transcript
Speaker 1:
[00:04] Thanks for picking me up for work, Ryan.
Speaker 2:
[00:06] Of course, I'm always happy to carpool to the office. One less car on the road is better for traffic, better for the environment, and better for sharing my favorite podcasts with passengers.
Speaker 3:
[00:16] Of course, Finding Dory is a top 10 Pixar movie. Is that even up for debate?
Speaker 4:
[00:20] I'm just saying, for me, Good Dinosaur is better than Finding Dory. For me, Finding Dory is more like Finding Snorri.
Speaker 3:
[00:28] Take that back, dude.
Speaker 1:
[00:29] What are you listening to?
Speaker 2:
[00:32] It's this movie discussion show called Castatouille. Every single episode is two grown men ranking and re-ranking all the Pixar movies.
Speaker 3:
[00:40] Monsters University.
Speaker 4:
[00:41] Monsters University is your number three. Your head must be in the clouds, like Carl Fredrickson.
Speaker 3:
[00:46] Who's Carl Fredrickson?
Speaker 4:
[00:48] The old man from Up, which I noticed isn't even in your top 10.
Speaker 1:
[00:51] This is what you listen to in the car?
Speaker 2:
[00:53] Yeah, and when I'm at home doing the dishes, or eating, or going to bed, or any moment in life I'm threatened by an uncomfortable silence, I guess I can turn it off. But hey, wouldn't it be fun if we lived in a Pixar movie, and random objects just came to life, and our adventures were filled with funny and emotional lessons about subjects that are borderline too complex for kids? Whoa, what was that flash of white light just now? Was that a falling star?
Speaker 5:
[01:22] Well, hey, y'all.
Speaker 6:
[01:23] Thanks for driving with me today. I'm Vroom Vroom.
Speaker 2:
[01:26] What? I made a wish on a falling star, and it actually came true?
Speaker 1:
[01:32] Wait, this is actually a talking car on our show?
Speaker 6:
[01:36] Yeah, and I'm so excited to be here. I love driving and learning new things.
Speaker 2:
[01:42] Wow. Well, this is really gonna make the drive to the office a lot more interesting.
Speaker 6:
[01:47] Yeah, you're telling me.
Speaker 2:
[01:53] So, Bridget, what's been going on with you this morning with breakfast and stuff?
Speaker 1:
[02:05] Okay, fine. You can turn the podcast back on.
Speaker 2:
[02:08] Okay, thank goodness. Vroom Vroom, could you please turn the podcast back on?
Speaker 6:
[02:12] You betcha. Resume and cast the toey podcast at one hour, 17 minutes in progress.
Speaker 3:
[02:18] Inside Out is outside of your top five. That take has me turning red.
Speaker 1:
[02:33] Welcome to Million Bazillion, I'm Bridget.
Speaker 2:
[02:35] And I'm Ryan, and we help dollars make more sense.
Speaker 1:
[02:39] And for real, we really do have to turn off your podcast to take today's question.
Speaker 2:
[02:44] Oh, yeah, sure. Go right ahead.
Speaker 1:
[02:46] Vroom Vroom, can you play today's question, please? Sure thing.
Speaker 6:
[02:50] Coming right up.
Speaker 7:
[02:52] Hi, my name is Elijah, and I'm a 12-year-old from Cincinnati, Ohio. I've seen the price of a gallon of gas on those big signs. My question is, why does the price of gas go up and down?
Speaker 1:
[03:05] Good observation, Elijah. Listeners, we've probably all noticed the price of gas when we're out and about. Gas stations have these giant signs you can see way down the road. Elijah's right, the prices change from day to day, and they've been really high lately.
Speaker 2:
[03:21] Which is kind of weird, because usually the price of things like milk and tube socks and clicky pins tends to not change from day to day.
Speaker 1:
[03:30] That's true. It might go up slowly over time. That's inflation. The price might go down because we've found new efficient ways to make an item, or prices might spike kind of predictably, like when the price of red roses goes up for Valentine's Day, then back to normal on February 15th. But gas prices are kind of an exception to all that. Global events can sometimes pretty quickly change the price at your local pump. So today, we're going to find out why.
