That puts us right back at "Supply versus Demand".
Mark my words, cheap fuel is the key to economic recovery, or it was in the old days. But sooner or later the lack of product, brought on by refinery slowdown will equate to shortages and higher prices, artificial but realistic nonetheless.
Coupled with the steep reduction in usage is the huge loss of tax revenue for Federal and Municipal governments. Remember, one of the major revenues centers of most governments is taxable fuel sales, now down over 20%.
No matter what, Governments, many already broke, will be forced to intercede and raise the tax on our fuel, but they will be cut short by a continued drop in usage as well as more fuel efficient vehicles.
In order to sustain their hemorrhaging budgets, they will seek other avenues or revenue related to the automobile, the likely sources being Toll Roads and a "Mileage Usage Tax", all very much already in the planning stages.
So with millions out of work, and no likely employment in site, and fuel becoming a uncertain, if not unreliable commodity, what a great time to start utilizing reasonable alternative fuels.
The Billions of tax dollars we squander on Ethanol have proven to be useless. Ethanol is expensive, consumes valuable resources like food, water and most importantly fuel to make it, with the end result being significantly lower mileage. It doesn't work.
Meanwhile, today Exxon announced a major initiative in Algae Bio fuel.
Algae Bio Fuel is closer to natural fossil fuels than apparently any other alternative fuel. It feeds and grows using carbon dioxide, and can be grown in plastic bags or brackish water in tanks, the Desert being an ideal locale.
So I suggest we enjoy the cheap fuel while it is here, although, likely you and I are like everyone else, cutting back. In all likelihood, in the not to distant future, the cost of gasoline will be hitting new highs, no matter what the economy is doing.
And when I say new high's, I am talking $5 or $6 a gallon US.
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