Summer is coming on fast and gasoline prices are soaring. There is no question that the increased cost in gasoline will have extreme consequences in the future if prices soar. Some estimates predict gasoline going as high as $5.00 per gallon by the end of the summer, and $10.00, $15.00 or more per gallon in the not-so distant future.
The rise in gasoline prices has been blamed on many factors including:
Increased Demand In China
China is prospering. Their economy has been booming and more and more Chinese are starting to pick up on the luxuries that come with prosperity – that includes purchasing cars. What happens when you have a billion people buying cars who didn’t have them before? Demand goes through the roof – and they are all going to be filling their tanks to keep them running. Can you blame them?
Unstable Situation with Iraq.
Iraq is a factor, but not just oil produced there. 25% of the worlds oil passes right of the shore of Iran, and according to the national media, an unstable situation with Iran continue to drive prices higher.
Switch Over from MTBE to Ethanol
In years past, the Environmental Protection Agency have put more strict requirements on the percentage of oxygen required in gasoline. In the past gasoline companies used methyl tertiary-butyl ether (MTBE) to boost oxygen levels, but with concerns that MTBE may contaminate groundwater, more refineries are switching to Ethanol. But it is said there is not enough Ethanol available, and the shortage of Ethanol has caused some gas stations to run out of gasoline at times.
(I can’t help but wonder if there are other, yet bigger, factors happening behind the scenes? Price fixing? Planned limited supply? (remember Enron?) I’m not knowledgeable enough about the oil and gas industry to even speculate, but what I do know, is there is big money on the table, and sometimes the temptation is just too much for some people.)
With gas prices soaring, one news report said for the first time there is a notable decrease in how much Americans are driving. Many Americans are driving less, and some families are planning on cutting their summer travel this year due to increased gasoline prices.
We live in a fortunate situation, Southeast Idaho we have wonderful summer opportunities within just 2 or 3 hours drive - no need for 12-15 hr trek. Yellowstone National Park - Jackson Hole, Wyoming – Salt Lake City, Utah – all great destination locations with fun, excitement and adventure. And there’s likely dozens of other smart, fun, and inexpensive summer activities that you take advantage of right here.
For me, some of my fondest memories come from summers spent within 100 miles of here.
With so much available so close to home, will Idahoans be changing their summer plans?
Personally, I don’t think so, not this year. But if prices continue to rise and prices start to approach $15 - $20 per gallon, even that trip to Yellowstone may become something too expensive for the average family. Look out, because I think that day could be coming. And when it comes, oh how life will change.
Loading ...