The impact of having different gasoline formulas

Today we constantly see changing gas prices, sometimes on a daily basis with no real apparent reason for the ups and down of the prices. The market seems to react to every incident in the media which talks about an impact to the supply of gas. Does this make sense and if so is there a reason for the change. We as individuals may not know or ever know the reason for the shift in gas prices and the quantity of changes. When we go to work in the morning, many times the price we see is different when we return home. I am not pointing blame at any one entity but there needs to be questions asked and viable answers given for the constant change in gas prices.

It is true that events involving such things as hurricanes which the East coast is now experiencing will impact the supply of gas. While the impact will be felt we need to ask ourselves if the impact of the supply will be immediate or will take a few weeks or even months to experience. Supply and demand is vibrant in our country but how and when the supply is impacted must or should be examined by the proper authorities.

In relation to supply, we currently have in use two different formulas which are produced by the refineries in this country. There is one for the summer months and one for the winter months. When these changes occur, it forces refineries to close down for a period of time, sometimes weeks, to make the shift from one formula to another. Some say there are environmental concerns as to why the changes are needed. Part of the reason appears to be that more individuals travel in the summer months than in the winter, and different formula is required. This is not necessarily because of the higher travel numbers. The need for a gas formula appears to be partly required based on higher temperatures and the impact they have on gas formulas used in the winter. Another aspect appears to be to reduce the amount of smog entering the atmosphere and impacting the air we breathe

Regarding the supply of gas, safety and environmental issues need to be addressed. According to some reports, the use of these two formulas did not start in the last few years, but has been in existence for decades. Environmental decisions related to gas formulas from winter to summer must be analyzed to determine the best formula to use for all year taking into account the environmental concerns mentioned above. It is also not known or could not be determined when the use of two different formulas for our gas first became a requirement.

It would be wise to develop a system that would both protect the environment and still have a continuous supply from our refineries. The possibility of a single formula must also be examined. One of the obvious impacts would be continuous operations of our refineries without the need to close operations to change formulas. This would help to somewhat stabilize gas prices to some extent as prices appear to change between winter and summer months. Whenever there is a disruption in the flow of supply from our refineries this impacts the prices we pay at the pump although the reason for immediate change cannot be readily explained.

The subject of gas prices and our supply doesn’t seem to get the exposure they require to enable the public to understand the process of how gas prices are determined. To be fair, we often criticize the prices at the pump, but the station owners are the last leg of the supply loop. I have written previous articles related to high gas prices and questioning why the constant change in prices at the pump. One of my comments in the past has been that I have not seen daily deliveries of gas supplies which would trigger some change in price. In relation to this statement, just because I do not see the deliveries does not necessarily mean that some do not actually receive such deliveries.

Along with creating a single formula for refineries to produce, thereby avoiding the closing of operations for a period of time, we must consider the supply of oil we have available. Utilizing the oil resources we have will not only increase the supply but it would aid in having less impact and disruption of the supply, resulting from events such as hurricanes at home or wars overseas.

Utilizing our resources would have a positive benefit with regards to the price we pay at the pump, or at least it should. Another benefit would be an increase in the number of jobs in utilizing these resources thereby impacting our economy in a positive way.

None of us has all of the answers, but the information and suggestions covered in this article warrant them to be reviewed or at least considered. The Environmental Protection Agency is the arm of government that makes decisions with regards to environmental impact for changes in gas formulas we use. The decisions it makes in the future and the decisions they have already made in the past must be closely examined to determine the impact they have caused or will cause on the environment. The proper solution must consider the impact on businesses and jobs and create a balance between the environment and the needs of businesses to have reduced costs. Reduced costs for businesses open opportunities for them to expand, and the expansion offers the potential for new jobs which are desperately needed today.

There is a need for an Environmental Protection Agency at the federal government level, but they need to realize that the decisions and requirements they make have great impact on businesses and our economy. Logical decisions need to be made by this agency in terms of the environmental needs, improvement of the environment, and the impact on business operations. This does not mean to imply that logical decisions have not been made by this agency, but logic is not a concept that the general public considers to be in existence when government agencies or departments make decisions that impact the economy and their lives negatively. This agency can go a long way in changing that perception in reviewing the decisions the agency has already made and by establishing some criteria before making new ones.