WASHINGTON -- Rising gasoline prices, combined with the economic downturn are making people more vulnerable to changes in oil prices, according to an annual index compiled by the Natural Resources Defense Council (NRDC). The report, "Fighting Oil Addiction: Ranking States' Oil Vulnerability & Solutions for Change," provides a detailed look at how oil prices affect consumers' incomes. It also ranks the states that are doing the most to promote alternative energy sources.
The report found that for the third year in a row, Mississippi tops the list as the most vulnerable [image-nocss] state when it comes to a spike in gasoline prices, said a CNN report. The study ranks states based on an income-to-gasoline-price ratiohow much a family makes compared with what they are spending on fuel every year.
"This is very relevant right now. We've seen, in spite of the economy being down, prices rebounding because of the summer driving season," said Deron Lovaas, NRDC's transportation policy director.
Mississippi residents spent 9.14%, or on average $2,702, of their income on gasoline last year, according to the study. Montana ranked second on the survey. South Carolina was third, followed by Oklahoma, Louisiana, Kentucky, Texas, New Mexico and Georgia. Rounding out the Top 10 was Arkansas.
Residents in Connecticut ranked at the bottom of the list as the least likely to be affected by spiking gasoline prices, spending only 3.24% of their income, or on average $1,824.58, on fuel last year.
The study measured other factors as well, including how much driving a person does and how much gasoline he or she consumes. Montana, ranked second-most vulnerable, is a rural state where residents drive farther to get to places such as work and school. Residents there will have a bigger gasoline expense than residents in, for example, New York City, where people use public transportation and travel shorter distances.
Energy analyst Bill White, with the environmental consulting firm Gardiner & Associates, was part of the study. "We are measuring vulnerability, and people who spend a higher share of their income on gasoline are more vulnerable to rising gas prices. We're concerned with working folks and their vulnerability to this. If they don't have alternatives and the policies aren't moving in directions to provide them with alternatives, they will continue to be vulnerable."
NRDC said Americans do not have any choices when it comes to fueling their vehicles, which means no control over increasing gasoline prices.
"In 2008, Americans consumed a whopping 362 million gallons of gasoline," Lovaas said. "And with about 200 million registered drivers, that's between one and two gallons a day per person. We consume a tremendous amount of gasoline, and it costs us a lot of money. All told last year, Americans spent about $428 billion on gasoline."
Most of the oil in used in the United States does not come from domestic sources, and Lovaas said that is part of the problem. "Our biggest importers, granted, are from friendly countries. But we also import a lot of oil from countries like the OPEC countries in the Middle East, as well as Russia and Venezuela. So unstable and sometimes hostile partners are ones we have to rely on to slake this tremendous thirst for gasoline," he said.
But critics say those now vulnerable to oil and gas price increases, such as lower-income families, would still be most vulnerable under alternative fuel programs. They would still have to pay more proportionally from their income for biodiesel fuel or electricity. Price surges for any fuel would affect those making less.
The executive director of the North Carolina Petroleum Council (NCPC), Bill Weatherspoon, blames the council and other environmental action groups like it, for what he calls a scarcity of fossil fuels contributing to higher prices. "People who are paying a lot for gasoline have the NRDC to thank for that, because that group has stopped the search for new clean-burning fuel we'll need in the future through government regulations," he told CNN. "We want to find clean-burning natural gas and oil here at home. We know we can."
But Lovaas said it's not about disliking certain fuels. "This is a big problem in terms of our economy, in terms of security and in terms of the environment. Transportation is responsible for about a third of global-warming pollution in this country, and from 1990 to 2005 it was the fastest-growing sector," he said.
NCPC spokesperson Michael Oko told CNN, "We think there should be alternatives and that people should have choices. So they should be to look at plug-in hybrid cars. And they should be able to look at possibly doing ethanol or other biofuels as alternatives. And that's what we're trying to give people, the choices, [so that] we're not dependent solely on oil."
"Choices are always a good thing," Weatherspoon agreed. "Choices are good in the energy market. To have innovative new technologies come into play, that's all wonderful, that's good. But we have to remember the consumer will support a new technology provided it has a good price."
And Americans are going to support the dependable fuels, Weatherspoon said.
The "Fighting Oil Addiction" study also ranked states that are doing the most to promote clean-energy technologies and reducing dependence on oil. California tops the list, followed by Massachusetts, Washington, New Mexico, Connecticut, New York, New Jersey, Pennsylvania, and Oregon. Florida rounds out the Top 10.
The NRDC is a national, nonprofit organization of scientists, lawyers and environmental specialists dedicated to protecting public health and the environment.
Click hereto read the full report, including the complete state-by-state ranking and chart.
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