Supply and Demand
Let's look at why gas prices have shot up over the last couple of years, and more specifically, the last month. The United States has 149 refineries operating at maximum capacity. There have been no new refineries built since 1976. During that time, demand has risen over 25%. Think of all the homes that have been built in the last 29 years. Think of the cars that are on the road and the type of vehicles that are on the road. I'm thinking specifically of Hummers and SUV's. Now, I'm not going to put down those who buy those vehicles. If they can afford the purchase price, the insurance, and the cost of maintaining the vehicle, not to mention the price of gas, well, good for them! I refuse to tell someone else what they can drive and what they can't. I believe in freedom of choice. And that includes choosing what vehicle to drive. It's not only freedom of choice, it's supply and demand. Automakers won't build cars that don't make them money. If it's not in "demand" there won't be a supply.
The sad fact is that no matter what kind of vehicle is built, we have to remember there are more vehicles on the road (and more houses to heat) but we can't refine more oil to meet the demand. I read recently in the local paper that there are 200 new developments in the works for Manatee County. I think I can assume at least one car per household, and usually two or more. I can't do the exact math, because I don't know how many houses are planned for each development. But if there are only 100 houses in each development, that's 20,000 houses, at least 20,000 cars plus the electricity to operate each house. More housing means more business and industry. More business and industry means more houses, more people, and more oil needed for housing, businesses, and cars.
I'm just as concerned as the next person about the enviroment and the quality of air and the environment around us. I remember my mother talking about growing up in Pittsburgh, Pennsylvania during the glory days of the steel mills. She often talked about how the street lamps would come on at noon because of the pollution in the air. I remember visiting Pittsburgh after the environmental crowds started cleaning up the city. While it was much cleaner, I can still remember seeing the haze of smog surrounding the city. I remember the taste and smell of the smog. It's not something I want to relive. I don't want to see future generations enduring what people in Pittsburgh and other heavily industrialized cities did up to the latter part of the 20th century.
One of the things environementalists are failing to take into consideration is that there have been dramatic technological improvements made since the last refinerly was built. New refineries have been designed to emit less pollution than the refineries now in existance. They are designed with new scrubbers and design changes that reduce sulfur and other emissions. We also now have the ability to choose the best locations for new refineries that we have the least impact on people and the environment. Twenty-five percent of the present refineries are in the Texas-Louisiana area. The same area hit by hurricanes Katrina and Rita. Remember them? And how high gas prices shot up immediately after Katrina roared through Louisiana and Mississippi and closed down refineries for days and weeks? I don't pretend to know just where better locations might be found, I leave that up to the experts in that field.
New refineries, in an environmentally correct location, built to meet pollution standards, could actually bring jobs to economically deprived locations.
Link to Hawaii Reporter here.
Let's look at why gas prices have shot up over the last couple of years, and more specifically, the last month. The United States has 149 refineries operating at maximum capacity. There have been no new refineries built since 1976. During that time, demand has risen over 25%. Think of all the homes that have been built in the last 29 years. Think of the cars that are on the road and the type of vehicles that are on the road. I'm thinking specifically of Hummers and SUV's. Now, I'm not going to put down those who buy those vehicles. If they can afford the purchase price, the insurance, and the cost of maintaining the vehicle, not to mention the price of gas, well, good for them! I refuse to tell someone else what they can drive and what they can't. I believe in freedom of choice. And that includes choosing what vehicle to drive. It's not only freedom of choice, it's supply and demand. Automakers won't build cars that don't make them money. If it's not in "demand" there won't be a supply.
The sad fact is that no matter what kind of vehicle is built, we have to remember there are more vehicles on the road (and more houses to heat) but we can't refine more oil to meet the demand. I read recently in the local paper that there are 200 new developments in the works for Manatee County. I think I can assume at least one car per household, and usually two or more. I can't do the exact math, because I don't know how many houses are planned for each development. But if there are only 100 houses in each development, that's 20,000 houses, at least 20,000 cars plus the electricity to operate each house. More housing means more business and industry. More business and industry means more houses, more people, and more oil needed for housing, businesses, and cars.
I'm just as concerned as the next person about the enviroment and the quality of air and the environment around us. I remember my mother talking about growing up in Pittsburgh, Pennsylvania during the glory days of the steel mills. She often talked about how the street lamps would come on at noon because of the pollution in the air. I remember visiting Pittsburgh after the environmental crowds started cleaning up the city. While it was much cleaner, I can still remember seeing the haze of smog surrounding the city. I remember the taste and smell of the smog. It's not something I want to relive. I don't want to see future generations enduring what people in Pittsburgh and other heavily industrialized cities did up to the latter part of the 20th century.
One of the things environementalists are failing to take into consideration is that there have been dramatic technological improvements made since the last refinerly was built. New refineries have been designed to emit less pollution than the refineries now in existance. They are designed with new scrubbers and design changes that reduce sulfur and other emissions. We also now have the ability to choose the best locations for new refineries that we have the least impact on people and the environment. Twenty-five percent of the present refineries are in the Texas-Louisiana area. The same area hit by hurricanes Katrina and Rita. Remember them? And how high gas prices shot up immediately after Katrina roared through Louisiana and Mississippi and closed down refineries for days and weeks? I don't pretend to know just where better locations might be found, I leave that up to the experts in that field.
New refineries, in an environmentally correct location, built to meet pollution standards, could actually bring jobs to economically deprived locations.
Link to Hawaii Reporter here.
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