Saturday, May 05, 2007

Gas Budget

Lets see, what can I complain about this week. Oh yeah, the price of gas. Just a few weeks ago I was commenting on how it was going to restrict my summer travel because gas was $2.89 a gallon. Well, this week it is up to $3.15 a gallon. That's a 9 percent increase in just two weeks and I heard in the news that the price could go much higher by summer. The politicians are saying that Ethanol made from corn will reduce our dependency on foreign oil. But the problem with Ethanol is that it takes too much energy to produce. The net result is that we will not be paying any less for fuel in the future. The only solution is to increase the mileage that our vehicles get from each gallon. Unfortunately, congress is just starting to discuss legislation that will require higher mileage standards. The estimate I heard was for new standards to be implemented by 2018, roughly ten years from now. Can you imagine what the price of gas will be by then?

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