Perspective at the Pump

I groan a little bit every time I drive by a gas station on my way to work. When I'm actually pumping and paying to fill up my tank, I groan a lot. The dismal projections presented by the media consistently remind me that prices are only going to go up. In order to cope with my disdain for the absurdly high gas prices, I try to gain a little perspective at the pump.

Historically, prices have risen and fallen based on supply and demand. Dips, crashes and spikes occur because of what economists call "uncertainty," or what can generally be referred to as fear and speculation. Uncertain positions make it difficult to hedge against risks for businesses and people alike. What is causing uncertainty in today’s fuel market? The revolutions and upheavals of people in the Middle East and in Africa are causing a global stir.

On a worldwide scale, about 30 percent of the world's oil supply comes from the Middle East and an additional five percent comes from North Africa. Large oil companies like Eni, an Italian oil giant, have invested billions of dollars into Libya and its abundant oil supplies. This company and others like America’s ExxonMobil and England’s BP have considerable stakes in the oil supply in Libya and, in turn, the country’s economic stability. They have signed long term agreements with the current regime and they have ample experience building relationships and operating within the established system.

But now, citizens are rising up in the name of freedom throughout the region in Tunisia, Egypt, Morocco, Yemen, Bahrain, Kuwait, Saudi Arabia, Iraq, Iran, Jordan, Libya and possibly more to come. As the economic stability of these countries becomes shakier, so do the contracts and agreements between their respective governments and the multinational oil companies.

Total world oil consumption is about 87.5 million barrels a day. On any given day approximately 250,000 barrels are extracted from oil wells in Libya by Eni alone. Large multinational oil companies in this North African country produce about 1.7 million barrels of the world’s daily oil supply. Shipments of oil are transferred through ports like those in Egypt, and much of it must travel through the now even more precarious Persian Gulf. Finally, after navigating international waters, the oil finds itself in the form of gasoline at our local gas stations.

After examining even this simplified supply chain, it is easy to see why there is so much fear and speculation about oil prices. Not only are many points of supply being affected, but the path for transportation and ports of entry are being rocked as well. As citizens of these countries begin to unite for the sake of their rights and their future, through the phenomenon of globalization we feel their struggle having a ripple effect on our lives at home. We see our gas and other related prices rise, and not so gradually.

The citizens of these countries on the other side of the world have long lived without simple human rights. The educated youth went without jobs. People were imprisoned without trials. Many endured the growing gap between the rich and the poor. At last, they are saying collectively and resolutely, “No more.”

We are not on the front lines. We do not endure tear gas, Molotov cocktails or aerial bomb strikes. We are not fighting vehemently for our human dignity. However, at the same time we are experiencing history in the making. The global markets tie us together. The Libyans fight for their human rights and because their country is also the 13th largest exporter of oil we watch our prices at the pump go up. And maybe that is for the best.

Our worlds are interconnected, the strife of protestors in the Middle East and Africa affects us. Although it would be foolish to say that we are helping them make history, the higher gas prices can act as a link between us and our fellow world citizens. Maybe the prices are an opportune reminder that we are compatriots. Whether we like to admit it or not, our worlds are connected. We can no longer remain disconnected from and ignorant of the struggles abroad.

As Americans, we pride ourselves on being a global leader in freedom and human rights. We should be supporting, and not bemoaning, this incredible movement towards democracy. The fight for democracy should not be rushed for the sake of our wallets. Instead of hoping for swift stability we cheer for the side of human rights. We can hope that at the end of this struggle, it will have not all been in vain: the blow to our bank accounts in this fragile economy, but more importantly, the decades of injustice and the innocent lives lost in the fight. In this game of economic uncertainty, we should be betting on the side of people reclaiming their lives, their freedom and their dignity.

It would be a shame if these sacrifices, both big and small, were made only to have people throughout the Middle East and Africa lose the fight for the prosperity of their future. Those individuals deserve to reap the rewards of their amazing feats of faith and endurance. As we watch the international news and track the rise and fall of gas prices, in an abstract way, we are all in it together. We can continue to endorse human rights in the attitudes we promote, the people we elect, and the policies we support. Until there's some peace and certainty for our compatriots abroad, I can be thankful I have the thing they are risking their lives fighting for: freedom.