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