In the face of supply threats worldwide, oil prices peaked at $71 a barrel Tuesday, stirring speculation that average gasoline prices could rise as high as $3.50 a gallon in some parts of the country.
The ripple effect of a spike in gasoline prices is well understood by Americans, who may shorten summer vacations, opt not to travel and be forced to pay more for goods shipped by transporters also coping with higher fuel prices.
This latest hike in oil prices also reminds us of the nation's seemingly unquenchable thirst for petroleum and its resulting vulnerability to world market and political forces. The West's nuclear standoff with Iran and supply disruptions in Nigeria are key factors in the recent surge in oil prices. Add that uncertainty to ongoing refinery disruptions in the aftermath of hurricanes Katrina and Rita, as well as temporary shortages that can occur when refineries conduct routine maintenance jobs or handle unforeseen problems such as blackouts and broken pipelines.
One would think that high motor fuel prices would encourage Americans to conserve or make better use of mass transit systems. Despite paying substantially more for gasoline — U.S. motorists are shelling out $212 million per day more than a year ago — the U.S. demand for gasoline continues to rise, although slightly, according to the U.S. Department of Energy. Somehow, to use President Bush's words, the nation must rid itself from its oil addiction.
But that will require innovation from the private sector—automobiles that do not require petroleum fuels and well-designed mass transit systems that offer sufficient frequency and convenience so that mass numbers of riders will abandon their cars. That's easier said than done. America's love affair with the car is considered by many to be a birthright. It would take generations to give up that way of thinking.
But record oil prices and, in turn, record gasoline prices, must be viewed as incentive to change. Paying more at the pump is not a viable long-term energy plan. It simply renders the United States more vulnerable to geopolitical forces.