Gas prices are skyrocketing like never before. Ruben Navarrette Jr. said that, “In the summer of 2008, I pulled up next to a gas pump off a major highway in Southern California where -- apparently, a few minutes earlier -- a recreational vehicle, which held more than 100 gallons, had stopped to fill up. The price was still on the screen: $500”. That is insane. I can’t image spending 500 dollars on gas to fill up my tank. That is almost as much as a monthly car payment! The average price of gas is estimated to reach somewhere around $5 before Memorial Day. I guess Americans are getting use to spending tons of money on gas but there has to be a solution?
Many of the presidential candidness are promising hope. For example, Newt Gingrich is promising lower prices. He also pledges that, if elected president, he won't bow before a Saudi king. But there might be a better solution than making empty promises! One solution might be Mexico. “Mexico is a major producer, and a friend and ally. The relationship between the United States and Mexico isn't perfect; tensions recur over immigration, drugs and trade. Each country has an annoying habit of blaming the other for its problems. But it's a strong marriage that will endure. Instead of chanting "Drill, baby, drill," more of our leaders should be saying: "Hola amigo." The U.S. government should increase oil imports from Mexico. Not only is it better to deal with friends than adversaries, it's also a good way to help the Mexican government fund its war against the drug cartels -- a battle that is, let's not forget, fueled by another one of our addictions”.
Mexico drills crazy oil. They’re national oil company can make 12,000 barrels of oil in one day and could add up to 220 million barrels a year. I think America would much rather talk to Mexico and work with them than work with people who are hostile towards the US. And if we can get along with Mexico and work something out, gas prices would be looking a lot better!
6 comments:
I agree that the gas prices are insanely high enough to take a large amount of money out of our paychecks. People are quick to point fingers at the president for the rise in gas prices, but I think they need to consider congress, politics, the unrest in the Middle East, and the current energy policies. The republicans easily blame the Obama administration which can be a possible threat to Obama’s re-election prospects this November. Obama has been pushing for the repeal of US tax breaks that benefit the oil industries, but that depends whether the republicans will allow it.
Oil prices have been rising globally because of the strong demand not only from the US, but from China and India. This demand will only increase in time, which means more pain at the pumps for Americans. As for Mexico supplying US with oil, this might possibly work but it will not solve our dependency on oil. In addition, Mexico has declined in petroleum production which can hurt the US.
Though looking to Mexico for our gas solution is an interesting approach, it seems more effective in theory than in practice. For one, we have to consider the quality of gas that we would extract from Mexico. If Mexican gas is like that of Canada, then the costs of the purification process would outweigh the benefits of "cheaper" gas.
Additionally, I believe our need for gas in the Middle East is one of the few reasons why we still have good relations there at all. And most of all, we cannot be certain that referring our needs to Mexico will help improve our relationship with them.
If Mexico is a viable option, it would make sense to see if we could utilize some of their oil to temporarily bring down prices. But Katherine makes a good point when it comes to America's dependence on oil. Our focus should not be on finding new oil supplies, it should be on funding research and companies that are pushing renewable energy transportation. For we all know that oil is a non renewable resource and if we continue to search for new oil supplies then we are just prolonging our dependence and emptying our wallets at the pump. Automobile companies have already seen this and are working towards developing new cars that run on renewable energy.
It seems that the best option would be to pass a bill that, over the next few years, would take government subsidization to the oil industry and slowly shift funds to subsidize the development of more eco friendly cars.
Gases prices are very high and it is sad that it had gotten to this point. However, if this is a good solution to our problem then so be it. Unfortunately, how successful will it be and can it actually be enacted? Currently they are only possibilities and because of that who knows to what extent it will be successful or to what extent it could be hurtful. The thought is great, but how long can America keep it up?
I agree with Amy on her point about the quality of oil in Mexico. Crude oil ranges from sweet(high quality) to sour(low quality). The difference in price is quite substantial, with sour crude oil being cheaper because of the machinery needed to refine it. West Texas Intermediate oil is what is preferred in America since it is sweet while the lower quality Brent Blend is used more commonly in Europe. Therefore, it would be more economical for Mexico to export their oil to Europe instead of America, which shies away from Brent oil anyways. In fact, the Brent oil blends that we produce domestically is shipped out to other countries, which is why it will never substantially affect gas prices at home. However, Brent blend oil is still considered high quality despite the additional refining needed. Why the government allows oil companies to export oil from our country instead of helping to lower domestic gas prices is beyond me, but I guess I'll leave this issue to the experts.
While Mexico may be a viable solution for increasing gas prices and gas supply and demand, I do not think just this can be the solution to the gas situation. Furthermore, as others have mentioned, there are many factors to consider when implementing this strategy that may make it less effective. I also do not think simply switching to a new provider is the solution; the U.S. should try to rely less on foreign resources and harness its own potential, creating jobs and boosting the economy in the process. If a new, cheaper provider is found and gas prices decrease, less progress is likely to be made in such departments. Finally, the high gas prices have increased pressure on companies to create cars that are more gas efficient or that use no gas at all and have pushed consumers to save gas and use more environmentally friendly means of transportation such as carpooling or public transportation. Should incentives decrease, there may be less pressure to work on and design new technology that ultimately benefits the consumer, the producer, and the environment.
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