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.
   
   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

Small cars will gain popularity as price of petroleum rises.

Intermediate Benefits of Expensive Petroleum

These benefits are not noticed immediately because they do not occur immediately. These benefits only occur if the behaviour or action is repeated over a period of time. It may take anything from one to six months for these benefits to become noticeable statistically.

1. The higher price of petroleum will lead to more persons looking for other forms of transport to work. Pedal power, like cycling, will have positive impacts on obesity and coronary artery diseases. This will decrease the number of patients suffering from cardiovascular diseases. Hence there will be a corresponding decrease in health costs.
   
   
   The benefits of physical activity on the heart and cardiovascular systems have already been demonstrated.
2. In the intermediate range it may lead more people to car sharing. Car sharing will have a long term consequence increasing social interactions. Social interactions will likely lead to more understanding between people and more appreciation for the other person's perspective of events.
3. As other forms of transport increase the reliance on the car will decrease. This will have positive effects on other industries and life styles. Healthier lifestyles will translate to longer life expectancy and a better quality of life.
4. Other forms of energy will begin to emerge. It is likely that persons who drive short distances will start using rechargeable battery power. short for this will reduces the number of automobile accidents, damage from automobile accidents and fatalities from automobile accidents.
5. Fewer cars on road for an intermediate period of time will lead to fewer repairs, people getting to work more quickly, and increased individual and corporate productivity. Hopefully this will mean more money for the employee and the employer.
6. Reduction in insurance costs. One of the intermediate benefits of higher petroleum prices is a reduction in insurance costs. Reductions in insurance costs for motor vehicle accidents and mortality costs will result in savings for the consumer and the industry. Hopefully this will be a “win win” situation for the industry and the consumer.




Expensive petroleum will reduce the number of accidents and related costs of treatment. Sickness time will also be reduced.


7. Savings in health care costs. The decreased number of accidents will decrease costs of treatment. Reduction in sick time will lead to increased employee productivity.