Gas Prices Are on the


The present situations favored the suppliers who had the opportunity to increase prices for increase in profits and then stabilize at a higher level. (Ending the Gasoline price spiral)

The usage of petroleum has already been discussed, but in certain industries, there is also substantial usage of coal. One of them is with regard to electric utilities, and they used 471 million tons of coal in the year 1997 and the rate at which the increase was held was that of 15.1% annually. Now if we compare it with the natural gas, it could be found that 43.8 million of natural gas was used and that usage was also found to be growing at the rate of 6.2% annually. The usage of petroleum was estimated to have declined to 17.6 million tons and the decline was considered to be at the rate of 33.8%. The increase or decrease was held in comparison to the year 1990. (Overview: Carbon Dioxide Emissions) Thus the usage of petroleum in other areas is probably not a reason for concern. The operation of nuclear generation is likely to be limited to only operation of existing facilities, and that is why it seems that usage of fossil fuels is likely to increase for electricity generation. The situation now is that gas is also being imported and in 2000 U.S. demand of 22.2tcf per year exceeded production of 18.7tcf per year and that means about 14% of natural gas used was being imported from Canada. (Some interesting oil industry statistics)

II. Solutions

No more wars in the Middle East:

On the second Monday of August, Israel finally started withdrawals from Palestine, where it had settled 9,000 Jews in the middle of more than a million Arabs. This situation in Gaza had been the demonstration of the failure of Israel's settlement policy and ultimately the plan was implemented, though it should have been done many years ago. (Gaza is a first step) The situation and its benefits will pass on to the other Arab states also as Egypt will place 750 lightly armed troops to guard the Gaza border, after the Israeli leave. This is being approved by the Israeli Parliament. With the implementation of this accord, Egypt is not to give arms to Palestinian Authority. The Palestinians are also hoping that they will be permitted to move freely across the Gaza-Egypt border, have the sea blockade of Gaza coast lifted and get unfettered flights in Palestine to the airport they are hoping to build. (Palestinian Prime Minister: Militants upholding truce) This is good in so far that peace will be established in that region, is the hope; but that is not interfering with American oil supplies to any great extent now.

More water and less oil:

International law is not clear on the sharing of water between nations who use the same source of water. There are not very many agreements concluded on this matter between nations also. In the Middle East this has led to many battles. After the Madrid conference of 1991, the negotiations between Palestine, Syria and Israel always ended without any conclusion due to the question of sharing of water. Even till recently, the Israeli army was stopping Palestinians from drawing water, while the Israeli settlers were drawing water through sophisticated pumps. This led to complaints from the Palestinians that 80% of their water was being stolen. (Analysis: Middle East water wars) this is certainly a useful thought, and can improve long-term supplies of oil.

Different idea for car fuels:

Instead of looking at different possible dreams, let us look at one of the possibilities that are being investigated right now -- the Fuel Cell Vehicle as compared to a Battery electric Vehicle. The size of the vehicle for which the comparison was made was an automobile model in the middle range and that is the segment where most of the vehicles are. The facts and figures were obtained from government studies and the compared costs were for manufacturing and refueling. The basis was delivery of 135 horsepower and running over a range of 300 miles. The study showed clearly that battery electric vehicles were superior in terms of cost, energy efficiency, weight and volume. The difference in performance increases when the concerned energy is derived from renewable resources. (A cost comparison of Fuel-Cell and Battery Electric Vehicles) This is fine, but right now not practical as enough choices are not available.

Shipping Cost reduction:

This is possible to some extent with new and bigger ships coming in, but for that the investors will have to be convinced. The supply position of ships is tight as nobody wants to invest more.

Elimination of fossil fuels:

This is a concept that was behind the nuclear power stations, but the result was more pollution which made man's living on the planet more difficult. So, that has also been controlled now. What fuel do we use?


In part, the apparent high prices of gas are due to the weakening dollar. Yet, even having a strong dollar will not solve the problem as demand is also increasing in China. Looking ahead, the entire world is getting much polluted and temperatures are getting very high with man getting accustomed to conveniences. So, it is possible that a day will come when we shall live in high air-conditioned domes, work in air-conditioned domes, and not have to travel as communication will be done on the Internet. That will also solve oil and gasoline problems.


Darwish, Adel. (30 May, 2003) "Analysis: Middle East water wars" Retrieved from Accessed 5 September, 2005

Eaves, Stephen; Eaves, James. "A Cost Comparison of Fuel-Cell and Battery Electric Vehicles"

Retrieved from

Accessed 5 September, 2005

'Ending the Gasoline price spiral" (July, 2001) Retrieved from Accessed 5 September, 2005

"Gaza is a…