Monday, April 23, 2012

The World Minus Cars

The price of gas in Thailand is well over 40 baht a liter. In New York the cost per gallon is close to $4 several petroleum experts are predicting $200/barrel by summer's end. That will push gas over $5 a gallon. Driving is already down from the heights of 2007 and public transit is booming in the cities. Suburbs without access to trains are cut-off from the malls by the price of gas.

Several years ago a writer proposed to sue OPEC since the true cost of getting oil out of the ground is around $15 per barrel

Sue them so the lawyers can earn 33% of the penalties and the price of gas will rise to cover the punishment.

So how do we combat the cost of gas?

By doing nothing, because if oil was ruled by the laws of supply and demand then the price would have fallen along with the driving miles, however oil has become a speculative asset and the investors will push the price until it reaches the bubble's breaking point.

$200 a barrel? $300 a barrel. $500 a barrel.

At this point there is no ceiling.

But at $10 a gallon we'll see a lot more bikes and more bikes meant less fat people and less fat people means better health for America.

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