30 Benefits of Expensive Petroleum

Every change, including the high price of petroleum, has its advantages and disadvantages. The rising price of petroleum has been making headlines from Australia to Zambia. Trucking companies, commuters, governments and the general public have voiced their concerns at the rising price because more expensive petroleum translates into higher transport and production costs for every item in the household. However, the rising price of petroleum has many hidden, not so obvious benefits. I am very pleased that the price of petroleum is where it is and I hope that it increases to about $10.00 per litre. That will effectively end the importance of fossil fuels (petroleum) and the strategic importance of the Middle East as a supplier of petroleum and exporter of terrorism.

Immediate Benefits of Expensive Petroleum

Whenever the price of petroleum goes up, even by a few cents, consumers become alert to the higher price and look for ways to reduce that cost. Immediately drivers begin to drive less and look at other ways to reduce the consumption of petroleum. One other way of reducing petroleum consumption is by driving less and by driving less aggressively.

1. The higher price of petroleum will immediately increase the number of persons searching for a solution to the high price of petroleum. All drivers and stakeholders will look for ways to save money. When the number of people looking for a solution to a problem increases then the likelihood of finding a solution also increases. This increase in the number of researchers will translate into more researchers looking at more remote possibilities for saving petroleum money. Eventually more ideas will be explored and the most optimal solution will emerge.
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   The higher price of petroleum will lead to less aggressive driving. Less aggressive driving will reduce the number of accidents and associated fatalities and costs. A study in Canada has found that for drivers aged 15 to 17 years the rate of accidents declined by 6 % and for drivers aged 18 to 21 years the decrease was 3.2 %. This study looked at fatalities through 2006 i.e. before the latest increase in gas prices. It is now predicted that more than 100 lives will be saved each month. Thanks to the high price of petroleum.

2. The higher price of petroleum will lead to less driving. Less driving will translate to less motor vehicle accidents. This will meant that vehicle owners will save money, so will insurance companies. Hopefully, this will be a win win situation for the insurance companies and the public.
3. The higher price of petroleum will reduce the demand on petroleum. Reduced demand will have the effect of reducing the price. Indeed if no motorist were to buy petroleum even for a few days then petroleum will become cheaper but this is unlikely to happen.
4. The number of cars on the road will decrease. The peak hour congestion will become reduced. So drivers will get to work quicker and will get there using less petroleum.
5. Big cars and sports utility vehicles will become cheaper to buy. However, these will be more expensive to drive.
6. Manufacturing of big vehicles, gas guzzlers, will stop