Speaker 6:
[03:59] Wow, that's so cool. What an awesome idea for an episode. Can't believe that's what we're going to do today. How fun is that?
Speaker 2:
[04:07] Okay. So just to be clear, we don't want to finish listening to Castatouille anymore?
Speaker 1:
[04:12] Yeah. We should probably leave it off so we can get our episode going.
Speaker 2:
[04:17] Okay. That's what I thought. I'm going to leave it off for now, and maybe later I'll turn it back on and we can finish listening, because I do want to hear what the number one Pixar's are this week. But yeah, for now, I totally agree. We should answer money questions because that's what our show is about. But okay. All right. Let's take a break and do Asking Random Kids, and then we'll come back and we'll get into the gas prices thing, and then maybe at the end we'll revisit the Pixar stuff. Okay. All right. See you everybody in a minute. Bye.
Speaker 7:
[04:42] Hi, I'm Daphne from Baltimore, Maryland with today's Asking Random Kids, Not So Random Questions. Today's question is, if you could use anything to power cars, what would it be? Candy. Blazers.
Speaker 5:
[04:57] A hyper galactic engine.
Speaker 8:
[04:59] Carb board and glue. If I could use anything to power cars, it would be air.
Speaker 7:
[05:06] It would be solar panels.
Speaker 8:
[05:08] I'll use garbage and turn it into fuel.
Speaker 7:
[05:11] It could be solar panels, so that's better for the environment. And instead of plugging in your car or spending a lot of money on gas, you can just let it charge in the daylight. That was Lucia in Chicago, Sadie in New Jersey, Calder in North Carolina, Liam and Connor in Maryland, and Leilani, Emiliano, and Camila in California. This has been Asking Random Kids Not-So-Random Questions.
Speaker 1:
[05:51] Welcome back to Million Bazillion. Today, Ryan and I are carpooling to work in Ryan's magically talking car while we answer Elijah's question about why gas prices go up and down. Uh, Vroom Vroom, how long do we make it to the office?
Speaker 6:
[06:05] We'll be there in 23 minutes.
Speaker 1:
[06:07] Okay, well, that might be enough time to answer Elijah's question.
Speaker 6:
[06:11] Low fuel, low fuel, low fuel.
Speaker 2:
[06:14] Hey, I think we might be low on fuel.
Speaker 1:
[06:17] You think so? Okay, well look, there's a gas station at this corner. Pull in there.
Speaker 2:
[06:21] No, wait, look at that other gas station just past the light. See, gas is three cents a gallon cheaper. Vroom, vroom, take us to that Tyrannosaur gas just past the light.
Speaker 1:
[06:40] Oh, the machine says to insert card and pull out rapidly, and I'm pulling my card out rapidly and it's still not working. Does anyone work here?
Speaker 5:
[06:47] Yeah, I do.
Speaker 1:
[06:48] Who said that?
Speaker 5:
[06:49] It's me, gas pump number three at Tyrannosaur Gas. You can just call me three. What can I do you for?
Speaker 1:
[06:55] Talking car, talking gas pump. What's next, a talking toaster? I'm trying to buy some gas, but the card reader is being a little finicky.
Speaker 5:
[07:04] Yeah, my strip scanner's on the fritz. Just try your dental tap.
Speaker 1:
[07:09] Oh, it worked, thanks.
Speaker 2:
[07:11] Okay, three, so I see your gas is priced at $4.35 per gallon. Where, may I ask, did that price come from?
Speaker 5:
[07:21] Well, I'm going to let you in on a little secret. I only tell my best customers, or anyone who asks me directly the first time I meet them. Gas prices can be set by an individual gas station owner or by corporate bosses, but it always comes down to the same few things. First, what price is going to make people pull into my gas station instead of that Meatballs across the street?
Speaker 2:
[07:42] Oh yeah, we drove right past it when we saw you were charging pennies less.
Speaker 5:
[07:47] Yep, folks usually do. We gas stations sometimes drop our prices by a few cents to get folks to choose us over the station next door. You know, gas stations make most of their money on snacks and lottery tickets anyway. Gas just gets people in the door. They should probably call us snack stations.
