Gas-onomics

Some think that loadshedding came at the right time, to force people to save power and start thinking along sustainable lines: perhaps even to get back to traditional ways of spending time together.

The same has been bandied about about high petrol (gas) prices.  Raise the price, get people to drive less (less carbon, less demand, build public transport); it all sounds quite sane. Even the apparent side-issue, that the government gets the exponential tax, is worth all the trouble.

gas

That’s what I thought, until I read up on the issue, including Freakonomics articles.

Higher oil prices means more incentive and resources to go looking for oil (in business terms). More supply means the dance of supply and demand could be in full swing. The point is that the same amount of gas will be consumed regardless. The environmental impact of drilling and extracting oil and polluting air, has not lessened or stood still. It grows regardless.

There was a comment that government needs to tax consumers, but also suppliers, punitively. This money can be used somehow, somewhere. That would be another issue to fight.

About Derek

My key interests are online investor relations, websites, social media, enterprise 2.0 and intranets, and XBRL. Speak to me if you need a solution in any of these disciplines, or follow my knowledge links on this site and others. Find me on Twitter, LinkedIn or in recent conversations.