The Need for Gas Far Outstrips Supply
Adam Smith, the founder of modern economic theory, spoke of the law of supply and demand in his book “The Wealth of Nations”. The idea is simple: the higher the demand, and the lower the supply, the higher the price for a product will go. Today, we are seeing that in the case of gasoline prices. Some people argue that America just needs to build more refineries and drill in more areas where we know there’s oil, and we’ll be fine. Oh, if only it were that simple.
The problems with that simplistic view are numerous. First off, there have been no new refineries built in this country in decades! It’s the old problem: NIMBY – not in my backyard. Everyone wants the gas; they just don’t want the refinery anywhere near them. Plus, with environmental groups fighting any new refineries tooth and nail, that makes it doubly tough to get any built. Next, there’s the issue of more drilling. Here again, many environmental groups (and others) don’t want more offshore drilling; or drilling in the nature preserves of Alaska.
Yet, even if those options were available to us, they wouldn’t solve the problem. First off, it would take years to get the drilling rigs in place, to get the refineries built, and for production to reach maximum. By then, gas will be well over five dollars a gallon! But, there’s even another reason why gas prices will continue to spiral upward; and it goes back to Adam Smith’s law of supply and demand. Right now, China, India, and other nations are experiencing an explosion of their own middle class. As a result, more and more cars are on the road, and all need gas. Even if we all switched to hybrids, and reduces our demand for gas by half – the price would still go up!
That’s where alternatives come into play. The website www.hydrowaterpower.com has a full listing of the technologies available today to convert your car over to running on water power! The devices are cheap, easy, and they’ll improve your car’s operating efficiency, help to keep the engine clean, and boost your mileage enormously. Check out all that they have to offer; you’ll be glad you did. When you factor in the concerns people have about Global Warming and the future of our planet, water technology is truly the way to go. A car running on this technology produces nothing but water as its waste!
So, don’t be lulled into a false sense of security by a brief dip in the price of gas. Instead, think back over the past few years, and remember how prices have continued to climb steadily up. We once thought three dollars a gallon was as high as it would go, and now four dollars is common across the nation. How will you afford to fill your car when the price hits five dollars? Think about it, and consider your alternatives.
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