Friday, May 23, 2008

How to reduce gasoline prices

Gasoline (and all fuel prices) are outrageous. This is caused by too many consumers of fuel and too little production. China and India, both enormous countries with huge populations, are becoming wealthy enough to purchase automobiles, central heating, hot water heaters, electric lighting, radio and TV, and kitchen appliances for their people. These places now have the money to purchase the good things of life and that doubles or triples the demand for fuel. And yet I saw a US congressman live on C-Span yesterday deny that demand was rising. What world is he living in?
Demand management is distasteful (we call it rationing). But supply management (increasing supply) is possible. America could start drilling for oil in the Arctic and off our coasts. Except, Congress has forbidden it. America could start tapping its vast oil shale reserves, except Congress has forbidden it. America could build more oil refineries, except the NIMBY's prohibit it. America could build more nuclear power plants, except the NIMBY's and the greenies prohibit it.
Until America, the biggest economy and biggest consumer, increases supply, we will face higher fuel prices, rationing by price.

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