The soaring prices of our everyday lives – oil, water, energy, and food – otherwise known as the Four Horsewomen of the Apocalypse. Famine, Death, War, and Pestilence have nothing over these chicks. You may not have heard of the HorseWomen, but their pull on your wallet is real. Let’s take an in depth look at each of these foul creatures and their impact on your life and mine.
In a later article, I’ll give you tips and tricks on how to outsmart them and keep their hands out of your wallet.
Part 1 – She Rode in a White SUV
No HorseWoman gets more press then this one – The HorseWoman of Oil. Rising gas prices have been at the top of every news station and every media outlet since before the cost of a barrel of oil started tipping above the critical $100 mark. As I was doing some research for this piece, I came across an article entitled “Can We Expect $100 Barrels of Oil in 2006? – Oil Futures Say No” (http://economics.about.com/od/theoilsupply/a/oil_futures.htm). This article was written on August 15, 2005 and predicted that a barrel will only cost $61.39 by December of 2007. Oh, mighty HorseWoman thou hast come swiftly and with a mighty roar.
Oil prices have far surpassed predictions and there doesn’t seem to be any sign of decline in the near future. Oil in 2008 alone has surpassed $100, $120, $130 and is now hovering around $136 and anticipated to rise to $150 in the next few months. This effects us in multiple and somewhat unexpected ways.
Gasoline. This is the route that everyone expects. The rise in barrels of oil equals the rise in the cost of the gasoline which is extracted and refined from the oil. The price at the pump is a combination of the cost of the barrel, the amount of taxes on it, the cost to refine it, the share of profit that the refining company takes, the transportation of the gasoline to the stations, and the profit of the service station. Each step along the way increases the cost to you and I. If refineries in Saudi Arabia can’t produce as much as they used to, if supplies diminish, if demand increases, if oil wells run dry, it will effect you and I.
Transportation for goods and people. This is connected to the gasoline issue but is integrated into all parts of our modern life. If it costs more to ship something, then this increased cost is passed on to us as consumers. So if an item that is coming from across the country used to cost $2.50, it now may cost $3.00, simply due to the rise in the Jet fuel cost and the diesel cost from the rise in oil expenses. So not only does it cost more to fill up your tank for your daily commute, it also costs more for your plane ticket. This transportation cost has directly influenced postal rates, which have gone up every year for the past three years.
Plastics. Yes, plastics. Plastics are manufactured from the same petrochemical as the fiber polyester. So the carpet you walk on, the water bottle you drink from, the CD you’re listening to, and the clothes in your closet are all made from oil. Our hospitals are covered in plastics. We live in a single-serve plastic-container world.
Medicines & Foods. Just the name Petroleum Jelly betrays its origin. But did you know that a common ingredient in well-known, over-the-counter pain relievers also use oil? Look for Acetylsalicylic acid, or ASA in your favorite brand. An oil derivative is also used as an additive in our food processing, aiding to the shelf life of our canned goods. Fertilizers that grow our crops also have oil products in them. Our food supply would be cut in half if it wasn’t for the products in our pesticides and fertilizers.
Stay Tuned for Part 2 – The HorseWoman of Water
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