My friend Congressman DoRight just called. Remember him from a previous blog? He said he had some exciting news.
According to CNN Money (June 15, 2012), average gas prices have come down about 40 cents, or 10 percent, since their peak of near $4 a gallon. U.S. drivers will use about 133 billion gallons of gasoline this year. This price drop saves the country and its people $53 billion.
Even though Over a Barrel had called attention to the decrease in the cost of gasoline recently, I was excited to hear from him. After all, in today’s economy, where, without debate, can we find what is an imputed tax cut for residents of the U.S.? DoRight hoped that maybe the savings could stimulate retail sales and investment. I (nicely) warned DoRight that with a return to economic health in the U.S, Asia and Europe, continued tension in the Middle East and the higher extraction cost of oil resulting from drilling in shale and water, over time, oil prices (as many Wall Street analysts suggest) are likely to rise again.
I also asked him to think, seriously, about ways to open the oil market to competition, particularly related to transportation. We discussed several possibilities like initiating an Open Fuel Standard, increasing competition from alternative fuels like methanol, and significantly expanding the production of flex fuel cars.+