So, how can we lower gas prices? | Hacker News Reader

So, how can we lower gas prices?

noahpinion.substack.com

6 pointspaulpauper9 comments

Back in the 1970's, the approach was to conserve. In other words, reduce use of the precious commodities. Some examples:

1. Driving at a considerably slower speed on the federal highways (the older 55 MPH limit);

2. Jimmy Carter gave televised advice [1] while wearing a sweater -- suggesting that his thermostat was set a little colder in winter;

3. Proper tire inflation and maintenance of your car helps with gas mileage;

4. Carpooling. Shoot I even did this when I was a practicing attorney -- which is funny, considering that my dad built a few refineries.

5. Following, a safe distance behind a semi truck, also helps. I do this if I have a very specific amount of miles I can count on my car to go, before refueling.

I'm a little surprised that the current Democrat administration doesn't take the Jimmy Carter approach. Instead, we are being told that we can skip funding the highways by eliminating the federal fuel tax -- sending the signal that gasoline is not that precious.

[1] https://www.washingtonpost.com/archive/lifestyle/1977/02/05/...

I'm already seeing conservation on the streets as a market force response. A larger proportion of the parked cars have downsized, and I counted three Smart ForTwos on my walk today. Micromobility usage isn't quite as wild as it was in 2017 - less gimmicky e-skateboards and hoverboards - but it's also up overall with more e-bikes and e-scooters to be found all throughout big cities and easily rented by app. That's an option that wasn't around in the 70's, and it makes a tangible difference for the short urban trips since it doesn't create the same logistical issues as owning and locking up a pedal bike. The docked rental e-bikes here are charged by a solar PV, so they have very little footprint for the capacity they add. I expect to see quite a lot more of them in the next few years.

“We wanted flying cars and instead we got carpooling and 55 mph.”

By removing the incentive to plow the current massive profits into stock buybacks and dividends instead of refining capacity?

https://www.cnn.com/2022/03/24/energy/gas-prices-oil-product...

I comes down to supply and demand. The fastest way to reduce cost at this point it to get OPEC to increase supply thru an incentive. Money? some kind of agreement? Fracking was the solution to add supply but that seems to have been a temporary solution. It's distasteful to give OPEC an incentive but lowering the cost of the raw product will always lead to a lower price of the final product. Long term it's a matter of reducing demand by using alternative fuels.

That incentive is also cost. I realize that in practice it will be from a different balance sheet so technically gas prices will go down, but if we are paying OPEC to increase supply that payment needs to be amortized over the increase, or we are fooling ourselves and just hiding part of the cost.

> I comes down to supply and demand. The fastest way to reduce cost at this point it to get OPEC to increase supply thru an incentive.

Or just lift the sanctions against Russia.

Oil prices are fairly inelastic — a small change in the balance between supply and demand causes a large price change.

So how can "we" change the price? Buy less of the stuff.

Noah is too dumb to read.

Obviously increase supply (fracking, pipelines, offshore drilling, etc.)

And create more alternatives (actual cheaper alternatives, like nuclear power plants) as a substitution effect

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