[Vision2020] The Price of Gas

[Donovan Arnold]

Mr. Harkins,

Yes, the gas price at the pump is a problem. But it is not the costs of 
mileage that hurts us the most. It is that costs go up for everything when 
oil goes up. Think about how a product is made and gets to you and how much 
oil it uses.

The product might be made out of oil, like plastic
The product in made in a plant that uses oil for lighting and energy to run 
the plant
It is wrapped in plastic made out of oil
It is shipped on a boat to the US that uses oil to get here
It is then loaded on a truck that uses oil to get the store
The store then uses oil to light the building
You then use oil to go to the store to buy the product
THe workers use oil to get to work and live
The computers that manage the product use oil

All these steps use oil and the cost of making and the costs are pasted on 
to the buyer.

It is these factors that drive prices up on everything. The $15 at the pump 
per month is not the major problem for the majority of people. It is the 
cost of everything going up at once that is the problem. What is worse is 
that right now there are no clear and affordable alternative to oil. Our 
technology in this area has been suppressed largely in part by oil 
production companies.

Take Care,

Donovan J Arnold


>From: Jeff Harkins <jeffh at moscow.com>
>To: vision2020 at moscow.com
>Subject: [Vision2020] The Price of Gas
>Date: Mon, 11 Apr 2005 20:31:04 -0700
>
>I was thinking about the price of gas today (I had to fill up my gas cans 
>for yard duty) and the sticker shock really hit - for a moment.  Hey, it 
>was $12.50 to fill up a 5 gallon can.
>
>Having been raised in Dallas, I recall that gas was selling for as low as 
>.179 per gallon in the early 60's.  In 1964, I recall the price was about $ 
>.199 per gallon.  Just for fun, let's calculate the price today, if the 
>average inflation rate was about 6.5% per year.  I was surprised - if you 
>invested $ .199 in a savings account in 1965 and held it there for 40 years 
>(2005) - compounded at 6.5% annually, the amount you could withdraw would 
>equal approximately $2.48.  Interesting huh?  Guess we have been getting a 
>pretty good deal for the past 40 years.
>
>S0 just how much will the gas price increase affect a person.  Assume that 
>you drive about 12,000 miles a year.  Also assume that you drive a vehicle 
>that gets about 15 miles per gallon. This means that you will use about 800 
>gallons of gas.  The price is up about $1 since the first of the year.  If 
>it remains at about $2.50 per gallon, it will cost you about $800 more per 
>year. Under these assumptions, you will spend about $2,000 for gas for the 
>next 12 months. Hmmm -   food for thought.
>
>
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