working, eating and buying more.  Because of this, there is more demand on all commodities.  This will continue to drive prices higher at many levels, no mater what we do.  Anything that can be sold on the global market will cost more. That is a fact.  From here on out, the entire world will determine what we pay for oil, gasoline, commodities and raw materials.  Gone are the days when the U.S led the global economy, and set a shining example for the world to follow. Let’s just hope we can find a way to become a self-sustaining nation once again.

 

Surge in Mass Transit

Jun-3-2008 By Barbara Zak

More of us around the country are opting to use trains, buses, and subways to make our daily commute. With high gas prices, we have been forced to cut back on our personal driving and consider other alternatives. So, while saving on gas and exploring other options, some are finding that their commute takes less time, and is even somewhat enjoyable.

In the Seattle area, ridership on the Sounder (commuter rail system) has increased by 28% in the last three weeks.  In several large cities, transit systems are begging their riders to shift their travel to non-peak hours. This may give new meaning to flex-time in the workplace.  In San Francisco, seats have been removed from their subway cars, to allow more people to crowd in. In many places it is standing room only.

This should be the best of times for most transit agencies. Instead, many are struggling to accommodate the influx of new riders. Local and state governments, across the nation, are operating on very tight budgets.  Especially for busses.  Many transits systems can’t afford to expand.  After all, their costs are going up for the very same reasons we are leaving our cars at home- high gas prices. Some transit systems will be cutting back on service, even though ridership is up. They will be forced to raise fares just to cover operating costs.

Public transit has become the wisest economic choice in these hard times.  Ridership has increased by 3% across the nation for the first quarter of this year. For the first time since 1980, there has been a drop in the number of miles driven on American roads.

Any form of public transportation has always been a great community resource. For many it was an overlooked and last choice. Now, it is the most practical and viable choice.  High gas prices have given us the opportunity to consider public transit as an option to explore other alternative forms of transportation.

The Gas Crisis

May-27-2008 By Barbara Zak

With oil now in excess of $135 a barrel, there seems little likelihood of any kind of quick turnaround. In fact, it appears we may as well get use to it.  After all, many European countries, Ireland and the UK have been seeing prices of $8-$10 a gallon for awhile now. So, by the 4th of July, it will will be $5 a gallon, and by Labor day $6, with no end in sight.

By doing the basic math, we have much to complain about. Yes, oil prices are high, however, paying for gas is still the cheapest cost of operating a car. With the price of everything going up, we should be complaining more about the lack of purchasing power our money has. We want the Feds to “do something.” What good does it do to complain?  They are responsible for degrading our currency.  The dollar falls, oil prices go up and the politicians have a hay-day trying to deflect criticism. They clamor about the “windfall profits” the oil companies are making, but do nothing to decrease our dependency on foreign oil. Let’s face it the pain at the pump and in our wallets is bound to get a lot worse. 

Has public interest waned about the environmental movement?  Have worries about inflation, the high cost of energy, the war, and the general pace of global events, wiped out public concern about the environment?  I doubt it.  But those (the government) we want to take action – AREN’T.

How soon we forget the first Earth Day. It was April 22, 1970. It became the awakening of the Environmental Decade.  We became concerned and aware about the deterorization and crucial issues that affect all life forms on our planet.  We took notice of our mindless disappation of our resources. We paid attention to our wasteful consumption habits, and how those habits affect the natural environment.

Our oil consumption was high in the 70’s. Our own U.S. oil production declined and by 1973 -36% of our energy consumption was in foreign oil. The OPEC cartel was the cause of the rising oil prices then, as it is now.  The Mideast Oil Crisis was the onset of the international oil embargo. It brought panic to our nation. The Mideast oil producing nations, cut off exports of petroleum to many Western Nations, including the U.S. and the Netherlands. They were angry over our involvement in the Arab-Israeli conflicts.

Then as it is now, there were high consumption levels and panic stricken people.  Oil prices skyrocketed to what would equal about $2.80 a gallon today. There were lines at gas stations. People blamed the government, the gas companies, the Arabs and the embargo.  It wasn’t even the price so much. The people were willing to pay the price, but there was an actual “shortage.” Gas stations would run out of gas to pump. Some even went out of business.  The oil embargo lasted six months and was over in March of 1974.  Project Independence was created in hope of freeing the U.S. completely from our dependence on foreign oil by 1980.

For years we have been aware of alternative energy sources.  Still today, we are more dependant on foreign oil than we were in the 70’s.  The oil shortage and embargo of 1973, created an growing awareness, that changed our views on energy useage.  It led people to choose economical solutions and make wiser personal choices about their energy consumption. It became popular to use less fossil- fuel, and pay more attention to how much we consumed.  The difference is today, we have no choice. We are being forced to make changes.