Speaker 3:
[08:07] Ha ha ha ha!
Speaker 6:
[08:08] Snack stations. What a great joke.
Speaker 5:
[08:12] But we can't set our prices too low because we still have to at least earn back what it cost us to buy the gas in the first place. In fact, that's what's really driving my prices up and down. Fresh gas gets delivered to the station daily and the price is always different. So that means we're adjusting our prices daily too.
Speaker 2:
[08:31] Oh, so gas stations don't make their own gas?
Speaker 5:
[08:35] Nope, that's a big job that happens at a factory called a refinery. That's where they turn oil, that thick black stuff, into gasoline.
Speaker 2:
[08:44] Interesting. I'd love to see an oil refinery in action.
Speaker 1:
[08:48] Yeah, I bet it's really cool.
Speaker 5:
[08:49] Eh, maybe. I think it's lots of science and chemicals and very few snacks. Gas stations have a lot of snacks though. It's like I said, people should probably call us snack stations.
Speaker 6:
[09:02] Never gets old. I love it when humans make new words. Snack stations. What a great portmanteau.
Speaker 5:
[09:09] Anyway, if you want to know more, you'll have to talk to my suppliers, the refineries.
Speaker 6:
[09:15] Oh boy, I am full to the brim, Jim. I couldn't possibly have even another drop.
Speaker 1:
[09:20] Okay. Vroom Vroom's all filled up. We better get back on the road. Thanks for your help.
Speaker 5:
[09:24] You're welcome. Y'all come back now.
Speaker 2:
[09:31] Okay, so I really thought this was going to be like a one-and-done sort of answer, but it turns out the price is going up and down even before it gets to the gas station. I wish we could learn more about that.
Speaker 6:
[09:42] Buckle up, my friends. Estimated time to your destination, 16 hours and 34 minutes.
Speaker 2:
[09:48] Wait, what?
Speaker 6:
[09:49] I said make sure your seat belts are securely fastened. We're going to be at the Tyrannosaur Oil Refinery in Texas in 16 hours and 34 minutes.
Speaker 1:
[10:01] Wait, um, Room Room No-No, we don't need to visit an oil refinery right now. See, we're expected at the office.
Speaker 2:
[10:08] Yeah, we'd love to go sometime, but there's no way we could do that drive right now. Yeah.
Speaker 6:
[10:14] I'm locking the doors for your safety, okay?
Speaker 2:
[10:17] Oh, boy.
Speaker 6:
[10:18] Okay, real time update, y'all. We'll be there in 16 hours and 33 minutes. Woo, road trips are so fun.
Speaker 1:
[10:27] Wait, we can't go to Texas. We need to get to our office.
Speaker 2:
[10:30] But Ryan said, and I quote, I'd love to see an oil refinery in action.
Speaker 6:
[10:36] And then you said, Yeah, I bet it's really cool.
Speaker 5:
[10:38] And the gas station pump said, If you want to know more, you'll have to talk to my suppliers, the refineries.
Speaker 6:
[10:45] So I'll take you there. And you don't have to do any of the driving. I got this.
Speaker 2:
[10:49] Vroom Vroom, stop the car. Stop yourself, Vroom Vroom. We want to get out.
Speaker 1:
[10:53] Vroom Vroom, stop, please. We have work we have to get to at the office.
Speaker 6:
[10:57] Oh, just trust me on this. You said you wanted to learn more about oil. Well, that's what we're going to do. Oil, or as the writer Upton Sinclair once called it, oil. Did you know that crude oil comes from fossils of extinct animals and plants that lived and died millions of years ago? That's why we call it a fossil fuel. But you gotta refine it if you want gasoline from that oil. Refineries will heat the oil and add other chemicals in those tall towers to get the gasoline that I personally know and love.
Speaker 1:
[11:44] Okay, thanks for that great explainer on why we need oil if we're gonna make gasoline vroom vroom. You're kinda like part car, part Wikipedia.
Speaker 6:
[11:50] Aw, thanks, doll.
Speaker 2:
[11:52] Oh, what's going on? I must have fallen asleep for a few hours. Where are we?
