For What It's Worth
Last night, before going to see the midnight showing of Indiana Jones, I went to Barnes and Noble and decided to pick up some new books in hopes of stimulating my reading efforts. (read: I payed too much for books that were impulse buys.) The purchased comprised The Rise and Fall of the Third Reich, T. E. Lawrence's Seven Pillars of Wisdom, and a Winston Churchill biography. I seem to be going through a phase of interest in history.
Speaking of history, we're in a time of changing history. I read today that the price of oil has hit $135 per barrel. This translates to a gasoline price in Blacksburg of $3.89 per gallon. I hear that prices in the rest of the country are higher, which is not surprising, since this is a mountain town. Most people in the country are freaking out, surely buying nylon stockings and Eggo waffles for the coming apocalypse. Those who are seeking election are making sure that you know their detailed plans for lowering the cost of filling up your tank once they take office.
Actually, this is just our cheap living catching up with us. It would have been nice if it didn't catch up so quickly - quadrupling in cost over the past five years - but it's actually still relatively cheap. Back in 1922, a gallon of gas cost $3.11 per gallon, if you adjust the value of the dollar back then to match that of today's dollar. But compare the cost of gas to the cost of petrol. Europeans (at least those in the UK) are paying $5.79 per gallon. Honestly, we're paying exactly what gasoline is worth, finally. We may even still be underpaying.
The bottom line is, high gas prices are here to stay. I foresee one of two possibilities to deal with it...
For about two years, I've held the belief that the infrastructure in this country is totally fucked. Highway motorists consume 83% of all energy used for transportation in the U.S. (Source). Meanwhile, Europeans - who enjoy a better infrastructure with (a) more public transportation in general, (b) an effective train system, and (c) a friendly and forgiving attitude toward bicycling - use an average of only 17% of the gasoline that we use per capita (Source).
Therefore, the first possibility of dealing with high gas prices is to invest heavily in a reinvention of the nation's infrastructure. Similar to what Eisenhower did with the Interstate Highway System, only not assuming an infinite gas supply and not partially motivated by fear of the Reds. I'm moving to Pennsylvania in less than two weeks, and it's absurd that the only feasible way to so do is to drive. Why the hell were we so quick to abandon our railway system the moment the automobile came along?
The second and more likely scenario is the development of an electric car. Tesla is already making them, albeit at $100,000 a pop. Given the efficiency of gasoline engines and the cost of electricity, I'm guessing that charging up an electric car would cost a quarter of the equivalent gasoline requirement. That was a number I got one night as I was messing around with different figures. I wish I had written it down, come to think of it. But why is this the more likely scenario? It supports the good old capitalist drive for success via the introduction of a new invention. Revamping the nation's infrastructure would cost a fortune, and it would be virtually impossible for anyone to convince our leaders that it would be worth it.
Anyway, that's enough complaining and prophecy for one night. Time to study the story of Churchill, hero to future statesmen and drunks alike. (That reminds me - the "statesmen" bit, not the "drunks" bit - best wishes for Senator Kennedy and his newly revealed ailment. I hope he can pull through.)

