RIGHT or WRONG? Gas prices

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Big oil companies are drilling, creating more jobs. But the price of gas still is rising—as are property values in areas near huge petroleum exploration. What gives?

More drilling may reduce gas prices and reduce unemployment, but it is not a cure-all for a sluggish economy. The relationship between these is complex. For example, a group from our church was returning from a mission trip to South Texas when we needed gas. We stopped in a town surrounded by drilling rigs. I found it ironic that we paid more per gallon for gas there than any other place on our trip.

A quick survey of several sources revealed multiple factors determine the cost of gasoline. Here are some percentages associated with those components—taxes (11 percent to 13 percent), distributing and marketing (6 percent to 9 percent), refining (6 percent to 14 percent) and the cost of crude oil (65 percent to 76 percent). The range of costs has remained within these parameters several years.

Rising costs for crude oil place an upward pressure on what we pay for gas. Complex variables affect the cost of crude oil—production by the Organization of Petroleum Exporting Countries, production by other nations, domestic production, spot-market prices, the worldwide demand for oil products and even market speculators.

Right or Wrong?Continued exploration and drilling should help reduce future increases in the cost of crude oil. Another benefit—at least in the short-term—will be the increased property values near drilling areas.

But increased drilling can be a mixed blessing, as I experienced on my mission trip. Traffic was heavier than we faced in previous years. Rough roads evidenced increased wear and tear. The new housing we saw was temporary, accented by the many small camper trailers near drilling rigs. While increased drilling may raise property values, this may adversely affect those who are trying to find a place to live at a reasonable cost. We also might remember history has taught us bust years may follow boom years in communities supported by drilling.

Lower prices for gasoline would benefit our economy. High gasoline prices affect all of us. They increase the cost of travel for work, school or leisure. They increase the cost of food, clothing, heating and even cooling your home, as well as many other things we need to live.

Rising gas prices can be addressed in several ways. One good way clearly is to drill more and increase production. But at the very best, that solution will end when fossil fuel resources are emptied. And caution must be exercised lest accidents damage our environment. Conservation can help—using public transportation, keeping our cars running at peak efficiency, carpooling or even walking. Still another helpful approach would be to encourage and promote research into alternate energy sources.

David Morgan, pastor


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Trinity Baptist Church

Harker Heights

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