The Myth of Increasing Gasoline Supply - Essay Example

Gas prices have been one of the hottest topics this political season, with nearly everyone blaming each other for the rises in commodity pricing.  Everyone thinks they have the magic bullet, the solution that will cause gasoline prices to drop.  One of the most dangerous of these is the idea that increased production will decrease the cost of gasoline and that drilling should be increased in places such as Alaska.  The idea that this will have a long-term impact on gasoline prices is simply ludicrous, and the only way to guarantee a lasting drop in gasoline prices is to reduce consumption and use of alternative fuels.

Thus, if one examines the rules of supply and demand, increasing demand and a finite supply will always eventually lead to price increases – a temporary increase in supply may alleviate prices to a small degree, but even this may be minimal because speculators will always be able to buy high and sell higher, as the world supply is still known to be finite.  The only way to reduce gasoline prices is to reduce dependency – reduce demand because supply is impossible to control.  This can be done through electric cars, alternative fuels, and conservation, eventually building towards a society that does not rely on oil at all, because we know it will eventually run out.

            The myth that a temporary increase in supply is good for gasoline prices simply does not hold.  Quick fixes like this will never work – to address this problem, we need to fundamentally change the way we consume oil.