My question may be off topic but I felt it important to post since it affects ministry. One of my trustees lives out of town and has an old truck that he drives, he is out of work at the moment and it is hard for him to get to our town for church because gas is so high. And it is expensive to fill up his truck. We are taking turns getting him into church. I have several members who live out of town and over mountain passes and the high price of gases is impacting on their abilities to get to church and work. In my town it is $1.74 and every two days it goes up. With it being so cold in Montana. One has to keep a full tank of gas so the car doesn't freeze. The impact of high gas prices does affect ministry. Perhaps someone can explain "the economics of all of this" not only in the US but for the rest of the world. God bless and thanks.

-- Anonymous, March 09, 2003

Answers

Hello Rev. Rogers,

It's always good to hear from you. The oil prices have gone up because OPEC has used the fear associated with this impending war with Iraq to raise the price of crude oil to $40.00 a barrel when it has normally been between $25.00 to $30.00 a barrel. They are trying to raise it to $55.00 a barrel. OPEC can use fear to raise the price of crude oil based on the fact that Iraq will have a de facto cut in crude oil production in the event of war. It is true that Iraq supplies only 3% of the world's oil but it has the second largest oil reserve in the world. So although, the US makes up 5% of the world's population and supplies only 50% of its oil, OPEC can manipulate prices in this greedy manner.

Jazzman

-- Anonymous, March 10, 2003

I am moving to Montana (lol)!

I sympathize with your congregants. The "Cheap stuff" is 2.04 per gallon in sunny California. I average 500 miles per week driving to church, so you do the math (I have a mini-van).

I personally believe that the higher oil/gas costs are a way of forcing public support for our war with Iraq. The United States has well over 100 years (that right, years) of oil reserves. We could simply use own our stuff. But that doesn't repay Baby Bushs' backers. That doesn't generate increased defense spending. The government could suspend the taxes we pay on gas (18-30 cents per gallon), but that wouldn't keep the general fund full.

Once again, the government for, by, and of the people has forgotten ABOUT the people.

We need to put our heads together in prayer for lower costs, or to invent a gas substitute.

Rev. John

-- Anonymous, March 10, 2003

Dear Rev. Denise In addition to Jazzman's assessment (Which I do agree with) there is also the issue with the decrease in capacity due to a major decrease in refinery output in the United States. Significant fires in the last four years have knocked large refineries. In addition the delivery of Venezuela oil has been hampered due to industrial unrest. Expect prices to be high and worse as spring will soon move to summer. If it is any consolation Bermuda pays around $5.08. per gallon of gas.

God Bless You All Thank You also for your prayers Rev. Denise. I am pushing on with faith and will not falter.

-- Anonymous, March 10, 2003

Actually, compared to European markets, the price of gasoline in the US is still a bargain. Oil markets operate according to the simple rules of supply and demand. Yes, international events and attendant uncertainties play a role in determing the "spot" and "forward" price for gasoline but consumers and government (escalating excise taxes) as well as OPEC nations are active participants. What's important is not that gas prices are "high" but rising in value relative to other goods and services. As economists are found of saying what matters most is the rising relative price of a commodity which instantly signals resouce scarcity and requires a prudent reaction on the part of consumers and producers (consumers should buy less and producers typically produce more). US consumers are unwilling to adopt alternative transportation and energy strategies to help reduce the dependence on imported foriegn oil. We have a voracious appetite for fossil fuels. We desire the privacy and convienence of automobiles to transport us from home to work. Too few of us carpool and to use public transportation is thought of as a culturally inferior option. We love our SUVs, pick-up trucks and the quasi-trucks like Navigators, Escalandes, Aviators, etc. Drilling for oil in the US is a sound option but it's demogogued by the Sierra Club and most environmental groups as "too risky" for our natural habitant. Wilderness animals such as caribou and difficult to pronounce endangered species have powerful friends in Washignton DC determined to make life uncomfortable for gluttonous humans. This all translates into an increase in demand and combined with output restrictions from OPEC nations the relative price spirals upward. The more things change, the more they remain the same. QED

-- Anonymous, March 11, 2003