There was a saying when I was in my teens that everything and everyone is connected in one way or another.  It was similar to “If a tree falls in the forest and nobody is there, does it still make a sound?”

There is no right or wrong answer to either question, however, everyone seems to have an opinion and a viewpoint of their own for each question.  As we look at the global economy, these questions come to mind. 

During the past few years, we have watched as oil prices have skyrocketed from double digits to over $4 per gallon in the U.S., and higher prices in other countries, with the forecast of prices going even higher before long.  As a result, we have seen a substantial rise in food prices, a decline in stocks, a large increase in layoffs and lost jobs and families losing their homes more than ever before in history.

These issues are so important that both the Democratic and the Republican National Conventions spoke about them in the past two weeks. 

Looking at the bleak situation, there are connections between many of the problems.  Let’s start with the fuel crisis.  The cost of fuel has become so high that many people are leaving their cars at home and opting to take the bus to work if there is a bus line available.  The problem is that many cities, including major cities such as Denver, are eliminating bus routes just when people need them most, because the cities can’t afford the gas to get to some areas.

The fuel crisis has affected manufacturing to the extent that many auto makers have laid of thousands of workers because the demand for luxurious gas guzzlers of a few years ago has evaporated.  There are talks of converting plants to start manufacturing hybrids and other fuel efficient cars, but that will take time, money and training.  Meanwhile, people are out of work.

Adding just one more thing, farmers and truckers are being hit hard, as well.  It takes fuel to plant and harvest crops and it takes fuel to transport them to the market place.  With costs going up, some trucking companies and farms have gone out of business while others are simply trying to hang on and wait it out.

There is no need to go into the rest of the story.  We all know what’s up.  What is important to think about is the answers to the questions at the beginning of this article.  If we are all connected – even by a small, thin thread – it is time to work together to find solutions to this crisis.  Even if we each do one tiny thing – recycle, conserve, carpool – it could add up to the difference between a trucker or farmer staying in business or having to close their doors.

There are a million things one might think of when they think of the fuel crisis.  Many of us think of higher prices for travel, higher prices for food, a four day work or school week with added hours each day, bills that are harder to pay, and other results of the issues we are having with fuel.

One thing that we might not have thought about – and I certainly have not, until now – is traveling carnivals.  Yes, these carnivals are being hit pretty hard because traveling carnivals need fuel for most of what they do.  Fuel is, of course absolutely necessary for the carnivals to actually travel.  A lot of fuel.  Many of the traveling carnivals drive by trucks that use diesel fuel – which has become very pricey lately. 

Traveling across regions, states and even the country, is expensive even without the fuel crisis to deal with.  Consider, though, the fact that food, lodging, fuel for rides and other costs have gone up accordingly. 

This has become enough of a problem for some carnivals to reduce the amounts of miles they have to travel.  They have cut out some of the cities they visit and they have decided to stay within smaller areas to contain costs.  They have also cut some of the rides they offer in an effort to save fuel and money.

This may seem like a frivolous issue when compared to the fuel crisis itself, issues with the economy, wars, politics and other problems, but it is not.  It shows that some of the things that we take for granted have been affected by high prices for fuel.  When we are at the point where the neighborhood carnival – a tradition that has rolled into towns across the country for decades – is diminishing, it is time to take note and try harder to fix some of the problems. 

If not, what’s next?  Will we end up losing the ice cream man, too?

Good news!  The cost of fuel has dropped during the past two weeks, and it is predicted that this trend will continue, at least in the short term.  This is great news for consumers, or is it?

Some economists are predicting that because of the drop in prices, there could end up being fuel shortages for short periods of time if the prices continue to fall.  The way that this would happen is that fuel retailers would maintain lower amounts of fuel stock waiting for prices per barrel to continue falling, rather than buying at the current price and having to sell the fuel at lower prices at the pump when the current price per barrel continues to fall.

