Today’s Headlines

Re first headline from NYT, the Energy Dept. is essentially saying that demand destruction (reduced demand) will reduce gas prices. But it’s important to note that this would be a short term fluctuation. The larger story is that worldwide crude oil production has peaked. That means it’s half gone and the part that’s easy to get at is way more than half gone. Therefore the basic feedstock of gasoline, oil, will only become more expensive over time, and gas along with it.

Peak-oil deniers point to oil company profits, speculation on the futures markets, and various short term blips (like the Nigerian rebel attack cited by the Times) while ignoring the real story, which is that nature is about to strongly curtail our energy consumption whether we like it or not. The geology of the earth does not care about anyone’s sense of entitlement. This will change everything about the way we live, work, and transport ourselves. No one, not even the militant pedestrian or bike rider, will go unscathed.

Everyone in transportation is assuming transportation funding is being secured in a vacuume. The fact is, transportation funding is competing with everything else in a nation led by a generation with a great sense of entitlement.

Transportation is competing with health care, and (ever) more money for seniors who won’t be around to experience either the improvement of the transportation system of its collapse.

Transportation, if funded by additional taxes, is competing with all the things people are used to buying for themselves that are becomming more expensive and less available. The tax burden is already high for those without special deals, as more and more people and interests get them.

Transportation, if funded by debt, is running up against the fact that the debts are too great to pay back.

While transporation funding is being discussed, expenditures on health care are soaring, pensions are being enhanced, and people are demanding subsidies for their McMansions and SUVs.