[Blogpinion] Making Cents of Lower Gas Prices

November 24 2008 / by joelg
Category: Energy   Year: 2008   Rating: 6 Hot

By Joel Greenberg

What Happened?

Gas prices have dropped to under $2/gal at some gas stations around the country. “It feels like the 1970’s, with people waiting in line for gas,” one observer says as she waited to fill up at almost half the price of what she was paying earlier in the year. But unlike the ‘70’s (or two months ago) there now seems to be plenty of supply.

So why are prices so low, almost two months after gas shortages in places like Atlanta, due primarily to Hurricane Ike? (Click here to read a twitter history of Atlantans and their search for gas.)

The simplest answer appears to be the low demand as a result of the slow down in the economy worldwide, according to the federal Energy Information Administration.

As Amory Lovins points out, we can lower our demand faster than Saudi Arabia can lower their production, although his idea is to lower demand with more efficient vehicles, not via a global economic slowdown.

Why is this important to the Future of Energy?

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