Speaker 6:
[11:58] Perfect timing. Well, here we are, y'all. Tyrannosaur Oil Refinery, location, Texas, Gulf Coast.
Speaker 2:
[12:06] Wow, this place is really tubular.
Speaker 1:
[12:10] I don't think it's that cool.
Speaker 2:
[12:12] No, I don't mean tubular like a surfer would say it. I mean, there are literally a lot of shiny metal tubes in here.
Speaker 1:
[12:19] That's true, like miles of tubes, and a lot of them are sticking straight up in the air.
Speaker 2:
[12:23] Excuse me.
Speaker 3:
[12:24] Excuse me.
Speaker 1:
[12:26] Is that one of the refinery tube towers trying to talk to us? Vroom Vroom, roll down the window, please.
Speaker 3:
[12:35] Who are you? Are you supposed to be here?
Speaker 1:
[12:38] Uh, yes, we're podcasters trying to find out what causes the price of gas to go up and down so much. And you appear to be a talking refinery tube tower thing.
Speaker 3:
[12:49] Oh, well, I help operate this refinery, turning oil into gas.
Speaker 1:
[12:54] Yeah, that was my guess, taking in your tube-like shape and this general smell and shimmer in the air.
Speaker 3:
[13:00] Yeah, do me a favor. Whatever you do, don't light a match around me.
Speaker 2:
[13:05] So, congrats on the very stinky workplace you have here. How much oil are you going to be refining today?
Speaker 3:
[13:12] Oh, none. We're offline for the day. Actually reminds me, I should shut off the machines. Ah, that's better. I can hear myself think. Right now, we're paused to set up our summer machinery to start mixing our summer blend.
Speaker 2:
[13:30] Summer blend? What is this, Starbucks?
Speaker 6:
[13:36] Because he said summer blend, like how coffee can have a blend. Jokes, I get them.
Speaker 3:
[13:46] Yeah, but funnier when I heard it the first 400 times working here. No, summer blend is what we call the style of gasoline we make from June to September. As regulated by the United States federal government, this gasoline is a little better for the environment in the hot months.
Speaker 2:
[14:02] And then let me guess, it has caramel undertones and a smooth finish.
Speaker 6:
[14:07] Caramel undertones and a smooth finish. Oh, you crack me up, Ryan, because you said earlier the thing about coffee and Starbucks.
Speaker 3:
[14:18] No, summer blend has a low vapor pressure and volatility, which means it's less likely to evaporate from your vehicle, and that's good. This will help reduce smog, but it costs us a little more to make.
Speaker 1:
[14:31] And let me guess, gas stations will be asked to pay that extra cost, and in the end, they'll pass it on to their customers.
Speaker 3:
[14:39] That's how it works. Probably going to mean an extra 15 cents per gallon at the pump in the end, but prices will come down in the fall when we switch back.
Speaker 1:
[14:48] That's just twice a year, though. Why do gas prices change just about every day?
Speaker 3:
[14:52] You know, sometimes a refinery goes offline for other reasons, like there's a massive hurricane, or maybe something breaks or catches on fire.
Speaker 2:
[15:01] Uh, fire at an oil refinery? That seems bad.
Speaker 3:
[15:05] If we stop refining, supply of gasoline goes down, and that usually means the price goes up, because there are only so many refineries out there, and they're all working as hard as they can. And then, competition for the remaining gasoline supply can be fierce.
Speaker 2:
[15:21] Ooh, like in Mad Max, except they call gasoline guzzoline for some reason, I don't know.
Speaker 1:
[15:27] So why not just build more refineries? Would that solve the problem?
Speaker 3:
[15:30] Ha ha, good luck. You can't just build an oil refinery overnight. They're extremely expensive to build. Refineries put a lot of pollution into the air and water, so neighbors usually aren't very excited to have one built near them unless they, you know, like getting diseases.
Speaker 9:
[15:49] Get your car out of the way.
Speaker 1:
[15:52] We got a delivery here, straight from Dubai.
Speaker 6:
[15:55] Excuse me, how rude.
Speaker 3:
[15:58] More like, how crude. Those semi trucks are delivering new supplies of crude oil for when we get back to work. If you really want to get your answer, you got to ask the folks pulling oil out of the ground.
