Why Gas Prices are High and the Hybrid Myth

Did you know that a new oil refinery hasn't been built in the United States in the past 30 years? Or that environmentalists have blocked new oil drilling virtually everywhere in the country? And since oil isn't an option, what about nuclear power? Nope, environmentalists have blocked that too. Even wind farms are out of vogue; the great environmentalist Kennedy clan helped kill a wind farm project in the Nantucket Sound that might have marred the view from their Hyannisport compound. In other words, many of the people using the high price of gas to push for government intervention in the economy are the very people who created the energy supply shortfall in the first place.

But that doesn't let the Republicans off the hook. In fact, it makes it more important to take them to task for their irresponsible economic rhetoric. I expect Democrats to employ socialist arguments; it's what they do. But when Republicans join them, it makes me wonder what the point of voting Republican is. I doubt I'm alone in feeling this way, and if so, the Republicans have a reason to worry about the election in November. They are supposed to be the party that understands basic economic laws like supply and demand. Maybe a good old-fashioned electoral ass-whoopin' is what the Republicans need to remind them of that.

Hybrid Myth:
The Toyota Motor Corporation won't address certain misconceptions that have arisen about thier Toyota Prius model, which they are proud to note is driven by many celebrities, including Prince Charles and HBO's Larry David. Their pioneering gasoline-electric hybrid, introduced in 1999, has become an object of adoration to the world's enlightened car buyers. Their competitors, including America's Big Three, are rushing out hybrid vehicles of their own. Unconfirmed media reports say that Toyota intend to double their hybrid output to 500,000 vehicles next year. Along with other members of the auto industry, I'm sure they'll be lobbying for tax breaks and HOV privileges for hybrid vehicles. However, any romance entering its seventh year tends to go stale. Some purchasers have begun to question the practical value of our Hybrid Synergy Drive technology.

You may be aware that a survey by Consumer Reports found that their vehicles achieve considerably less mileage (some 26% less) than the sticker rating implies. This has led to some unflattering media stories. Prius remains one of the most fuel-efficient cars on the road and I'm sure Toyota applauds your willingness to spend $9,500 over the price of any comparable vehicle for the privilege of saving, at current gasoline prices, approximately $580 a year -- and should the price of gasoline rise to $5, after 10 years and/or 130,000 miles of driving, you might even come close to breaking even on your investment in hybrid technology. Customers have an 'emotional' relationship with their vehicles. that transcends the regrettable truth that driving a fuel-efficient car does not yield any substantial benefits for society if it doesn't save the owner money. Contrary to any loose statements made by marketing partners in the environmental community and media, petroleum not consumed by Prius owners is not 'saved.' It does not remain in the ground.

It is consumed by someone else. Greenhouse pollutants are released. The warranty and owner's manual says nothing about reducing America's dependence on foreign oil. This is not an oversight. The Prius is an 'oil-dependent' vehicle. It runs on gasoline, supplied by the same world market that fuels other vehicles. I share the belief that the days of the internal combustion engine are numbered. Economists suggest this will happen when the price of gasoline rises high enough to make alternative technologies cheaper than gasoline-powered cars.

Take Toyota's new hybrid SUV, which produces 38 more horsepower but gets the same mileage as their conventional version. A New York Times reviewer wrote, 'One question lingers after driving the 2006 Lexus RX400h: How did it come to this, that Toyota is now selling a hybrid gas-electric vehicle with no tangible fuel economy benefits?' We makes me question their latest slogan ('Commute with Nature'). Hybrid technology is not 'green' technology. Like heated seats or flashy exterior trim, it's merely an expensive option that generates large markups for the Toyota Corporation and its dealers.

General Motors, has suggested that hybrid technology is best deployed in city buses, where large fuel consumption and stop-and-go driving might actually make it economically sensible.

Now that's someone thinking on his feet. But clearly not walking with them.