Falling gas prices a double-edged sword

Editor's Notebook
By Mary Powell

In case you haven't noticed, the price of gasoline is falling, and falling fast.

Just when we thought we could stand no more of $4 plus a gallon, gas prices began to drop. We can't help but rejoice when we can fill up for less than $50, and that's for a compact car.

Cheap - make that cheaper - gasoline is back, at least for the time being.

The price of oil has plummeted by more than half since it soared to about $147 a barrel in July and gasoline prices have tumbled almost as dramatically, from a nationwide average high of $4.19 a gallon for unleaded regular in July to a national average of $1.83 as of Dec. 1.

The cheapest unleaded gas can be found in Missouri at $1.57 a gallon, while the most expensive is $2.87 in Alaska. Washington state is in the middle of the pack, with an average gallon of unleaded regular right around $1.91.

In Sequim, the lowest gas is $1.89 at Costco (remember, you need to be a card-carrying member to purchase gas at Costco), and the highest is $2.09 at the Texaco, Chevron and Shell stations.

Nice, huh? But what does it mean?

Without putting a damper on a little joy during a time of recession, these lower fuel costs do come with negative undertones.

First, we shouldn't be lulled into thinking fuel prices will continue to drop and then stay low. As we have seen over and over, gas price fluctuations are commonplace, and when they do jump up, like a gymnast on a trampoline they bounce a little higher each time.

When prices were rising to record levels last spring and summer, the big question was why. Finger pointing was rampant, with the blame going to oil speculators, Big Oil and OPEC for driving up prices.

Those are still valid reasons as to why gas prices hit nearly $4.50 a gallon, but the sharp rise probably had less to do with conspiracies than it did with market fluctuations and the instability in oil-producing areas.

The most important factor is the margin between supply and demand. According to economists, gas prices are falling now because the world, not just the United States, is heading into a recession, if not already there.

The good news is that drivers in this country responded to the exorbitant gas prices by driving less and buying smaller cars rather than gas-guzzling SUVs. Fewer people in cars and more taking the bus, bicycling and walking reduces oil consumption and goes a long way in cleaning up the environment.

However, as wonderful as the lower oil prices are in these tough financial times, they do threaten to derail the drive to finding alternative energy sources. Indeed, the war cry for more gas-efficient cars was much louder when we were shelling out $4 a gallon for gas.
And a backlash to all this is the Big Three American automakers asking for a bailout after a huge sales collapse in October.
The fact is, there is a finite amount of oil in the world and someday, we are going to run out. At that point, gasoline prices will be through the roof and the rush to find alternative energy sources will be in full swing, if not too late.
Now is the time to learn from those recent high gasoline prices and stay the course on both finding and funding alternative energy sources and continue our frugal gasoline habits we adopted a few months ago. 
As one editorial writer for the News & Messenger in Manassas, Va., suggested, "Pretend that gas prices aren't falling."

Four vs. three or three vs. four
It is most disconcerting that after trying to work together for a little more than a year, the Sequim City Council still can't.
What was supposed to be an Obama moment for Sequim has turned out to be a contentious year.

Sequim citizens made it clear in the November 2007 elections they wanted a change in city government, specifically the way in which the city council did its business. Four new councilors were elected and since, there has been a four-three division on the council.

The rift is so apparent that Mayor Laura Dubois recently asked another city councilor to stop saying "the four of us," referring to the council members elected a year ago.

While a certain amount of dissension is good, there is nothing this council discusses that doesn't reveal its divisiveness.

Now, the firm that has been hired to search for a city manager also will lead the council through team-building exercises. This, of course, has a price tag, and comes at a time when budgets are extremely tight and programs are in danger of being cut.

It's uncertain if workshops in team building will help, but hopefully it is a step in the right direction and that direction is to have a seven-member council that works together for the good of the city and its citizens.

Send us your best
We are looking for your best Christmas stories for a special feature to print Dec. 24. This could be a fond memory or what your plans are for this holiday season. We want unique stories. If you have one, please call Mary Powell at 683-3311 or e-mail her at editor@sequimgazette.com and we will contact you about your story.

We also are looking for well-decorated homes in the Sequim area. Again, give us a call and we will come take a photo.

Mary Powell can be reached at editor@sequimgazette.com or at 683-3311.