The Price of Gasoline...

About a week ago I decided to take a look at internet information regarding our economic dependency upon oil. I would encourage others to do the same, however, be ready to face some hard realities. It is time for all of us to start facing a change in our day-to-day lives, and seeking alternative energy sources.

Here are a few websites that I visited:
http://pup.princeton.edu/chapters/s7121.html
http://msnbc.msn.com/id/4287300/
http://msnbc.msn.com/id/5945678/
http://www.lifeaftertheoilcrash.net/
http://www.grinningplanet.com/2005/06-14/peak-oil-article.htm

Although you may look at the above sources and be thinking..."okay, looks like another wild tangent"... I hope you will at least take a look and, using critical thinking, decide for yourself as to what the above information may mean...or does mean.

My decision to read all this was spurred by the price of a gallon of gasoline at the pump, and from hearing people say: "oh, it is just the oil companies' trying to squeeze every penny from us." (Or some similar statement).

Here in Wisconsin, the price of a gallon of gas is varying between $2.29 and $2.39 for 87 octane regular unleaded. (It is pretty rare to find any ethanol mixtures in our area, sadly, so the price does not reflect that). Since I don't use the higher octane fuels, I can't accurately give prices for those...but generally I recall seeing that the high premium fuel is running around $2.60 or more per gallon. Listening to Leno last night (7-26-05), he said that he was paying $2.99 a gallon in California...but who knows what octane.

Like everyone else, watching these prices rise causes me to think back (with my foggy memory) to lower gas prices. There are events in my life that have made me more aware of gas prices at certain times...these events are my moves from one location to another related to work, or other work related situations.

In the late 1980's and early 1990's, I worked as an itinerant teacher where I travelled daily in the rural areas of N. Central Montana. A typical day's work included a roundtrip drive of about 250 miles. I purchased gas probably every couple days (and drove an economical car for long commuting - 30 to 40 mpg), and all of us were complaining about how our mileage reimbursement was not keeping up with the price of gas. (Gulf War I era). I remember when gasoline reached $1.59 a gallon. I also remember retiring our gas-hog 4x4 crew cab pickup truck. We didn't drive it much (used for rugged travel or hauling), but when the prices were well over $1 a gallon, it just was too expensive to drive. It got maybe 8 to 12 miles to a gallon on a good day. I remember one of our last uses for it was a hunting trip. We drove round trip a little over 200 miles. Do the math, you'll find our venison was not necessarily "cheap"... $45 in gasoline (although I recall spending $70 - likely including the fill-up after the trip).

Of course after the $1.59 prices, gasoline dropped down to hover in the $1.29 range. It seemed to stay this price for quite a while, and I certainly recall that price being "typical" throughout the mid to late 1990's.

My next "gasoline price memory" comes from 1999 when I was moving to Eastern South Dakota. The interesting thing about South Dakota is that the price for gasoline would differ greatly (or used to) just by driving across a line of demarkation...as in the Missouri River. In the late 1990's, prices for gasoline East River were cheaper than West River. (West River includes the Black Hills...and as you might guess, gas is highest there!). So...when I was moving, East River gasoline was typically $1.07. West River gasoline was $1.19 to $1.25. The good thing was that I was moving to "cheap gas" country! I was also moving to "ethanol" country.

Of course the price of gasoline made its steady move upwards, and before long the typical price was the same as West River. Fact is, the price difference between the two locations (300 miles or so apart) ceased to be present. Because of the price of gas, during the early 2000's, I remember my male companion retired his old motorhome (sold it for cheap) , fondly called "the camper". The camper was a 1974 vintage, and it got 8 mpg on a good day. I remember we planned a camping trip to a location 130 miles away. We started figuring out the price of gas to go on a weekend campout with the camper (gas was around $1.79). Roundtrip was going to cost us around $60 or so, versus going in our car (27 mpg) and using a tent for $18. (I do have to say that when I see people driving motorhomes...I wonder where on earth they get the money for the gasoline that powers them down the road?.....same with big SUV's).

I made another move, this time from South Dakota to Wisconsin, in the summer of 2003. Now I know that a big difference in the price of gasoline between these two locations has to do with gasoline taxes. Taxes on gasoline are much higher in Wisconsin. In 2003, the price of gasoline in East River SD was hovering around $1.79 to $1.89 (possibly a little higher). The price in Wisconsin was hovering between $2.07 and $2.19.

So...what I sometimes ponder is how a gallon of gas can jump in price from $1.07 in 1999 to $2.29 in 2005. 6 years - 20 cents per year (although we know that it was more like 20 cents in days). Or....how about 39 cents a gallon in 1970 to $2.29 in 2005? 35 years - 5 cents a year. Doesn't look so bad over 35 years, does it? (Of course you have to remember that we were making about $1.25 an hour in 1970). (Oh...please remember that I'm depending upon my foggy memory...).

Well...anyway...I've digressed. I do suggest that people read the links I have posted above because it is really food for thought.

I guess, based on the math for the past 6 years, and the fact that we are nearing the "Oil Peak"...I better start planning for $2.49 by 2006, $2.69 by 2007, $2.89 by 2008? Of course there have been predictions that gasoline will be $3.00 a gallon by December 2005. Posting this will give me a chance later to see what transpires.

In conclusion, I look at our USA lifestyle and think...wow...there's major change headed our way. I can already see that the cost of energy is increasing the price of food at the grocery store.

S~