Above, is where our money goes.
Costs of Crude Oil rise, and so does the price at the pump. Makes sense, right?
While companies like Exxon Mobile don’t exclusively set these prices on their own, they certainly benefit when the market tightens. Last year CNNmoney.com announced Exxon’s profits surged 69%, raking in $10 Billion USD in the first quarter of 2011.
If you’re like me, your blood boils for a slight moment. Why do we allow so few people, to get so rich off something that everyone needs in today’s world?
Of course, some of you want to answer this literally.Yes, the crude oil market operates like all markets do. Governed by supply and demand. There is an ever-increasing amount of global demand/dependence, and a perception that supply is diminishing.
This area of global perception is a big part of the problem.
Whether or not we’ve actually produced more than half of our crude oil resources, the market indicates we think we have. Check out some recent headlines:
“The age of cheap fuel is over: IEA” abc news
“Is Peak Oil Behind us?” New York Times
“Why the Oil Crunch May Grow Worse” LA Times
“Why the Decline in World Oil Supply Will Be Faster Than Anyone Expects” BusinessInsider.com
Even if we haven’t produced more than half of our crude oil resources, we sure think we do. This attributes to the 67%/gallon we pay at the pump.
So what do we do? How do we lower gas prices?
Simply said, we need to focus on the larger problem. The energy problem.
As a global society, we should maintain more control our markets. Since the energy market is governed by our demand, this is actually possible. It will require effort on an individual level, and a much, much larger scale.
A global energy problem, will require a global collaboration. Scoping in on sustainable energy, consuming smarter, and generally thinking about the “big-picture” in everything we do. This must be at the forefront of our minds.
At an individual level, we can help by lessening the demand for conventional gas. Drive less, call your congress representative, and actually make an effort to change the way you interact with energy. Even if everyone doesn’t do this, at least you will save a little money in your personal budget.
Eventually, the price of gas will drop. Until then, let’s focus on ways to lower the cost of energy for those of us who need to use it.