Rising Gas Prices Is Not Good For Our Economy, Business & Real Estate

Some folks believe our high prices at the gas pump can be blamed on the big oil companies. Wrong.

Rising prices in free markets result from an increase in demand and/or decrease in supply. Supplies of oil have been reduced by environmentalists’ demands that no more oil wells be drilled, that no petroleum products be refined and that no oil be transported. Supplies of oil have been taken off the market by OPEC (which has a monopoly), not the big oil companies. Producing, refining and transporting oil has become more expensive, at least in part because of pressure from environmental activists.

Demand for gasoline has increased to some extent by growing economies of China and India, and others, and to some extent by wars in Iraq and Afghanistan.

The desire for safety and convenience causes some people to prefer larger, heavier, safer cars, which use more oil and gas.

The global warming movement criticizes the use of petroleum products, causing additional costs in taxes, regulation, carbon permits.

Let's discuss this as business people and Realtors, asking our policy and lawmakers to plan and focus on getting us better supply of oil products.

Posted by Harrison K. Long, Explore Properties Group, Irvine, CA, April 28, 2008