Way back in 1973, we knew that relying on foreign oil was a bad idea. But did we do anything about it? Then gas prices stabilized a little and we went on down the road.
We talked about energy independence. Seems like every Presidential campaign talked about it, but not much got down.
Here we are roughly 40 years and several gasoline price spikes later, and we are no closer to a solution than we were then.
In many ways we are further away. We have some drilling, but not near what we are capable of pulling out of the ground - oli and natural gas. Offshore drilling may never become a realty after we intentionally and negligently let all the rigs go to other locations. If we see the rigs again anywhere close to our shore it will be because another country has brought them them to take what should be ours.
It has been 35 years since we have approved a new refinery and nearly as long for a nuclear plant. Planning for new refineries has all but been abandoned. Florida and Texas are planning nuclear facilities, but additional permitting and review is required before construction could begin.
We have the world's largest reserve of coal, but regulation has stifled mining.
This gets us to today. Not only are we paying for the lack of action to bolster our energy production, we are now paying exorbitant prices for gas - by our standards not those of other countries - and the top isn't in sight yet.
Every penny that gas goes up takes a penny from disposable income that might be spent going out to eat or shopping. Every penny that gas goes up causes the truckers to increase their prices to the distributors who then increase their prices to the retailers. It's called inflation, and it's about to take off. I'm seeing one dollar and higher increases in grocery items - even $2 items going to $3. No nickel and dime - we're seeing full dollar and more increases.
This is going to impact spending choices that people have, how far they are willing to drive, for non-essential activity, how far and how often we are willing to drive people around to look at homes, how much people have to spend for new housing, and everyone's general disposition. It is going to affect the housing recovery.
We're all in this together, but the folks in Washington for decades have been acting like this is what they want to have - for us to be dependent on foreign oil, for us to lack the infrastructure to create energy independence, and for gas prices to rise as high as they have to with no regard for the impact on inflation or other areas of our economy. It wouldn't have taken much to have avoided the mess we are in. It will take a bit more to get us out now, but the first thing it will take is leadership.
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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.
Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.
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