Saturday 14 April 2012

Blue State, Red State, Pricey State, Cheaper State

Forgive the Dr. Seuss-eque title, but it serves to illustrate a point. The graph below shows a relationship, which is truly intriguing. US States which lean Republican tend to have lower gas prices than those that lean Democrat. Yet, residents in 'Red' States pay more on average on gas consumption per month owed to them driving more miles in less efficient cars. More here on how an oil glut is creating these price differentials which, historically, were not as pronounced.


The philosophical divide that exists to facilitate the situation shown above is significant; especially since high gas prices are quickly become a top 2012 Election issue. For many Americans in 'Blue' States elevated gas prices are simply not the number one issue at the moment, but for others they do good by making the clean tech industry more viable. Energy Secretary Steven Chu is certainly shared this view. On the other hand, Republican voters are most concerned with high gas prices and aren't fond of the Administration's perceived hostility toward fossil fuels. Electoral math thus begs the question: where do 'Purple' States stand?

It's hard to forecast how heavily gas prices will weigh on swing voters' mind come November. People around the country are in debt and it's hard for a working class family to share the President's long term goal to facilitating nascent renewable technologies.

The Obama Administration understands that in order for the US to lead the future clean tech market, it must be the first to develop its technologies. There are nations around the world which will always produce things at a lower cost than the US, which is why technological expertise will be more a necessity than an advantage for the US. Be that as it may, preparation for the future Energy mix should not get in the way of today's realities. For the President to win in November he needs to convince swing voters that he shares this view. Most importantly, the President will have to sell his 'All of the Above' energy plan as being more than just a slogan. The public wants - deserves - an energy plan.