Sunday, May 4, 2008

Gasoline

Wow, things have been a little rough. I did find a position and kept my employment. Now for all the hard decisions to be made. I need a bigger home. We would have had one years ago had my wife not gotten sick with cancer. Things are rough. Decisions must be made. I will be going over my finances to determine costs of a new home and what I can afford. Unlike what many Americans did I will figure it out and not listen to a lender who makes money by selling me a loan.

I also have some thoughts on gasoline. For many years I rode a bus. The bus stop was 7 miles from my home. Now I am driving twice that far to go to my new office. There is no public transportation to take me to work. The cost is just a little more than I was paying as I no longer pay for public transportation. Politically gasoline has become a hot topic. Clinton and McCain want to cut the 18 cent per gallon gas tax for the summer. I do not like this idea. It is an election year idea. The money is used for road construction costs. Where is that money going to come from if it isn't in gas tax? I don't think after the Minnesota bridge collapse they can just not spend the money? They want to tax big oil companies too. Problem is they are working off a small margin. The profit margin for oil companies is probably only 8 percent. They would offset the gasoline by taxing a low profit margin company? If years ago the Alaska Wildlife Refugee was allowed to have been drilled for the oil up there. That oil would be coming online today and make us less dependant on foreign oil.

Democrats stopped the drilling plan and now the worldwide supply isn't enough. This issue with oil is because the biggest supply is in unstable regions. That forces risk factors into the market price. The way to lower oil costs is simply supply and demand. Raise supply and/or lower demand. Prices go up as a way to lower demand. Amazing how so many people drive too fast in big vehicles. If they followed the speed limit they may just lower their fuel bill. It might cost them 2 minutes and they can't deal with those minutes being gone. America created its own problem. With the demand for ethanol as a solution we may see gas and food prices rise. ethanol is not nearly as efficient as gasoline. That is why we use gasoline, its more efficient. Now food prices are rising due to transportation costs as well as more demand for food for alternative fuels. We are creating the double edge sword. Buy extra food. Store food up. Keep grains, rice, and other food. The day is coming when it will be needed to offset your food budget.

No comments: