Oil US$118 per barrel

by frog

Petrol prices are going up so, rather than responding as the market says we should by buying less petrol and finding an alternative, we have the petrol burning lobby asking for government intervention. Gaah!

Interestingly the same debate is occurring in the US where a totally different government with a somewhat more brutal approach to securing energy is also being held responsible for higher gas prices.

But, as Environmental Economics says:

Supplies are decreasing–both temporarily through unexpected refinery shut-downs and permanently through stock depletion.  Demand is increasing–both in the U.S. and worldwide.  Both of these will cause gas prices to rise and that’s good.  If gas prices don’t rise, we will consume gas even faster and run out sooner.  Higher gas prices encourage conservation and encourage investment in alternatives.  High gas prices might be uncomfortable while we search for viable long-term solutions, but they’re more comfortable than the alternative:  no gas and no solutions.

frog says

Published in Economy, Work, & Welfare | Environment & Resource Management by frog on Thu, April 24th, 2008   

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