“Bill” Board Day 3 – Need a job, better find one close to home

Energy is the lifeblood of modern business and civil society.  Energy comes in many forms, but none so useful as oil which can be used in many different applications, the most important of which is transportation. Oil’s liquid form, stable properties, and higher heating value allow it to be used in ships, airplanes, trains, trucks, tractors, automobiles, and other vehicles and tools. Gasoline, a petroleum product, fuels the cars we drive to work and the tractors that grow our food.  So, when the price of gasoline goes up, so does the price of everything else. If you are driving around every day, looking for a job, better find one close to home!

Since 2009, according to the Bureau of Labor Statistics, the average price for unleaded regular gasoline has increased from $1.787 per gallon in January 2009 to $3.451 per gallon in July 2012 (the most recent data at the time of the advertisement’s creation).  This is an increase of 93%. Stated differently, if your family is a two income family that drives two vehicles a total of 19,850 miles per year (family average, 2009, according to the Department of Energy) at an average of between 19 and 23 miles per gallon (assume 21 mpg), then your additional cost in 2012 is $1,573 per year.

But, $1,573 per year is just the direct, visible cost of this increase in gas price.  Everything you buy is transported.  The indirect cost is reflected in increased prices in food, clothing, and other material goods.  Those price increases are the subject of another “Bill” board. 

Feeling better about your situation?  Depressed?  Hold on, don’t run out of energy or enthusiasm yet.  There is more to be revealed … unfortunately, most of it is not good.

November 6^th can come soon enough.