The Problem With Lower Oil Prices

There are several downers about high oil prices. Gas is more expensive and so are groceries. Geopolitically, oil-producing countries - some run by dictators - gain power through wealth acquisition. I can count on one finger the number of reasons why a U.S. president would personally visit Saudi Arabia with hat in hand: to request lower oil prices, as Bush did earlier this year.

Yet, there is a substantial benefit to uncomfortably high oil prices: people begin to change their habits. And now, just when Americans are using more public transportation, when biking suddenly makes sense... just when hybrid and low-emission vehicles are taking off and Detroit is "bolt"ing for electric vehicles - just when we were essentially becoming better stewards of the environment, gas has dropped from over $4 a gallon to about $2 in less than six months. Now, there is a side of me that really likes seeing lower gas prices. I call it the "I-didn't-buy-a-Yaris-to-still-be-paying-$40-to-fill-it-up" side. But lower gas prices inevitably means less desperation among consumers, and subsequently, less openness to alternatives.

Geopolitics aside, expensive oil is necessary if Americans are going to become sufficiently primed for alternative energy. Yes, businesses and entrepreneurs are innovating. A "green" movement has begun, but the general public must get on board. Having to pay more at the pump will push us to embrace these innovations more quickly, both as consumers and as voters. It will force us to make environmentally wise decisions, even if initially we're just trying to save some money.

Fortunately for our wallets, gas is down. Unfortunately for the environment, gas is down.