Speaker 2:
[16:10] You don't do that here?
Speaker 3:
[16:11] No. Oil comes from all over the world, and drilling it is a global business. The price we pay for a barrel of crude changes all the time, and we have to account for that in the price we charge the gas stations for refined gasoline.
Speaker 2:
[16:27] All right. Well, we better be going. Thanks for your help, Tube.
Speaker 1:
[16:31] Yes. Thank you for all that information. It was so helpful for answering our question. Thanks.
Speaker 2:
[16:34] Bye. Well, that refinery was interesting, but I guess there's even more to the price of gas that's decided at the crude oil stage. You know, one day it would be interesting to go to Dubai and check out their crude oil situation, but don't get any ideas, Vroom Vroom. We really gotta get to the office.
Speaker 6:
[16:58] What's that? Go to Dubai?
Speaker 2:
[17:00] Hey, wait, wait, wait a minute, Vroom Vroom.
Speaker 1:
[17:02] Nope, nope, don't even think about it.
Speaker 6:
[17:03] That's just what I was thinking. Gee, great minds think alike.
Speaker 2:
[17:06] I said one day I'd like to go to Dubai, not now.
Speaker 6:
[17:10] Okay, let's see here. Should just take us about 14 hours and 37 minutes to get to Dubai, United Arab Emirates.
Speaker 4:
[17:18] No, Vroom Vroom, no, no, no.
Speaker 1:
[17:20] We have so much work, we still have to get done. You don't understand because you're a magical speaking car, but there's like emails and Slack messages we need to reply to.
Speaker 6:
[17:28] I'm helping you with your podcast, silly. Answering Elijah's question, remember. Oh, and I know a falafel place you are going to love. It's right next to the gas station with the best unleaded I've ever tasted.
Speaker 1:
[17:41] We can't just drive to Dubai. It's in the Middle East across an ocean.
Speaker 6:
[17:44] Which is why I'm driving us into this cargo freighter, especially designed to fly cars through the air.
Speaker 1:
[17:52] Everyone all aboard and comfy? Oh, don't tell me you talk to air freighter. Now buckle up and we should be in Dubai in no time. This is the last time I carpool with you, Ryan.
Speaker 2:
[18:01] Look, I didn't think a bunch of vehicles were gonna magically come to life today. Okay, we'll learn more about the price of gas and try to get home when we come back.
Speaker 9:
[18:15] The economy moves fast and when headlines turn on a dime, it is essential that you feel informed rather than overwhelmed. Hey, I'm David Brancaccio, Special Correspondent for Marketplace and an avid reader of the Marketplace newsletter, not that I'm impartial. Every Friday Marketplace curates must read stories from the week and delivers explainers right to your inbox. So, if you want the latest from me and our team of award winning journalists, head over to marketplace.org/newsletters and sign up today.
Speaker 1:
[19:03] Welcome back to Million Bazillion. Today we're trying to find out the answer to Elijah's question, which is, why do gas prices go up and down? We're still looking for the answer, and to help us out, Ryan's car Vroom Vroom has taken us on what I'd call a significant detour.
Speaker 2:
[19:17] Ah, that was a long flight.
Speaker 6:
[19:20] We've made it to Dubai. Local time, 11 a.m. Local temperature, 102 degrees. Let's head to the nearest oil drill.
Speaker 2:
[19:29] Okay, fine, whatever.
Speaker 6:
[19:30] All right, let's do this.
Speaker 2:
[19:30] Better be air conditioned, Vroom Vroom.
Speaker 1:
[19:34] Whoa, that looks like a pretty nasty sandstorm outside.
Speaker 6:
[19:38] Yes, the kind of sandstorm that may make it difficult for oil trucks to get in and out. Look, I see the exact oil drill to talk to. Bridget and Ryan, meet Derek.
Speaker 10:
[19:50] Hello, everyone.
Speaker 6:
[19:51] Derek, Bridget and Ryan are trying to find out why oil is always going up and down.
Speaker 10:
[19:56] Like I go up and down? Pumping crude oil out of the ground?
