Who Likes Hydrocarbons? Over the past few weeks the price of gasoline has again risen to what many would consider to be “astronomical” heights in the United States. The question on the minds of many Americans is why has gas prices risen to their current point? Some would use the basic economic supply and demand argument. For example, it is estimated that for every 4 barrels of oil that we use, we can only find one to replace it. Or put another way, the oil companies are charging a price that reflects the value of oil remaining in the ground, as oil is a non-renewable resource. But the problem to many in America is that oil companies are bringing in profits that have never been seen before in corporate history.
Conspiracy theories aside, it should be noted that the United States still has the lowest gas prices in the “industrialized” world. The average price for a gallon of regular gas is now somewhere in the range of $3.50. But if you compare what we currently pay to our western European friends, we have it rather easy. The lowest price in Western Europe can be found in Bulgaria, where they pay $6.12 a gallon. On the other hand, those residing in the Netherlands pay $9.39 a gallon. Granted, Western European governments have always been apt to charge a higher tax on fuel, hence the big difference between us and them. Our motor fuel tax is essentially meaningless in the grand scheme of it all, as different states have different rates and typically those funds procured are used to strictly for road repair and construction.
So, if you look at what we pay in the grand scheme of it all, we really should not have any room to complain. Many Europeans tend to drive smaller and more compact vehicles, hence the reason why we really do not hear too many complaints from across the pond. Many in the U.S. (depending on where one resides) tend to drive larger and less compact vehicles. I have no pity for those who chose to drive a massive SUV that burns gas like none other and complain about it. If one cannot afford it, buy something smaller and more economical, it is that plain and simple. Oil prices are going to continue to climb no matter what happens, i.e. I don’t believe that Congress is going to solve the problem anytime soon. I envision at least $4 a gallon by summer’s end, so be prepared.
Conspiracy theories aside, it should be noted that the United States still has the lowest gas prices in the “industrialized” world. The average price for a gallon of regular gas is now somewhere in the range of $3.50. But if you compare what we currently pay to our western European friends, we have it rather easy. The lowest price in Western Europe can be found in Bulgaria, where they pay $6.12 a gallon. On the other hand, those residing in the Netherlands pay $9.39 a gallon. Granted, Western European governments have always been apt to charge a higher tax on fuel, hence the big difference between us and them. Our motor fuel tax is essentially meaningless in the grand scheme of it all, as different states have different rates and typically those funds procured are used to strictly for road repair and construction.
So, if you look at what we pay in the grand scheme of it all, we really should not have any room to complain. Many Europeans tend to drive smaller and more compact vehicles, hence the reason why we really do not hear too many complaints from across the pond. Many in the U.S. (depending on where one resides) tend to drive larger and less compact vehicles. I have no pity for those who chose to drive a massive SUV that burns gas like none other and complain about it. If one cannot afford it, buy something smaller and more economical, it is that plain and simple. Oil prices are going to continue to climb no matter what happens, i.e. I don’t believe that Congress is going to solve the problem anytime soon. I envision at least $4 a gallon by summer’s end, so be prepared.
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