The unrest in the middle east has caused the price of oil to climb steadily over the past few weeks. That has spurred a wave of emails calling people to action against the oil companies. The idea behind these emails it to boycott the major oil companies, causing a reduction in demand and forcing them to lower prices. One of the emails says “The oil companies and the OPEC nations have conditioned us to think that the cost of a gallon of gas is CHEAP at $1.50 – $1.75”.
Well…I have got news for you people… even at $2.50 gas is dirt cheap!
Oil is Non-Renewable.
Let’s put all the environmental, political and humanitarian issues aside for a second. The simple fact is that the oil we pull from the ground was created over the course of millions of years. It is non-renewable and we are sucking it down at a rate that is not sustainable. Eventually there will be no oil to speak of, but in the near term we will certainly see the end of “cheap oil”.
You Pay More for Your Starbucks
A Venti (24oz) iced coffee at Starbucks costs around $4.00, that is $0.16 per fluid ounce. The average cost for a gallon of gas in the U.S. as of today is $3.52, that is $0.0275 a fluid ounce. To put that in context if you paid the same price for a gallon of gas as you do for a gallon of Starbucks it would cost you $20.48 per gallon. That in itself is a pretty amazing fact, but when you start to look at the numbers in terms of raw energy it is even more amazing.
The price for a barrel of crude oil is right around $100.00 today, that is 5,376 fluid ounces or $0.0186 per fluid ounce. That same barrel filled with Starbucks would cost you $860.16! I am not complaining about Starbucks. I love Starbucks… but let’s just put everything in perspective when it comes to price. Yes… even your Dunkin’ Donuts cost more than a gas ounce for ounce.
Gas Should be More Expensive
Did you know that the 1 barrel of oil equates to 25,000 hours of human labor (12.5 years at 40 hours per week). The energy density of oil is simply amazing and our thirst for energy is causing us to consume more oil than the earth has to give. Many scientists believe that we have already reached peak oil production and we will begin to see a downhill slope over the coming years.
As we deplete this incredible resource we should not only expect the price to go up, our government should inflate the price of gas to ween us off this terrible addiction faster, before the oil is completely gone. I would personally love to see gas at $20.00 per gallon within the next 10-15 years, with a clear plan that outlines exactly how and when the prices will be raised in advance so the public knows what is coming. In my opinion, all tax revenue generated from the increase should be invested directly in research and development of alternative energy projects.
I’m No Angel
Sure, I have switched out my light bulbs. I try to turn off the power. But let’s face it… I drive a truck. I have a boat and jet skiis. I don’t carpool. However, I think more and more about my personal gas-guzzler vehicles every day. I would buy an electric F-150 tomorrow. Same with the jet-skiis and the boat (my dad is working on a mass-production electric boat if anyone is interested). If gas was at $20.00 a gallon right now I think alternative modes of transportation, whether electric vehicles or mass transit would be a bigger priority for our government and the private sector. I am really happy that the Chevy Volt is finally here, but in my opinion it has taken far too long.
An Ugly Future
If we keep running at this rate with no intervention to slow consumption we will eventually come to a point of unavoidable crisis. Everyone will wake up and realize that the resource we depend so heavily on for everything from cheap gas to cosmetics to clothing is no longer bountiful.
Think about it… we will have a bunch of unkempt, naked people riding around on bicycles.
Nobody wants that : )
Great post and you are so right. Thanks for putting this into perspective. I don’t think people think like this but if they did people would probably either cut back on gas consumption or at the very least stop complaining about the the rise in gas prices.
Love the comparison to “your Starbucks costs you more”! Great perspective and I too think the price must go through the roof before any change can be expected.
we need to talk. not only about the project for the phil campbell convention that i’m road tripping too but also about my ark project. your gonna LOVE it. let’s connect.
briefly.
http://www.livingark.com <— ark
365 days.
heart of the national forest in the uk
media every day
word of mouth company <– bring in conversation
flipping following into people looking at green alternatives.
let's chat! 🙂
Sir. This is the most valuable article for each and every citizen of the world. Thank you for alarming us with your writing skills. I do want to mention a point that is our dependency for Oil is too high and I think mankind cant control this. The number of cars and bikes are increasing at drastic rate so the consumption also rises steadily. I think the U.N.O has to take some serious steps regarding the usage of Crude Oil which has to be blindly implemented by the nations of the world. The U.N.O has to intervene in the amount of Oil Sucked from earth and should have a control over it. This is will surely make crude oil available for atleast 100 years. Thank you.
Higher gas prices would certainly help curb consumption, although I don’t think we should get there by taxing gas more than we already do. Let the free market continue to develop sustainable energy alternatives.