{"id":412390,"date":"2010-03-10T14:21:32","date_gmt":"2010-03-10T19:21:32","guid":{"rendered":"http:\/\/www.grist.org\/article\/2010-03-10-the-do-nothing-energy-tax-3-gasoline-dead-ahead\/"},"modified":"2010-03-10T14:21:32","modified_gmt":"2010-03-10T19:21:32","slug":"the-do-nothing-energy-tax-3-gasoline-dead-ahead","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/412390","title":{"rendered":"The do-nothing energy tax: $3 gasoline dead ahead"},"content":{"rendered":"<p>\t\t\t\tby Daniel J. Weiss <\/p>\n<p>Cross-posted from the <a href=\"http:\/\/wonkroom.thinkprogress.org\/2010\/03\/10\/three-dollar-gas\/\">Wonk Room<\/a>.<\/p>\n<p><\/p>\n<p>The mounds of snow blackened by auto exhaust have barely melted in Washington, D.C, yet the <a href=\"http:\/\/www.eia.doe.gov\/emeu\/steo\/pub\/contents.html\">Energy Information Administration&rsquo;s Short Term Energy Outlook<\/a> already predicts that average gas prices &ldquo;will exceed $3 per gallon&rdquo; in coming months:<\/p>\n<p><strong>Average U.S. pump prices likely will exceed $3 per gallon<\/strong> at times during the forthcoming spring and summer driving season.<\/p>\n<p><\/p>\n<p>EIA projects gasoline consumption will begin to show modest, but consistent, increases over the previous year, growing by 60,000 bbl\/d in 2010 and 70,000 bbl\/d in 2011.<\/p>\n<p>In other words, there will be a gasoline price increase of 17 percent compared to summer 2009, even though consumption will only increase by six-tenths of a percent.&nbsp; It means that American drivers will spend an additional $174 million per day on gasoline this summer compared to last year.&nbsp; This could be as much as $16 billion more during the months of June, July, and August.&nbsp; Total daily spending on gasoline this summer could be more than $1 billion per day.<\/p>\n<p><\/p>\n<p>The higher gasoline prices reflect higher oil prices.<\/p>\n<p>EIA expects WTI prices to average above $80 per barrel this spring, rising to an average of about $82 per barrel by the end of the year and to $85 per barrel by the end of 2011.<\/p>\n<p>This will mark a rise in crude oil prices from a $39 per barrel in February 2009 to $82 by the end of 2010 &ndash; a 110 percent increase in two years.&nbsp; <a href=\"http:\/\/www.washingtonpost.com\/wp-dyn\/content\/article\/2010\/03\/10\/AR2010031000546.html\">Oil prices have already closed above $80 this week<\/a>.<\/p>\n<p><\/p>\n<p>Higher gasoline prices are like a tax on consumers &ndash; they pay more for the same amount of product, with the additional funds enriching big oil companies and foreign oil suppliers.<\/p>\n<p><\/p>\n<p>Since <a href=\"http:\/\/www.americanprogress.org\/issues\/2010\/01\/oil_imports_security.html\">one of every four barrels of oil<\/a> comes from nations that the State Department classifies as &ldquo;dangerous or unstable,&rdquo; more oil consumption and higher prices further enriches these states.&nbsp; And a <a href=\"http:\/\/www.votevets.org\/news?id=0315\">$1 increase in oil prices provides an additional $1 billion dollars<\/a> to the Iranian government &ndash; even though the U.S. buys no oil from it.&nbsp; This can only help <a href=\"http:\/\/www.billiondollarsaday.com\/\">Iran incite unrest and attacks in Iraq<\/a> and elsewhere.<\/p>\n<p><\/p>\n<p><a href=\"http:\/\/www.eia.doe.gov\/emeu\/steo\/pub\/gifs\/Fig2.gif\">Short-Term Energy Outlook, March 2010:<\/a><\/p>\n<p><\/p>\n<p><\/p>\n<p>EIA also predicts an increase in U.S. coal consumption compared to 2009.<\/p>\n<p>Anticipated increases in electricity demand and higher natural gas prices will contribute to modest growth in coal-fired generation in 2010 and 2011.&nbsp; Forecast coal consumption in the electric power sector increases by about 3 percent in 2010, though staying under 1 billion short tons.