Tuesday, December 13, 2011

Gasoline Devours Record Dollars In 2011

The addiction to oil is getting more and more expensive and more and more destructive to our economy.  Running the family car on gasoline never cost more than in 2011, leaving less money for other goods and services, thereby lowering demand and growth . 

Cumulatively Americans spent a record $448 billion on gasoline or $100 billion more than in 2010, according to the LA Times.  See www.latimes.com/business/la-fi-oil-riches-20111210,0,6324648.story.

Though oil prices in 2011 did not reach or even approach the daily record level of $147 per barrel, oil prices on a rolling 12 month average basis have been at record levels.  Oil has consistently cost between $100 to $125 per barrel this year.

America's national and economic security has an oil knife to its jugular.  The answer should be an urgent program to rapidly accelerate the deployment of natural gas vehicles, electric cars, and biofuels. Small progress is being made, but it is not fast enough or big enough to remove the knife from Uncle Sam's throat. 

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