The price of gas is falling but don't celebrate yet

gaspump01_small  People across America are rejoicing as gasoline drops below $4.00 a gallon. Most people believe that the drop in gas is a direct results of their move to conserve fuel and that is partly true. Another reason why fuel prices have dropped is because we are coming to the end of the driving season and the price of gas always drops around this time.

So how much can the drop in price be attributed to Americans conserving fuel and how much is do to the normal fluctuations in fuel prices? The experts may know but I doubt the lay person will have access to this information. The real test will be next spring when the driving season begins. Will gas prices start to climb over $4.00 again or will we continue to reduce our fuel consumption and help to drive the price down further? And if we the consumers are able to conserve fuel and affect the market, what does that mean for the alternative fuel technologies? Alternative fuels and hybrid car technology are still in their infancy so the prices for these alternatives have not reached their peak price efficiency. 

So here is an interesting conundrum. If we remain focused on reducing our fuel consumption, the price of fuel will drop. It could be that if the price drops far enough, people will no longer feel the need to pay a premium price for alternative technology and our march to be free of foreign oil will stall.

Can the American public, known for their short attention span, remain as dedicated to reducing our oil dependence a year from now? Or will the oil cartel adjust their output and prices to a level that will make us become complacent once again? When gas first went over $4.00 a gallon, I noticed a marked change in the way people drove. Everyone was going slower, people would slow down and coast when coming to a red light, and they would accelerate gradually. Everyone was concerned about the price of gas climbing higher and was doing what they could to increase their fuel efficiency. But now only a few months later, people are once again zooming past each other. I think the average speed on my normal commute has increased 10-15 miles per hour.

So unfortunately, I think we are going to see Americans fall back into their old habits until the next big jump in fuel prices. The only way we are going to become free of foreign oil is to stay focused like a marathon runner. We need to continue to conserver, continue to invest in alternative technologies even if they are more expensive. Keep replacing our older cars with newer hybrid or electric technology. And most of all we need to keep badgering our elected leaders to help us diversify our energy sources,

 - Thomas Paine 2

 

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