[Az-Geocaching] A last word on Prices

William Noll wnoll at cybertrails.com
Fri Mar 11 12:05:49 MST 2005


            I can't believe what I read from some of you.

 

            The reason oil futures are selling for over $55 a barrel is
because SOMEBODY in the world is willing to PAY $55 per barrel for oil not
yet out of the ground (wherever it happens to be drilled). The world supply
of oil is tight. More people are using more oil. And it's gonna go to
whoever pays the most. The Chinese economy is booming, and all of that stuff
that you buy at Wal-Mart that's cheap and made in China has flooded that
country with a lot of cash. And they're gonna spend it to improve their
lives! Prices for oil, weld rod, steel, Portland cement, and lumber are
indicative of a world market that has demanded more from otherwise limited
supplies. 

 

            And government price caps? You're kidding me. There's already
enough government regulation just on making the stuff! If the government
starts regulating prices, they will also regulate supply. Anyone ever heard
of Medicare? That's how they do it with government / taxpayer supplied
healthcare for geezers.

 

            And what about summer demand. It's necessary for the companies
to raise their prices to discourage excessive use. Oil refineries are
operating at peak levels. There are engineering limitations as to how much
gas can flow through a pipe. And if any of you know about liquid,
mechanical, or electrical production, then you'll agree with me that running
your process at 'full power' is going to give you headaches. Eventually
pipes rust, valves leak, fuses blow. And then you have to shut the whole
thing down to repair it. Also, most of you will notice that the electric
companies do the same thing: they graduate the price per kilowatt-hour based
on total usage per month. APS charges X amount for up to 400 kw-hrs, and
then XX for 400-800 kw-hrs, and then XXX for over 800 kw-hrs. This
encourages economy on the demand side, plus discourages waste. 

 

            If gas goes to $5.00 per gallon, I'm willing to pay it. But I
will be the most conservation minded driver I can be!  You would do the
same. Check the air pressure in your tires. Minimize braking by anticipating
streetlights and traffic. Drive the most economical vehicle in your fleet.
Combine trips. Any others? There are thousands of ways!

 

            And it should be mentioned that conservation in small amounts
does go a long way. Consider how tight gasoline supplies in Arizona are. If
everyone reduced their personal gasoline consumption by 10%, there would be
a gas glut in days! (And boycotts don't work. You EVENTUALLY crawl back for
your gasoline fix!)

 

Bill

 

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