GUSTAV & GAS PRICES

Today was to have been the first day of festivities for the Republican Party at their convention.  John McCain, sensing that throwing a big party while New Orleans may get flooded again, wisely scrubbed most of the activities for the day.  Reflecting on this, I am reminded of my cross country trip in a Budget rental truck back in 2005, when Hurricane Katrina caused so much damage.

Yes, it was at this time three years ago that I made the fateful trip in my rented supply wagon on the great trip to the West.  Fortunately, I was joined by a friend for this expedition.  To protect his hard earned reputation among the landed gentry in the greater Nashville metropolitan area, I will refer to him as Hillbilly Jim, for his resemblance to the former professional wrestler, and radio personality on Sirius Outlaw Country.

As Hillbilly Jim and I made our way west, stopping every 150 miles for fuel (because our Budget Truck had an outstandingly large 50 gallon tank), we were impressed with how fuel prices increased by 25 cents/gallon each day we were travelling!  Yes, we instantly understood how unstable geopolitical conditions, combined with offline oil platforms in the Gulf of Mexico could mean fuel prices would increase by such a large amount faster than a truck could travel cross-country.  It’s easy to understand that gasoline inventories would instantly vanish through the entire supply chain as soon as Hurricane Katrina made landfall.  By the time the trip was complete, gas prices had soared from around $2 per gallon up to $2.75-$2.99.  A relative bargain, compared to what we are paying now, but considered a high price at the time.

AS CNN (Communist News Network) and FauxNews switched to all Hurricane Gustav, all the time, coverage; I had time to reflect on the last time New Orleans got smacked by a storm, and what it meant to our wallets.  So far, gas prices seem to be holding steady.  But wait, only the oil platforms have been taken offline, it’s not like we have unstable geopolitical conditions, right?  Wrong!  BP shutdown their oil pipelines in the Republic of Georgia since Russia invaded.  But alas, so far gas prices seem to be holding steady.  What’s the difference this time?

My personal theory is that since we are in an election year, the oil companies will try not to gouge us as badly this time around.  Congress may enact that windfall profits tax they bring up for debate from time to time.  Also, Americans are starting to lose patience with fuel prices, and we may finally get of our collective rear ends, switching to alternative fuels.

We will see very soon if prices hold or rise to as yet unseen new highs.  Some economists advise we brace for $5 per gallon gas.  If that happens, I say, bring on the electric cars.  Or, if my prediction bears out, keep on keepin’ on.