Speaker 2:
[19:59] More like, why does the price of gasoline go up and down so much? We've done our research and it turns out it all starts with the crude oil.
Speaker 10:
[20:08] Oh, that's quite a question. I don't think anyone's ever asked me that before. And I've drilled oil for all the big companies. Tyrannosaur Gas, Exxon, 76.
Speaker 2:
[20:18] 76!
Speaker 10:
[20:19] Well, sometimes it's about supply. You know how when it comes to price, the more you have of something, the cheaper it's going to be? Well, the supply of crude oil in the world is changing every day. Depends on how much we're able to drill. And then you've got these guys, OPEC.
Speaker 2:
[20:37] Oh, like those antibiotics the doctor gives you for bronchitis?
Speaker 10:
[20:41] No, that's ZPAC. OPEC is a group of oil producing countries that work together to decide how much oil they're going to drill and release for sale. They can drive the price down by releasing a lot of oil.
Speaker 6:
[20:53] The list of OPEC nations today includes Algeria, Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela. Oil really is a global business.
Speaker 10:
[21:09] You were always good with geography, so I'm always trying to figure out how much are they selling? How much should I sell? Who around the entire globe is buying? You get the idea. Sometimes, I just can't drill as much oil as I thought I could. Like right now, with that sandstorm picking up steam. I might need to pause for a minute. These sandstorms and other extreme weather events have gotten more intense because climate change is happening.
Speaker 2:
[21:38] Well, you say climate change is happening, but isn't your oil company causing it? You're like the reason the planet is getting hotter.
Speaker 10:
[21:47] I prefer to think of climate change more as a thing that's happening. Like when a dish drops to the floor and breaks. No one knows how that happens.
Speaker 2:
[21:57] Yes, we do know because someone dropped the dish. In this metaphor, you're dropping the dish. Why are you being so passive?
Speaker 10:
[22:03] I'm not being passive. Passivity is happening in the discussion. Okay, all right.
Speaker 2:
[22:09] What else can make the price of oil go up or down?
Speaker 10:
[22:12] Well, the financial markets. Oil is a commodity. There are people who make money by betting on how much a barrel of oil is going to cost one day to the next.
Speaker 1:
[22:21] Oh, right. And sometimes that kind of betting can change the price of a barrel of oil for no real reason related to the actual supply or actual demand for that oil.
Speaker 10:
[22:31] Yeah. So if you really want your answer, you're going to have to talk to a commodities trader.
Speaker 1:
[22:37] Don't say it or else Vroom Vroom will take us to some oil trading floor next like the New York Mercantile Exchange or something. We're going to make do with the answer you gave us. Thanks, Derek. Yeah. We'll call an energy analyst or something if we need to. Don't worry about us yet. No need for any more unauthorized road trips for this crew. Thank you so much. Okay. Bye bye. Bye bye now.
Speaker 2:
[22:56] See ya. I can't believe we just flew 14 hours for about 14 seconds of explanation and everyone just has the same answer. Go talk to someone else. We're not really any closer to knowing why the price of gas is so high right now. Also turn up the air Vroom Vroom, I'm sweating here.
Speaker 6:
[23:14] It's okay, Ryan. I have all the answers you need. I like to be helpful. Plus, I watch the news. You see, oil is bought and sold by people all over the world. It's a global market.
Speaker 2:
[23:26] The global market? Oh, is that that store where everything smells like wicker potpourri?
Speaker 1:
[23:32] No, you're thinking of world market. The global market is a way to talk about the things that countries buy and sell from each other. Think of it like a web of buyers and sellers that transcends all geography and crosses all borders.
Speaker 6:
[23:46] Yes, it's a big concept that's kind of hard to picture. So maybe try thinking of it like a farmer's market. Imagine it's a Sunday. You have the day off, so you're strolling around the global market. There's different booths set up. Each one is from a different country. You stroll around and you buy a car from South Korea, some medicine from Germany, and a TV from Japan.
Speaker 2:
[24:16] This sounds like an expensive day at the market. Do they take cards or just cash?
Speaker 1:
[24:20] Well, remember, this is an imaginary market.
