Mothers day........
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scorpio - > Mothers day........ -> Gasoline domino effect
Gasoline domino effect
Yesterday I spent with my kids. Both who are in their early 20's. They could not grasp the concept that the rising cost of living is directly affected by the cost of gasoline. I want to see who all believes my theory. Historically our country was founded by the agriculture industry. Basically the farmers. O.K. Now the farmers have to plant the crops. They need to use gas and diesel operated equipment to accomplish this process from start to finish. Then they have to ship the product to the market by gasoline or diesel operated equipment. The market has to mill the products or process it. Most of the machinery is either gasoline/diesel or electricity to run. This can go on and on and on but do you see what I am saying. With the price of gas so high it effects everything. Its a domino effect. So we are not just feeling the pinch at the pumps but its every where. Until it gets under control we are all going to have hard times. Our economy can not keep up with this rising cost and eventually the bottom will drop out. If it has not already dropped out..............What do you think?
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posted by scorpio on Sunday, May 25, 2008 at 03:52 PM
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posted by sandwichh on May 26, 2008 at 03:08 PM

The plastics case for their computer, ipod, wii, water bottle, car parts, etc., ALL made from petroleum products. That's oil and natural gas.

 

Petroleum goes up, it all goes up.

posted by ErnieCash on May 26, 2008 at 12:41 AM

You're 100% right, Scorpio. We all know that the essentials of life are food, shelter and clothing (well, there's sex but that's another blog) but in this country, energy is a real close fourth. First of all, it's a BIG country and particularly so if one lives west of the Mississippi. One could drive across the entire continent of Europe in less time than it takes to get from El Paso to Dallas or from Houston to Amarillo just in this state. It takes energy to grow crops, it takes energy to get them to market, it takes energy to process raw materials into finished products which then are shipped, using energy, not just to markets across this country but around the world as well. 

As unfortunate and as short sighted as the situation is, you may as well spell energy in today's society p-e-t-r-o-l-e-u-m. Gasoline, diesel, natural gas, jet fuel, kerosene - they all come from crude oil. Even the electricity we so often take for granted is produced in large part by generating stations powered by natural gas. The way of life we've become accustomed to is inextricably tied to oil. Another sad fact is that we've had at least thirty years to recognize and acknowledge that we're dependent on a finite source of energy and to *do* something about it and we have basically done nothing: nada, zip, zilch. Only in the last five years have we seriously begun to develop alternative energy sources we should have been researching years ago - at the least in the aftermath of the Arab oil embargo of the early 70's.

And BTW, the reason diesel is now more expensive than gasoline while it has historically sold at a lower price is that the diesel you're pumping now is, by federal mandate, low-sulfur or ultra low-sulfur diesel. Prior to federal rules mandating the low-sulfur variety, diesel used to contain around 500 ppm of sulfur. The diesel being delivered now is down to around 5-50 ppm sulfur which requires additional refining and, not surprisingly, adds to the cost. Cleaner air costs.

Besides, we had to know that sooner or later the good ol' government was gonna find a way to tax all that fresh air we've been sucking up for free!

Ernie

posted by bighorn on May 25, 2008 at 11:33 PM

Make it diesel for agriculture. And some natural gas for a few power units running pumps for irrigation. Gasoline ran out of favor for the industry back in the early 60's.

Notice how diesel is now about $.75 higher than regular unleaded lately? It use to be about ten to 20 cent spread, and now it has really jumped with the latest price hike. Makes me glad I don't own an F-250 burning the stuff.

posted by batman on May 25, 2008 at 10:28 PM

 I agree.  Throw in the federal deficit, consumer debt, housing crisis and the rising cost of living, something is going to break sooner rather than later. 

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