World Gas Prices - Getting Things Back into Perspective!
by Dr. W. David Currie

I laughed out loud this morning thanks to one Senator John Kerry.  Yes, the same Senator John Kerry who drives a large SUV that resides in his garage but belongs to his family rather than to himself.

Last week, a friend mentioned that he wanted to attend his daughter's graduation, but might not be able to as George Bush has raised gas prices too high.  I don't think many Americans would be impressed by an individual attempting to impress his political agenda on his daughter by tainting her graduation day...

So, I asked him in what sense he felt that George Bush had done anything to raise gas prices.  Was, for example, George Bush also responsible for the large increase in beef prices that is helping both of us make more money as beef farmers.  His response was that yours truly does not know how bad the economy is because George Bush has given me too many tax cuts.  Well, to be honest, I'm not complaining... but remember, my family spends very little money "re-buying" or fixing things... because we buy American the first time.  My wife's response to our whining acquaintance was to tell him to "suck it up."

This morning, while visiting Oregon, John Kerry blamed George Bush for high gas prices in America.  Oops, one more person caught totally unaware of how the world economy works.  Gas prices are set by the demand of the world market.

As most Americans know, manufacturing jobs are moving to China; China is the fastest growing economy in the world and will supersede the American economy as the world's largest economy before the year 2040.  If you don't believe this, look to see where things are manufactured the next time you are shopping in Wal-Mart, Target, or K-Mart... nearly everything for sale is from China (by the way, it is never too late to start buying American-made).

India is the fastest growing information-technology based economy.  With rapidly growing economies and incomes, nations like China and India are using fuel at rapidly increasing rates.  That means that much of the oil produced by the oil-rich nations, oil that was previously available to be shipped to America, is now being shipped to other countries where demand is increasing.  The oil goes to the customer willing to pay; and Americans are no longer the only ones willing to pay big bucks to import oil.  Agreed, cheaper gas would be attractive, but I am not willing to move to Venezuela to get it.

This week, we have been paying in the neighborhood of $1.85-$1.90 per gallon for gas in the Bristol, Virginia region.  We have to buy gas for our tractors, trucks, and other farm equipment and, sure, I whine a bit.  I also understand that many were paying somewhat higher prices in other regions of the country... the national average reached $2.06 per gallon.  But are our gas prices really as high as we seem to think they are?  Here are a few eye opening numbers... recent approximate gas prices in some other countries (and continents), in US dollars per gallon.  President Bush, are those who are willing to blame you for high gas prices also willing to credit you with what our very low gas prices relative to much of the world market?