Why gas in the U.S. is so cheap

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Another reason why mass transit here is awkward is that suburbias explosive growth was due to the automobile's popularity and dominance. In Europe, lots of cities and regions were built prior to the rise of the automobile, and public transit was a necessary component of growth. I think it will take $10.00 a gallon gas to seriously spur mass transit here.
 
I gotta think that one positive outcome of the high price of gasoline will be greater research into alternative fuels, electric vehicles, etc. Look at how we're now seeing a boom in hybrids, something that never would have happened 10 years ago. I'm looking forward to the day when I'll be driving my hydrogen-powered ST without a worry about the cost of fuel. :) Think it'll happen?
 
Just another note, anyone taking into consideration just how much longer the day will become having to use public transport. I have a coworker who lives 40-50 miles from the office, I think he spends about 4hrs a day commuting. I live about 20 miles from the office and I'm willing to bet it would take me just as long due to being further west, which would entail catching atleast one bus to get to the train. Though that's only my situation, I have alot of trouble dealing with that. Seems like alot of wasted time during a day. There's also a big "punk' issue down here as I'm sure there is in most cities.
 
Space,



I can say honestly say while I was working in Germany, I could travel by public transportation faster, cheaper, and easier than driving our vehicle we had to use.





Tom
 
It's not just the gas going into our cars that is driving up oil prices. Our country is a MAJOR energy waster in everything. Did you know making bottled water consumes roughly 17 million barrels of oil every year, not including transportation? Americans are going to have to learn they have to make sacrifices to control our energy consumption. We are so damn spoiled, I'm not sure it's possible.
 
Lasik, you are correct. Much of Europe was build-up, and out prior to autos. Suburbia in the US came largely after WWII and the advent of the 2 car family. We are very different than Europe, and it will take more than an equal price for gas to ($8/gal US is about equal) for us to move towards mass transit in a big way. There are many hurddles, both physical and social.



TJR
 
I'm looking forward to the day when I'll be driving my hydrogen-powered ST without a worry about the cost of fuel. Think it'll happen?
Click to expand...



No, I don't. Hydrogen will be incorporated and have the same price hikes as gasoline is currently having.



I don't know how everyone plans to get hydrogen, but considering that the us is entering the beginning of a "water crisis", and water seems to be a great place....I'm much more concerned about a water scarcity than a corn scarcity, though neither is good...hydrogen cars also put out water vapor, which is just as bad as Carbon Dioxide as a "greenhouse gas"...but if the environmentalists are going to push for an alternative, I like the one that defies them whilst helping me ;)



Checking google to see how much water it takes to make a gallon of ethanol, I found ads about how some illinois "eco-startup" company makes ethanol for a dollar a gallon without affecting the food supply....which would give us 1.50 to 2.00/gallon gas price equivalents again.



Since that still sucks, hydrogen might be the alternative, but I don't think we'll ever have to not worry about the cost of fuel.
 
No, that is not capitalism at its best, as capitalism relies on competition to keep the prices down, that 's part of the Invisible Hand system. Gasoline and Ethanol have no competing fuel, and they have guaranteed demand.



If there was competition, the government could tax the product so much that we'd still have to worry about fuel costs....I think that the answer to his question will, unfortunately, always be no.
 
I agree, should have turned on my internet emotions, however, this is a regular response/excuse to typical gas price abuse. I've read here on more than one occassion. I really don't think gas prices (currently) have anything to do with supply/demand.
 
Spaceman Spiff, no they don't. It is the devaluation of the dollar worldwide that is causing this rise...
 
The Oil Industry is different than other industries. Could you imagine if the World's airline companies had an organization like OPEC? OPEC countries collude to set World oil prices and decide together how much will be produced. In all other industries this would be illegal behaviour.



They purposely restrict production to allow prices to go higher. In the past, the US would put pressure on the biggest producer, Saudi Arabia, to increase their production, but I have heard nothing in the news about this happening lately. I think our relationship with them is not what it used to be, so we have little influence.



The main reason that gas is cheap in the US is because our taxes on it are low. Most European countries charge close to 50% tax on their gas. Poland's is 44%, for instance. The US charges 18%.
 

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