Sunday, April 01, 2007

An Exercise in Futility

How can people be so misguided?

Robert Taylor, of Barrie, Ont. wants to stick it to the big bad oil companies. His suggestion is that no body buys gas on Saturday. Wow, that is clever. This will send a profound message to the gas companies, staff down on Saturday but make sure and staff up on Friday as everyone fills up on Friday to ensure they have enough gas to make it through the boycott day. This idea is so ridiculous. The gas companies don't care when you buy gas as long as you buy it.

It appears that Taylor is not alone. Boycottgas.ca has a similar idea but slightly different approach. Their idea is for nobody to buy gas from certain gas stations for 30 consecutive days. But only a couple gas stations are selected each month. The hope is that the targeted gas stations will be so squeezed that they will realize the power of the consumer.

What these people don't realize is that gas prices are set based on supply and demand. The ONLY way to drive gas prices lower is to reduce the demand, not simply shift it. Rather than not buying gas on certain days or from certain companies simply reduce your consumption and don't drive. The trouble with this solution is it requires personal sacrifice, sacrifice that people will not make. What Taylor and his ilk do not realize is that consumers are fine paying high prices for gas because it means that they can maintain their lifestyle. Until people are willing to sacrifice their lifestyle gas prices will continue to rise.

My suggestion, buy shares in the oil companies, drive an SUV then cheer every time gas prices go up!!!

7 comments:

Blackstone said...

High gas prices decrease demand thereby decreasing harmful emissions.

What a dilemma. Sticking it to the oil companies or saving the planet...

Anonymous said...

Blackstone do you really believe that?
Demand is a whole lot different than need and we need gas.

Lemon said...

IS there no end to the stupidity of the left.
I got a resume today from a candidate who proudly recorded their participation in a "Global Warming" organization that trys to communicate the same to the public.
Roundly filed.

Anonymous said...

I think you're being overly simplistic. Oil prices are not based on "supply and demand". Fossil fuels are a monopoly in which all companies collusively collect a bundle of cash from us, the hapless consumers who need to get to work.

The fact is that irrelevant shit that happens in Third World Iran, changes the prices of gas that has sat in oil barrels for several months down the street at my closest gas station.

That isn't supply and demand. That is gouge and control. The proper way to control oil prices would be to nationalize our oil reserves in Alberta and provide employee discount pricing like Venezuela does.

Biebs said...

Adrian...

You do not need oil to get to work. Ride a bike. Move close to work and walk. There are alternatives but they require you making sacrifices. If you are not willing to make the sacrifices then don't complain about paying.

Also, you lost all credibility when you used Venezuela as the model that Canada should follow. The last thing we need to do is use Chavez as the model ruler.

Anonymous said...

biebs,

Actually in my line of work, a bicycle is not an option. I am obligated by term of employment to own a vehicle.

It is not about sacrifices that I am "complaining" as you put it. I am pointing out that oil is not subject to free market capitalism, as is suggested by the blog author. Oil is currently owned and run by a powerful oligarchy that charges whatever it likes.

And I did not, actually, lose any credibility by citing Venezuela. While Hugo Chavez is not a role model, the nationalized oil company is. If you look at other third world nations in Latin America who have sold their nationalized oil, like Argentina, they are far, far, far worse off for it. Companies who wish to benefit from membership privileges in Mercusor.

If Canada publicly owned our oil reserves, we could provide a cheaper fuel source to Canadians, and remove foreign oil dependence and the way that it affects our entire economy.

It is non sequitur to say that because I approve of nationalized oil concerns, that I approve of Hugo Chavez. That's illogical.

Biebs said...

Adrain...

"Actually in my line of work, a bicycle is not an option. I am obligated by term of employment to own a vehicle." -
Then get a new job. My point is that you always have a choice and there are always options. No one has a gun to your head telling you to buy gas or die. If you are that unhappy with gas prices then make changes to your lifestyle so you don't need as much gas.

"I am pointing out that oil is not subject to free market capitalism, as is suggested by the blog author. Oil is currently owned and run by a powerful oligarchy that charges whatever it likes."
Actually, the "powerful oligarchy" can not charge "whatever it likes". They can only charge what the free market is willing to pay. If what you are saying is true, then why doesn't the "powerful oligarchy" charge $500/bbl or $10/litre of gas? They don't because the market will not allow it, people will stop buying gas at that price. Thus the price is driven by the free market. Just because there is an oligarchy that supplies the product does not mean that they charge whatever they want.

"If Canada publicly owned our oil reserves, we could provide a cheaper fuel source to Canadians, and remove foreign oil dependence and the way that it affects our entire economy."
Actually, the provinces do own the oil reserves. They sell the rights to companies to explore and extract the oil. Canada tried a national approach to oil it was called the "National Energy Program". In case you are not familiar with the history of the program there is a very good reason why it is not currently in place. It doesn't work!!!

"It is non sequitur to say that because I approve of nationalized oil concerns, that I approve of Hugo Chavez. That's illogical."
You didn't suggest that you approve of nationalized oil concerns, your statement was "The proper way to control oil prices would be to nationalize our oil reserves in Alberta and provide employee discount pricing like Venezuela does". Using Venezuela as the model by which Canada should follow does suggest that you approve of Chavez as it was entirely his idea to nationalize the Venezuelan economy. If you don't agree with
Chavez then don't use him to support your idea.

Thanks for the engaging discussion!