So here we have Libya and Saudi Arabia, two very different countries that both produce enough oil for each to export a fair amount, and both are in the news these days. Libya, the lesser of the two when it comes to oil production, has been run for some 40 years by a raving lunatic with serious fashion (and reality) issues. The Kingdom of Saudi Arabia is run by a very large royal family that I’d swear all look exactly alike.
Libya is in the midst of a rebellion/civil war these days that has caused the price of oil to rise. Libya is beset by what is termed, in the oil game, “above ground factors” – that is to say, people. Personally, I’m all for rebellion in Libya. It’s high time they boosted ol’ Mummar right off the longest dock in Tripoli. Do NOT make us send in the Marines. Again. But above ground factors are just that: Stuff we cause – and can fix – ourselves.
The Saudis are up against a far more solid wall: Below ground factors. As their production falls, they might do everything they can and still they may not be able to maintain their current level of oil production in the years ahead, let alone increase production to make up for the shortfall in Libya, or anywhere else. They day they admit that publicly, if they ever do, will be a red-letter day for oil. And a bad day for the rest of us.
I saw a wonderful quote today about the price of gasoline. The writer said the price of gasoline is not set by what it cost to produce, but what it will cost to replace. Wow. Great quote there. So look for the price of gas to go up. Maybe a lot. A friend of mine that owns a gas station said today that he expects to see four-dollar gas by the end of March. And that’s a full two months before the traditional start of the North American Driving Season that starts on Memorial Day weekend and runs through Labor Day weekend. Will we see five-dollar gas across the US this year? My Magic 8 Ball says “OUTLOOK GOOD”.
So what are you going to do about it? Don’t bother with any sort of boycott or “gas out” you may hear about. They don’t work. Even if you don’t buy the gas, someone else will. It’s a global commodity. And please don’t go and protest the price of gas at your local gas station. It’s not their fault. Often, it’s not even their gas. They just sell it on consignment, and make very little, if anything on it.
Do you really want to protest the high price of gas? Then you’re going to have to get proactive and seriously radical. You’re going to have to think outside the box, break all the rules and answer to no one. You’re gonna have to be a loner, march to your own drum and make a statement.
You’re gonna have to ride a bicycle.
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