Gas is Still Around $2 Per Gallon. . .
bring you $2 gas and forget about BHO. He wants to bring
you $8 gas in line with what Enlightened Europeans
pay. But there is a way to fill your tank for about $2 per gallon
using the Fed Funny Money in your pocket, too.
across the border.
a growing number of Arizona drivers are doing, according to a March
20 article over at myfoxphoenix.com (see here).
willing to brave the Mexican banditos in the border towns
in order to do an end-run around the American banditos in Washington.
are so much lower in Mexico for a number of reasons, including government
price controls but the point to be taken is that physical
scarcity is not an issue south of the border. There is an ample
supply of oil. If there werent, the prices would be going
up everywhere, not just here.
There is plenty
of oil here, too. But the difference is the (note, not our)
government has done just about everything conceivable to thwart
exploration and development, creating a contrived shortage.
No one can say how much oil is in the ground (or under the sea)
if were not allowed to look for it.
Let alone extract
not our) government also imposes Byzantine requirements that
fuel in different parts of the country at different times of the
year contain different types and quantities of various additives
(such as ethanol oxygenates, a fancy-sounding way of obfuscating
taxpayer-financed giveaways to politically powerful agricultural
cartels) further bolixing up supply.
just gas there are multiple different types of gas,
each of which must be kept separate from the others in the pipelines,
tanker trucks and so on. This adds considerably to the cost and
not just mechanically. Because gas has a shelf life, the refiners
only produce enough at any given time to meet estimated short-term
demand. The differing requirements for different regional formulations
and additive packages put pressure on the refiners to make smaller
batches of each type, which can lead to short-term shortfalls if
actual demand exceeds projected demand. If a given refinery is making
Batch X, its hard for it to stop the presses and make some
more of Batch Y at least, until theyve cleared out
all the Batch X.
theres just gas.
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columnist and author of Automotive
Atrocities and Road Hogs (2011). Visit his
© 2012 Eric Peters
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