$12 A Gallon

You can’t listen to anyone recently without hearing complaints about the price of gasoline. Mostly the talk is just frustration, but there are the odd conspiracy theories making the rounds and, of course, the blather of politicians. I was ready to write a “let’s get the facts straight” essay on gas prices, but Robert Samuelson beat me to it and did a fine job.

The situation is one of supply and demand, with supply being constrained by environmental concerns regarding ANWR, the Gulf, and other offshore locations. I have no special insight into the environmental concerns, but the fact is that the environmental restrictions make the price of gasoline higher than it would otherwise be. How expensive does gas have to get before the general public decides that the reduction in risk to the environment isn’t worth the price at the pump? In other words, how long can we afford all the environmental protection we’re buying?

I’m agnostic on the question, but I do wish people would quit complaining about the consequences of policies they probably favor.

BTW, my guess is that the “tipping point” will be around $12 a gallon.


2 responses to this post.

  1. […] Not $10 On May 1st, I predicted that the Democrats would not relent on offshore drilling until the price of gas at the pump reached […]


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