Speaker 2:
[24:22] Oh, yeah, I forgot. Okay, sorry.
Speaker 6:
[24:23] Now, imagine you pass a booth selling crude oil from Saudi Arabia, and across the aisle, another booth selling crude oil from the United States, and yet another booth selling crude oil from China. They're on lines at every booth. Pretty much the whole world is buying oil from somewhere.
Speaker 2:
[24:41] Okay, all right, I'm picturing it.
Speaker 6:
[24:43] As it happens, some of the places where the most oil is drilled, can be at most risk for conflict and crisis with other nations. So hypothetically, let's just say that the United States' booth, oh, I don't know, launches a series of attacks on the Iran booth.
Speaker 1:
[25:01] Wow, not what you usually expect to see at a farmer's market.
Speaker 6:
[25:05] Iran is in the Middle East, where a lot of oil is drilled. Now let's see what happens next. The fighting spreads to countries nearby, and that can slow down how fast all those countries are able to pull oil out of the ground and send it out to the rest of the world. Oh, and in a war, the demand for oil goes up too.
Speaker 11:
[25:26] We need oil to fuel all these fighter jets.
Speaker 6:
[25:30] In the meantime, the customers who were in line at Iran's booth, now they have to start looking for another place to buy their oil.
Speaker 11:
[25:38] Where am I going to get my oil from if I can't buy it from Iran?
Speaker 4:
[25:42] Got to have that oil.
Speaker 6:
[25:43] And all the while, that part of the global market making cars and TVs, well, they still need oil to be able to operate. So now there's more competition to buy the oil at the remaining booths. Demand in the remaining booths goes up and supply does not. So the price, well, that goes up too. And people keep on buying. Because they have to. It's called inelastic demand, by the way.
Speaker 1:
[26:10] So what do you say in here, Vroom Vroom? As long as countries fight each other, we're just doomed to constantly watch the price of gas rise and fall until the end of time?
Speaker 6:
[26:20] Well, maybe. Keep watching our global market. But luckily, fossil fuels aren't the only type of energy out there.
Speaker 1:
[26:28] Wind power, wind power, get your wind power.
Speaker 3:
[26:31] Excuse me, do you have a moment to talk about solar energy and how it can reduce your reliance on oil and non-renewable energy sources? It's a great investment.
Speaker 6:
[26:39] When the price of oil starts to go up, that gets people thinking about what they could use instead of oil to replace it. Maybe there's a less expensive option that's better for the environment. That's when someone might be interested in getting solar panels for their home or...
Speaker 2:
[26:55] Or buy an electric-powered vehicle.
Speaker 6:
[26:58] Well, if you're into that sort of thing. But that's probably not a lot of people, actually.
Speaker 2:
[27:03] So why did you make us come all the way out to Dubai? Why not just tell us after we filled up at the gas station on the way to the office?
Speaker 6:
[27:10] I wanted you to see how things happen far away can affect us at home. It's about appreciating the journey to gain knowledge. And spend time with friends like you. You're my friends, Ryan and Bridget.
Speaker 1:
[27:23] If you're our friend, then take us back to our office room. They've been expecting us there for like 48 hours.
Speaker 2:
[27:28] Yeah, we want to go back to the Million Bazillion offices. No tricks.
Speaker 11:
[27:32] Aw, shucks.
Speaker 6:
[27:33] Okay, fine, you're the boss. Or am I the boss? But we're still friends, right? Like best friends?
Speaker 2:
[27:48] Welcome back to the conclusion of Million Bazillion. We've been answering a question about gas prices and just got back from a whirlwind trip inside my conscious and talking car.
Speaker 1:
[27:59] Finally, we're back. I bet I've got like seven or eight slack messages I need to reply to with little eyeball emojis.
Speaker 2:
[28:06] I gotta let you know, I'm selling you, Vroom Vroom. That was not cool. You took us way out of our way. You're going on Craigslist tomorrow, and I hope you get bought by a man who is stinky.
Speaker 6:
[28:17] Okay, I see you're upset. Let's discuss this calmly after you wrap up the episode.
Speaker 1:
[28:23] All right, Ryan, what do we learn after all of this?
