Tuesday, June 01, 2004

 

Dollar a Gallon is here

Yes, it's finally hit a dollar a gallon. No, not gasoline, which is now two dollars a gallon. Crude oil has hit a dollar a gallon, or since a barrel has 42 gallons, $42 a barrel. The reason was a terrorist attack in Saudi Arabia that has gotten everyone jittery. I expect that in the near future that the price of crude will settle back down, but not back to where it was. The emotional input to the price will evaporate like gasoline on the sidewalk, leaving behind the terrorist premium on the price of oil. It is rather interesting, this price of a dollar a gallon for crude. Now one can see that the other dollar in gasoline consists of refining, transportation of the gasoline to the service station, and taxes. By the way, I still think we need a hefty increase in taxes, so that the money from the high prices goes to the US government instead of to oil companies and Saudis. The government can return it to us in lower income taxes, pay off the national debt with it, or invest it in renewable energy programs.

Also this price of $42 a gallon is interesting, as the price is "the answer to life, the universe, and everything". At least according to The Hitchhiker's guide to the Galaxy, it is. Or Google. Try entering "the answer to life, the universe, and everything" in Google and see what happens. I hope the answer to life, the universe and everything is not in a barrel of oil. For in my opinion, the reason why 42 is this answer is that it is the sum of the pips in a pair of dice, so that everything is just a big crap shoot.

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