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Guzzling Gas?
By Daphne | July 23, 2008
Demand for gasoline is down. If the price for gasoline stays down it means that gas prices will decrease. Though if they decrease too much then people will stop doing what they are doing now - driving slower, taking public transportation, driving less or carpooling.
When demand is high, prices increase. When demand decreases, the prices go down. A prime example of this is 35MM film. Five years ago if you went on vacation you would probably buy a lot of film to capture your vacation memories. Now more people will make sure that there is enough space on your memory card for all of the moments that will be immortalized.
For people who still use film, the prices have decreased greatly for film and developing. Waiting to have your film processed is even a lot faster than before.
The decline in oil prices overall could be a good thing but also bad because many may go back to their old wasteful habits.
On the bright side it only takes about a month for someone to form a habit. It is possible that enough people have made the change only because it was financially disadvantageous for them. According to the Energy Information Administration, demand for gasoline in the United States has fallen by hundreds of thousands of barrels of oil from a year ago. During that same period, gas prices have been steadily increasing. Lower fuel prices would be better for te economy, but for the long term, renewable sources of energy would be best.
Topics: July 2008 |