&nbsp; EIA projects coal consumption in the electric power sector will increase by 1.6 percent in 2011.<\/p>\n<p>And with more oil and coal consumption comes higher levels of carbon dioxide pollution after several years of decrease due to the 2007-2009 recession.<\/p>\n<p>Projected improvements in the economy contribute to an expected 1.5-percent increase in CO2 emissions in 2010.&nbsp; Increased use of coal in the electric power sector and continued economic growth, combined with the expansion of transportation-related petroleum consumption, lead to a 1.2-percent increase in CO2 emissions in 2011.&nbsp; However, even with increases in 2010 and 2011, projected CO2 emissions in 2011 are lower than annual emissions from 1999 through 2008.<\/p>\n<p><a href=\"http:\/\/www.eia.doe.gov\/emeu\/steo\/pub\/gifs\/Fig24.gif\">Carbon Dioxide Emissions Growth Chart:<\/a><\/p>\n<p><\/p>\n<p><\/p>\n<p>Clearly, efforts to reduce oil dependence, coal burning, and global warming pollution cannot begin a moment too soon.&nbsp; The bipartisan American Clean Energy and Security Act, passed by the House of Representatives last summer, would <a href=\"http:\/\/www.washingtonpost.com\/wp-dyn\/content\/article\/2010\/03\/09\/AR2010030903604.html\">cut oil use by at least 600,000 barrels per day by 2020<\/a>.&nbsp; It&rsquo;s the Senate&rsquo;s turn to pass comprehensive bipartisan clean energy legislation that reduces oil dependence.&nbsp;  Senators who care about Americans&rsquo; pocket books, national security, and a healthy future must  join <a href=\"http:\/\/www.politico.com\/news\/stories\/0310\/34161.html\">efforts by Senators John Kerry (D-Mass.), Lindsey Graham (R-S.C.), and Joe Lieberman (I-Conn.) to solve these problems<\/a>.&nbsp; We can&rsquo;t afford to wait much longer.<\/p>\n<p><strong>Related Links:<\/strong><\/p>\n<p><a href=\"http:\/\/www.grist.org\/article\/on-march-15-take-action-to-stop-dumping-mine-waste-into-our-water\/\">On March 15, Take Action to Stop Dumping Mine Waste Into Our Water<\/a><\/p>\n<p><a href=\"http:\/\/www.grist.org\/article\/death-of-a-thousand-cuts\/\">A messy but practical strategy for phasing out the U.S. coal fleet<\/a><\/p>\n<p><a href=\"http:\/\/www.grist.org\/article\/citizens-gather-in-washington-to-end-mountain-bombing-of-appalachia\/\">Citizens gather in Washington to end &#8216;mountain bombing&#8217; of Appalachia<\/a><\/p>\n<p>\t\t\t<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<a href=\"http:\/\/ads.pheedo.com\/click.phdo?s=694f8a4c04df25ecfa9e315c91a30e94&#038;p=1\"><img decoding=\"async\" alt=\"\" style=\"border: 0;\" border=\"0\" src=\"http:\/\/ads.pheedo.com\/img.phdo?s=694f8a4c04df25ecfa9e315c91a30e94&#038;p=1\"\/><\/a><br \/>\n<!-- foo --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>by Daniel J. Weiss Cross-posted from the Wonk Room. The mounds of snow blackened by auto exhaust have barely melted in Washington, D.C, yet the Energy Information Administration&rsquo;s Short Term Energy Outlook already predicts that average gas prices &ldquo;will exceed $3 per gallon&rdquo; in coming months: Average U.S. pump prices likely will exceed $3 per [&hellip;]<\/p>\n","protected":false},"author":765,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-412390","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/412390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/765"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=412390"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/412390\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=412390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=412390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=412390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}