As someone who has worked for the leading Canadian energy company for the past five years, I've constantly been hassled and harassed by consumers in relation to oil prices and specifically, gas prices. Hearing complaining and whiny customers is a part of my sad, (almost) minimum wage job.
The main question I'm constantly peppered with? A predictable "why are gas prices so high?" Firstly, I must admit that I have never concerned myself with the price of gas. While I do drive, I'm one of the few who don't view it as a necessity. In fact, I only use my car four months out of an entire year and it is only one form of transportation that I use during this time. The remaining eight months I rely on my legs and local transit.
Enough about me and why I'm so great. The real issue here that is claimed to justify this rise in oil prices is demand. I took a second (literally) to look into this in a Google search and was bombarded with information on demand changes and statistics on oil. I read that from 1965 to 2006, oil consumption increased by 168% overall. In comparison to other consumption increases of other energy products, this was more than reasonable.
What caught my eye was the individual country/area statistics on oil consumption changes. I was delighted to find that Canada wasn't even significant enough to list. What surprised me was China's increase in oil consumption, an outrageous 3328% from 1965 to 2006! Moreover, China actually accounts for 76% of the total world increase in oil consumption (total world increase at 168% if you forgot already). This is in comparison to total Asia Pacific at 15% (still outrageous but I'd hate to be picky), South and Central America at 5%, and the U.S. at 2% (FYI: I rounded the percentages UP).
This increase in oil consumption is seriously displaced. I can only hope that Saudi Arabia's call for a summit between oil producing and consuming countries will recognize that not all countries are responsible for this so called "demand". Even with this increase, the Saudi government actually published a statement in Tuesday's Toronto Star claiming that "[t]he increase in prices isn't justified in terms of market fundamentals".
In my personal experience, I haven't seen a significant demand or consumption increase in Ontario at any of the locations I worked at. It pleased me to also find that Canada was not important enough to be listed as a main contributor to the increase in consumption. The main question that plagues me then is why we are left to pay for demand that we didn't significantly contribute to?
Either way, currently our gas prices are up and people are beginning to abandon the glitz and status that apparently only a truck or SUV can bring, and settle for smaller more efficient cars ...or at least that's what GM asserts. But that's another topic for another day.
Until next time
Sources for this blog provided by:
Toronto Star, Tuesday June 10, 2008. "Pressure rises to cut oil prices" pgs. A1 & A21
http://wolf.readinglitho.co.uk/mainpages/consumption.html
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5 comments:
As an environmental science major, I might be the only one excited about the rise in the price of oil. Like you I’ve noticed that a lot of people are whiners, but no one cares to do any research. Gas prices are artificially low in Canada and North America as a whole. We should probably paying more than twice as much, like most Western European countries are. Furthermore, as far as the rising price of gas, if you take inflation into account gas prices have risen extremely little, especially given that demand has increased so much.
Secondly, people need to stop complaining because it’s only going to get worse. If we haven’t yet reached it, then we’re quickly approaching the point of peak oil production, once peak oil production begins to decline, THEN you’ll see a spike oil prices. This is why it’s so important for Canada to take a strong look at future energy concerns. More investment and research needs to be poured into the energy and transportation sectors or we’ll quickly find ourselves in an even worse economic condition than our slumping economy today.
As far as consumption changes, you have to remember that has been surviving on oil, gasoline and gasoline dependent transportation far longer than countries like China. The reason China’s consumption rates have risen so astronomically is because private vehicles for the average Chinese person has really only been a phenomenon of resent history. Many can still not afford such a luxury. Moreover, China’s increasing use of oil is aggravated by their population of roughly 1.3 billion. It doesn’t make sense to say that it is the countries like China who should be paying the increase in oil prices. It’s punishing them for their countries growth. When the industrialized countries of today’s world were in the process of growth, these types of restrictions were not place on them. Even though China has become the world biggest polluter, the transition of this country has arguably been far less detrimental to the environment and far less wasteful than transitions of the past.
This isn’t to say that I think China should get away with destroying the environment. I just think North America as a whole tends to be complainers and blame our problems on others. The rising gas prices are something that most countries are going to be affected by. Canadians and particularly our government needs to be proactive (even though we’re lagging FAR behind everyone else) in terms of environmental issues and especially the energy crisis.
From Carolyn, gas prices are high here but what about the price of a bottle of water? Don't hear too many people bitching about that yet the price of water is higher than fuel. Demand is high here and even though we didn't make it on the list but Canadians are known to for their demands on oil consumption. Maybe higher prices could curb that demand somewhat and make us more aware of the environment and the damage we are doing to it. Somehow l don't think so. We are an arrogant breed of people who needs a lesson on conservation. Demand equals high prices and if the demand was not there you would think prices would be lower but look elsewhere and compare gas prices to what we pay and stop all the bellyaching as we don't pay a fraction of what other countries pay. Oh and by the way stop stealing gas as it also drives the prices up at the pumps and leads to pre-paying at the pumps which in my mind is a very good idea. Other countries are doing it so maybe Canada should step up to the plate and make all gas stations pre-pay which might help with the gas prices. Might stop some jail time for offenders who abuse the system and think its okay to steal gas. Think about it, you steal gas you go to jail which now puts demand on our correctional services. Future blog maybe!!!!
The only reason gas prices are so high is commodities traders are driving the price up. Then they turnaround and make big profits on the big price swings. In the meantime big oil and the government
Pad there pockets, and the little guy takes another one.
Who do you think...
The difficulty with most consumers is that they don't think of gasoline and other petroleum products as a want, they believe that oil is a need. These people need to get off their couches (Perth County's children obesity rate is at 46%).
The Standard cost of living is going to continue to rise as the developed nations continue to increase their land taxes, wage taxes, WSIB premiums, pension requirements, and allow for unions to bombard companies with demands of ridiculous outcries for raises and job security.
The only security we have is that everything is going to cost more, sorry.
Not that I am here to comment on Unions, I believe they have a time and a place, but take a look a who makes the most vehicles in the world?...oh right, Toyota! How many unions do they have? Roughly 98% less the GM (this is a rant, not actual fact)..and do their employees pay for gas? Yes they do, and they still have jobs because they are not demanding a BUZZ idea of 4% increases.
The problem I have is not the cost of gasoline, but the cost of the environment that the continued use of more and more petroleum is doing to the world.
We are lucky, being on the North Western Hemisphere, because I tell you, I wouldn't want to live in a country next to China in 10 years. Their population is going to be larger then 6 out of 7 continents combined, of which 60% of them will have access to a vehicle and therefore be burning the oil, without any type of environmental protocol. A war is almost required to slow this down. Oh wait, wasn't that the purpose of Iraq.
Nope, I am wrong, something about big weapons hidden and bombing children s schools. Wow, I am glad I am a Canadian paying $1.42/litre of premium, but as long as I don't have starred flag on my badge I am doing alright.
Mind you, here in Stratford we pretty much beg for those yanks to head up here to spend their not so hard earned dollar on fancy things like the 'Stratford Shakespeare Festival' (in a bold, manly voice).
Jessica, loved it. We need your stuff in our newspaper. E-mail me if we can use your stuff? brent@ynweekly.ca
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