Dear Editor,
Reading James Fennell’s letter of June 13 gives the impression
that he believes liberal politicians have some agenda to make oil
prices higher. In fact, no politician, liberal or otherwise, has
any influence on how much oil is available or what it costs. Here’s
why: The price of oil is set by commodities futures traders. Oil
has not become 50 percent more scarce in the last year, but the
price has more than doubled. Like grain, gold, and orange juice,
not to mention hog bellies, oil is a commodity that’s traded far
from the oil fields and refineries.
C’mon let’s speak the truth about why gas prices are rising so quickly
Dear Editor,
Reading James Fennell’s letter of June 13 gives the impression that he believes liberal politicians have some agenda to make oil prices higher. In fact, no politician, liberal or otherwise, has any influence on how much oil is available or what it costs. Here’s why: The price of oil is set by commodities futures traders. Oil has not become 50 percent more scarce in the last year, but the price has more than doubled. Like grain, gold, and orange juice, not to mention hog bellies, oil is a commodity that’s traded far from the oil fields and refineries.
Exacerbating the situation is the fact that the current administration has made the dollar’s value plunge, due to its profligate deficit spending combined with the amount all of us Americans have put ourselves in hock to the Chinese so that we could have cheaper goods. Why does this matter?
Because oil is traded in dollars, not Euros or other currencies. Because our dollar’s value has eroded in the past five years, the price of oil is about 30 percent higher, even if the amount of available oil hasn’t changed one iota. Politicians aren’t solely to blame for this mess. It’s us. Sitting in gas lines in 1973 and 1980 apparently didn’t impress us enough to demand more fuel-efficient vehicles here in the US. Instead, we have Escalades, Yukons, and Hummers to drive the same size families around that we once drove around in Novas, Impalas, and Fairlanes. We favor big vehicles with lots of horsepower over conservative usage. And since the last oil shock a quarter of a century ago, China and India have become major consumers of oil, competing with us for the same resource. This is only going to get worse.
Europeans and Japanese get it. Americans, by and large, don’t. Detroit didn’t come up with hybrid cars, and they killed the electric car. The rest of the world drives more efficient vehicles and somehow they do just fine. Currently, the U.S. uses more than 800 million gallons of oil each day, of which about 20 million gallons is burned in cars. Californians alone burn 14 billion gallons a year, more than 400 gallons per person – and we rank eighth lowest in consumption of all 50 states, per capita.The U.S. uses four times as much oil as China, and we use more than China, Japan, Germany, Russian, India, and Canada combined.
Finally, note that we still get a large amount of our oil from domestic U.S. sources, but the U.S. producers sell their oil at the worldwide price. We don’t get an “American discount for Americans” from our fellow Americans. They stick us as hard as the Saudis, Venezuelans, and other oil producers. So, even if we drill every inch of Alaska, the Gulf of Mexico, or Peoria, Illinois, the price of gas isn’t going to come down. The best thing isn’t to find more sources of oil; it’s to find smarter ways to use less.
Tom Mulhern, Gilroy
San Martin incorporation simply doesn’t make any financial sense
Dear Editor,
I attended the Local Agency Formation Commission meeting June 4. I am very old fashioned and do not fully understand the new fuzzy government math.
Mr. Van Root stated, as has been said since the inception of this process, that “nothing will change for San Martin.” He also advised the LAFCO board to be aware that new cities often are in a precarious situation in the beginning. This comment was in response to residents and Commissioner Blanca Alvarado raising serious doubts about the ability of the new city to not “be bankrupt even before we start.” In my simple world, if I start out in a precarious position, and change nothing, I will simply dig myself deeper into the proverbial hole, unless I just start spontaneously raising money.
Does anyone else have trouble with this logic? Am I the only person missing the money showers? Maybe the money showers are over the three-year horizon, just out of sight? Attend the next LAFCO meeting at 1 p.m. July 2. The explanation should be interesting. Bring your calculator.
Maureen Peterson, San Martin
Why doesn’t Gilroy have an off-leash dog park like Morgan Hill?
Dear Editor,
Dog parks? Since I drive to Morgan Hill to use an off-leash dog park facility I must ask, why are there no dog parks in Gilroy?
Steve Bozzo, Gilroy
Solution to skyrocketing energy prices well within country’s grasp
Dear Editor,
Buying water from Luke Brugnara? I read the story with the heading “City administrator to meet with water wholesaler” on page A5.
I initially read about Brugnara during my involvement with “No Quarry in Gilroy” because of this man’s alleged damming of Little Arthur Creek and the impact on threatened steelhead.
Is it true our mayor, new City Administrator Tom Haglund, and council member Perry Woodward are seriously considering buying water from someone who is facing federal charges? If it is all about saving money, I too, would like to save some money here and there, especially millions, but I would never compromise my integrity and ethics to do so.
I’m sure there are other ways to reduce the city of Gilroy’s $6.2 million deficit without making deals with those who are of questionable morals.
Susan Mister, Gilroy