In the meantime, there is a second half of this bizarre situation, which makes some sense from a business point of view.  The second half of the scenario is consumers.

As consumers see the prices fall, they will wait until the last minute to purchase fuel, and then fill up at the lowest price possible.  If the price drops significantly, consumers will possibly be in a rush to purchase while prices are down, creating the need for more fuel.  With fuel companies keeping their stock low and trying to buy in bulk at the lowest price possible so they can sell at a profit, and at the same time, consumers trying to purchase as much fuel as possible at the lowest current price, there could be a shortage created.

Economists feel that the shortages would be a day or two at a time and would not necessarily become a long-term situation, however, it could still lead to a lot of concern and possible chaos for both consumers and fuel retailers.

Even with the drop in prices, however, fuel will still remain expensive to purchase.  In addition, economists advise that to avoid a shortage in your personal situation, it might be good to spend the extra 2 cents per gallon and fill up your tank, not waiting for rock bottom prices to see what happens.

During the past couple of weeks, the soaring cost of fuel has gone down a bit from an average of around $4.50 per gallon to a little over or under $4.00 per gallon, depending upon where you live. 

Every little bit helps, so we are not complaining about the savings we are seeing lately.  However, there are predictions that fuel prices will begin to climb again, and that this climb may be steeper than the last.

This is a difficult situation to fathom.  When prices went near $3 per gallon, people were stunned, and when they went above $3 it really started to hurt consumers.  Now that we have been over $4 per gallon, it has not only hurt consumers at the pump, but created an economic mess in the United States and other countries, as well. 

The cost of fuel has affected the cost of food, clothing, air travel and just about everything else we can think of.  It has become overwhelming for many, and there is already great concern about what various areas will do about heat this winter, and what farmers will do to be able to afford fertilizer for their crops.

If this isn’t bad enough, there are news articles and reports coming out of everywhere stating that gas prices will continue to rise and could get to as high as $7 or $8 in the United States and $11 or $12 in Europe by early 2009. 

There is no way of knowing if these reports are based on anything but fear, however, it is certainly possible that fuel prices will continue to rise until a solution to the crisis is found.  The technology is available for creating and using alternative fuels, as well as creating other fuel and energy sources.  In addition, the idea of more drilling has been tossed about a lot lately. 

Regardless of what method or methods are used to deal with the fuel crisis, it is likely that prices will waver up and down until they finally level off, hopefully at a number that we can all find a way to live with somehow. 

In the meantime, lawmakers will keep going back and forth about the appropriate solution, and we will be keeping our eyes on the pump and watching how much we drive. 
 

It’s no secret that the fuel crisis is out of control and it is hurting people from one end of the country to the other.  Whether you are a farmer, a secretary, a city worker or an executive, paying $4 or more for gasoline hurts the budget, the wallet and people’s everyday lives. 

Some workers are opting for lower paying jobs closer to home because they can’t afford to pay for the gas.  Because other companies are struggling financially, other workers are being laid off.  There is not enough money to pay for their wages and for the cost of fuel to keep business going.

The country has been speaking out, crying out and begging Congress to come up with some sort of assistance.  People are looking for and hoping for a plan that will at least begin to address the fuel and energy issues for the short and long term, and begin to bring some relief.

It is possible that his is finally happening.  Senator Lindsay Graham of South Carolina has co-sponsored a bill that may address some of these issues.  This is a bipartisan issue and a bipartisan bill that both sides of the aisle seem to be taking note of and taking a positive view toward.  In fact, both John McCain and Barak Obama, senators running for president who rarely agree on anything these days, agree that this is a good start and could begin to energize lawmakers in an effort to actually start solving the fuel and energy crisis in this country sooner rather than later.

