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by Jan Lundberg, oil-industry analyst
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05 November 2009 |
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The retail price of gasoline in the U.S. is extremely low, not just compared to the summer of 2008. Subsidies both direct and hidden create a true cost at least a few times higher than the visible price. The actual cost is paid largely through income taxes (such as for wars in the Middle East and domestic infrastructure), in the purchase of goods and services associated with "free" parking, and even medical care for car/fuel related mortality and morbidity. When the average gasoline price is $2.66 a gallon, according to news reports on the most recent Lundberg Survey, the message to the consumer is "Buy that big vehicle." |
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Energy and Survival 
There seems to be a consensus that the depletion of fossil fuels will follow a fairly impressive slope. What may need to be looked at more closely, however, is not the "when" but the "what." Looking at the temporary shortages of the 1970s may give us the impression that the most serious consequence will be lineups at the pump. Fossil-fuel decline, however, will also mean the end of electricity, a far more serious matter. 
It would seem that nothing is new under the sun these days when it comes to the good old USA. The state of Arizona -- anybody remember McCain -- recently gave the Canadian Denison Mining Company the go-ahead to reopen the Arizona 1 uranium mine near the Grand Canyon, with two more mining permits pending.