Tough. They are here to stay, for three simple reasons.
One, demand will not go down. In the future, high demand for gasoline will hopefully level off and eventually recede in the United States (due to a peaking of our economy, stagnation in our population growth, and maybe some tougher fuel-efficiency standards), but as we Americans so often forget, we are not the only country in the world. India and China are poised to develop such an insatiable appetite for gasoline that it will make our own petroleum gluttony pale in comparison. India and China have a combined population of over two billion, compared to the roughly 280 million who reside in the United States. If their economies continue to grow at the torrid paces that they have been for the last few years, not only will they develop economies that are greater than the United States’, they will also develop the middle class that is necessary to turn a country from a mass producer into a mass consumer. In fact, the middle class is already becoming prominent in both countries, but a middle class in Asia is different from our conception of a middle class here, in that in Asia, they still have far less purchasing power. That will change. The prospect of a billion cars rolling around southern and eastern Asia within the next thirty years should frighten anybody who is concerned about our country’s lack of an energy policy. Continue reading “Tired of High Gas Prices?”