We have been warned for over a decade that by this point in time the U.S. would be dependent on foreign oil if it did not develop alternatives, but the warning was not heeded as a serious issue soon enough.  In 2006, when gas prices were around $2.50 per gallon, they cry for a change was raised with little or no assistance from Congress.  As a result, the country gets nearly 70% of its oil from foreign countries.  Thus, the crisis we face now.  Instead of being ahead of the curve and developing alternatives, gradually using less foreign oil over the past 15 to 20 years, we have done the opposite, and now have to rush to come up with plans to turn the situation around.

The new plan, backed by 10 senators from both parties, features money to U.S. automakers for creating fuel efficient/alternative energy cars, tax credits to individuals who purchase those cars and other measures, including incentives for offshore drilling. 

There are no guarantees, but at least Congress is hearing the voice of the American people who have been trying to get their attention regarding this matter.  Hopefully more lawmakers from both sides of the aisle will agree to communicate in a positive way and finish creating this plan and making it comprehensive enough to truly to help citizens who are being hurt in many ways on many levels by this fuel crisis that could have been avoided in the first place.

When we think of the fuel crisis most of us think of our own commute to work or to the grocery store or to pick up the kids from school.  We might think of some of the trucks that we see on the highways, or, when we see the prices rising at the market we remember that the trucks that are transporting our milk, bread, meat and vegetables – and everything in between – are paying a heavy price to stay in business, in fact, in the first quarter of 2008 alone, over 1,000 trucking companies went out of business.

One of the areas we don’t seem to think of much is that of fishing.  If you have noticed that the price of fish at your local market has gone up considerably, it is because of the same fuel crisis that the truckers, their families and our families are experiencing. 

Fishing boats use diesel fuel, which used to be the least expensive of the major fuels, but now is one of the most expensive.  The fishing boats that had to pull in 50 fish to break even, now have to pull in 70 or 75, making it much more expensive for them to do their work.  Fish that cost $2 or $3 per pound a year or two ago cost twice that now.

Some fishing crews in other countries have reported using smaller boats, often without using motors, in an effort to save money because there is little or no fuel involved.  Fishing crews are doing all they can to try to survive – making a profit is not even a possibility in many cases.  In fact, some smaller fishing businesses are reportedly only able to afford to catch enough to sell a very minimal amount of fish locally and save the rest to feed their families.

When dealing with the fuel crisis in our own businesses and families, it is important to note that none of us except perhaps the super-rich is immune to the far-reaching effects.  Only time will tell how this crisis will be harnessed and if we will move beyond it into a better economy.

There are some things we can be sure of, even in this world full of surprises and unexpected events.   One of these things is that the sun will rise each morning.  That’s something we all depend on and know will happen, and that’s a good thing.  It helps us know that our world is still moving the way it should, regardless of all of the things that are happening on the planet or to the planet. 

Another thing we can count on – unfortunately – is that, like the sun, gas prices will continue to rise.  They have more than topped the $4 price just about everywhere in the country.  California is at the top of the list with gas prices at over $4.40 per gallon, with other states close on its heels.  The lowest prices are in Texas and several neighboring southern states, with the cost per gallon hovering between $3.68 and $4.00 per gallon.

This gas crisis has put a huge dent into vacation plans, employment location and more.  People are limiting the amount of “luxuries” they buy in order to offset the cost of gas.  Vacations are being cancelled – or at least postponed in hopes that the gas prices will be more affordable at a later date, or that the family can save up enough money to offset the cost of the furl they will need to get to where they are going.

Gas prices are affecting everything from food prices, vacations and jobs.  They have changed the way Americans – and countries throughout the world – do business, shop, run their homes and their lives.  Gas prices are quickly becoming one of the top election issues, with the average American looking for the government to solve this crisis.

Researchers are looking for – and finding – ways to use alternative energy sources, however, making changes that affect millions of people takes time. 
Maybe as the prices continue to rise, someone will come up with a solution to the problem – or at least some relief.

Until then, we will all have to figure out a way to deal with gas prices hovering around and average of $4.20 per gallon and the changes it causes in our lives.