Speaker 2:
[28:26] Whether or not we realize it, our world is deeply connected and complicated, and so too is our system for delivering a gallon of gas to your local gas station, or snack station, as it were. A barrel of oil could crisscross the globe before it makes it to your gas tank. In this world, we're pretty much using all the oil we can, and that means our international system of drills and refineries doesn't leave a lot of room for the unexpected. So if anything changes, wars or conflict, an accident or extreme weather, that's probably gonna cause the price of a gallon of gas to go up.
Speaker 1:
[29:02] And we're often stuck paying those higher prices and looking for other ways to save. When prices get too high for too long, that's when innovators start to look around for other options, and if we're lucky, and we also work hard at it, the future could include less gas and oil, and more renewable and environmentally friendly energy options. Because here's the thing, however much we're paying for a gallon of gas today, that price does not include the true cost of what using fossil fuels does to our environment and our own personal health, and what future generations will have to pay to help fix that.
Speaker 2:
[29:36] All right vroom vroom, you're actually parked illegally right now, so I'm gonna drive you over to my parking space, and then I'm posting a Craigslist ad to sell you immediately and buy an electric car. Wait, wait, open the door, open the door!
Speaker 6:
[29:50] Oh, I'm so sorry, I can't.
Speaker 5:
[29:53] Vroom vroom, open the door, let Ryan out.
Speaker 2:
[29:56] No, no, where are you taking me?
Speaker 6:
[29:58] We're gonna drive around until you realize that you and I can't be parted. I love you, you're the only owner for me.
Speaker 2:
[30:04] Stop right now, Ryan, what did I do? Call the police, tell them I've been taken away in a car, or buy a car, rather, and vroom vroom, if I'm gonna be trapped in here, can you play the rest of my Pixar podcast?
Speaker 6:
[30:18] Now that I can do. Resuming podcast now.
Speaker 3:
[30:22] Coco, or like Kaka, I'll take cars any day.
Speaker 4:
[30:26] Talking cars, that would never happen in real life.
Speaker 1:
[30:39] That's it for this episode of Million Bazillion. If you still have questions about gas prices, or if you want some ideas for starting conversations about them with your loved ones, check out the tip sheet for this episode, because yeah, there is still a lot more to say. Sign up for that tip sheet newsletter at our website, marketplace.org/million.
Speaker 2:
[30:58] We'll be back next week to answer your questions about game show prize money, so get excited for that.
Speaker 1:
[31:04] Ooh, yeah, and if you have new questions or ideas for an episode, you can send them to us at our website, marketplace.org/million.
Speaker 2:
[31:13] Million Bazillion is produced by Marketplace from American Public Media. I, Ryan Perez, wrote and hosted this episode along with Bridget Bodnar. We had help from the experts for this episode, including Morgan Bazillion, professor of public policy at the Colorado School of Mines and former lead energy specialist at the World Bank.
Speaker 1:
[31:31] Our senior producer is Marissa Cabrera. Our editor is Jasmine Romero. Our intern is Ian Chan.
Speaker 2:
[31:37] This episode had additional voicing from Kimberly Adams, Aziza Wad, Marissa Cabrera, Ian Chan, Brendan Dalton, Peter Eklund, Jasmine Romero, and Tony Wagner.
Speaker 1:
[31:48] This episode was sound designed by Brendan Dalton and mixed by Charlton Thorpe. Our theme music was created by Wonder Lee.
Speaker 2:
[31:55] Bridget Bodnar is the director of podcasts at Marketplace. Joanne Griffith is the chief content officer. Neal Scarborough is the VP and general manager.
Speaker 1:
[32:04] Million Bazillion is funded in part by the Sy Syms Foundation, partnering with organizations and people working for a better and more just future since 1985. Special thanks to The Ranzetta Family Charitable Fund and Next Gen Personal Finance for providing the start of funding for this podcast and continuing to support Marketplace in our work to make younger audiences smarter about the economy.
Speaker 2:
[32:26] Like we said up top, Million Bazillion is part of Marketplace on public radio. If Million Bazillion is helping your family have important conversations about money, consider making a one-time donation today at marketplace.org/givemillion. And thanks for your support.