$100 Fillups

NYT reports on how $100 for a tank of gas is the new pink.

I hate expensive gas, but at the same time, when I can see things from the longrun, I know that rising oil prices are the mechanism by which we transition to alternative fuels. The higher prices force consumers to eventually substitute towards less expensive methods of transportation living, for instance. They buy more fuel efficient automobiles, live closer to their works, and otherwise sprawl less than before. But it's also the key by which producers begin to explore opportunities. This includes expanding production, but it also includes R&D, exploration, and other attempts to increase profits by taking advantage of higher prices.

In the end, I suspect we need even higher gas prices if there really are negative externalities associated with gas consumption.