The States of High Gas Prices
Last time I checked, oil prices were hovering just below $100 per barrel. This reminds me of something I used to obsess about: high oil prices hit some places harder than others.
All else being equal, oil-efficient economies are more insulated from oil price shocks than are economies that require large oil inputs to function. I'm not talking about the amount of oil consumption, but about the "oil-intensity" of an economy. New York state consumes a lot of oil and it also produces a lot of wealth. Other states, such as Louisiana, consume a lot of oil, but don't produce anywhere near as much wealth per unit of energy. (In fact, New York produces five times as much wealth per barrel of oil as Louisiana.)
Just so, when oil prices skyrocket, Rhode Island suffers less pain than Texas. And Massachusetts feels less of a pinch than Wyoming. So at the risk of oversimplification, I'll propose a little schema for the future:
- If the future is likely to bring high oil prices; and..
- We'd like to remain prosperous; then..
- We should probably start weaning our economies from petroleum.
Brilliant, I know.
I guess, one potential lesson here is that our big capital investments shouldn't expose us to decades of oil price shocks. (Yeah, I'm talking to you, highway.) They should insulate us from high oil prices. (Oh, hi there, compact walkable neighborhood.)
So, how do all 50 states stack up? And how does the Northwest fare? Find out below the jump...
