Proposed National Gas Plan

Now for my proposed gas plan to jumpstart America into decreasing oil consumption, thus boosting supply and lowering gas prices.

First, the plan will need a coordinated effort between the government and oil companies. I propose a JV between the two where the government offers future research subsidies for exploration once compliance is met.

The basis around this plan involves Gas Cards. Yes, Gas Cards. Every U.S. citizen with a SSN will be required to have one by 2008. The oil companies will undergo a major initiative to assist local gas dealers with installing the proper technology to read these cards, which will link up to a government run interface that stores all data regarding gasoline usage for every U.S. citizen. Yes I know, this requires the “T” word. Too bad, it’s time to move into the 21st century at all levels and we need to start using the technological advances we have at our fingertips for our Nations' benefit.

Once citizens obtain their Gas Card they will be required to swipe each and every time they purchase Gas. No card means no gas. A database will compile annual gas usage records and send an annual report to each citizen prior to the personal income tax deadline. From here, legislation needs to be passed that allows citizens with low annual gas usage to receive tax credits. Those with modest usage receive nothing and the excessive users will be hit with tax penalties. Additionally, citizens who drive gas efficient vehicles will receive additional tax credits. Once efficient vehicles are the majority on roadways, this credit can be phased out.

In addition, corporations and business will also need to register for Gas Cards to dispense to employees who use gas for business purposes. conjunctionion to the personal income tax plan, businesses will be subject to similar rules; however, adjusted for industry standards. Due to the complexity of the business tax end of this plan, the roll-out will get some extra time and be instituted on a voluntary basis by 2009 and mandated by 2010.

What does this plan accomplish other than the administrative complexity to set-up:

1. Oil companies can now put their excessive profits to work by actively assisting the U.S. in putting its arms around the oil crisis we face.
2. Those citizens who are actually being proactive in regards to decreasing gasoline usage will be benefited by tax breaks while those who guzzle will pay.
3. Initially, most of the tax credits received from low usage citizens will be offset by revenues generated from the excessive usage tax (credit legislation will need phasing structure).
4. The implementation of this plan will create a large amount of jobs for the economy required to set-up the system and maintain thereafter.
5. This plan also provides benefits to our immigration problem and border patrol. You cannot obtain a Gas Card without a SSN and without the card, no gas. Many illegals with have to file proper immigration documentation or be faced with seeking alternative transportation during their stay in America.
6. Last but not least, as we collectively work together under this plan consumption will decrease, supply will rise, prices will come down, and our reliance on oil as a Nation will slowly drop while we continue to research and introduce alternative fuel methods.
   
   Now, I know there will be plenty of folks upset with this plan, especially those who commute further than others – too bad. Move closer to work or find a job closer to home. Others should not have to suffer because you want to live in a big house way out in the suburbs and commute 100 miles to work each day.
   
   The above plan, of course, is a skeleton and has lotÂ’s and lotÂ’s of details to be worked out and data to be crunched. However, I believe the overall message is clear. We must start being accountable as a Nation for the issue at hand. That means every individual and every business needs to play a hand in solving this problem. Nobody is exempt. If we fail to seriously address this crisis with great focus and determination it will only continue to get worse, which will significantly effect our future generation.

DP

The Gas Crisis in America

I hear a lot of Americans moaning about gas prices but see little being done about it. Face it, we are our own problem. Let's take a simple issue to show this. There are many folks who are on this fix to find the 'lowest' gas prices to save a couple of bucks per week. However, let's look at the numbers we sacrifice to save this money:

- There are 204 million vehicles in America according to Miller, Leslie. Cars, trucks now outnumber drivers. Salon. 29 August 2003.

- Let's assume the average American will drive 5 miles out of their way for cheaper gas

- We can also assume the average vehicle gets 25 miles per gallon

- This means the extra 5 miles burns an additional 1/5 gallon of gas

- Now let's assume only 25% of Americans go the extra 5 miles for price savings

This leaves us with 51 million cars making the weekly 5 mile trek due to price sensitivity, which equals an incremental 10.2 million gallons weekly (assuming the average American uses 1 tank per week) and 530 million gallons annually.

Now in the scheme of things this annual figure is only 1.6 times the average U.S. daily consumption so it's relatively small. But the point is not. It shows we burn an extra day and half of gas as a Nation to merely save price watchers an approximate $200 annually. Since most feel good about their cost savings coupled with the fact that we are not a saving Nation, most likely those folks will drive additional miles to spend that money elsewhere while burning yet, even more gas.

Another prime example of our insensitivity to this issue is our buying patterns. It used to be that Americans would pick a day, possibly two, during the week to shop. Not anymore. People make daily visits to store only to pick-up a couple of items at a time. These visits add up beyond belief. Imagine if all shopping and errands were reduced to 2 or 3 days per household rather than 5 to 7? This reduction in gasoline usage would dramatically impact worldwide supply. Not too mention retailers who must react to sporadic consumer buying behavior, thus increasing the number of product shipments per week to ensure proper inventory levels.

Something so simple as limiting shopping days/visits could have a major impact on the oil industry.

The simple matter is, as we consume less, supply goes up. As a result, we can expect lower gas prices. So the next time you complain about high gas prices, take a good look in the mirror and ask what you can do to help mitigate the problem.

In part 2 I will reveal my action plan.

DP