Prior to 1978, the relative prices of gasoline, electricity and natural gas were not very expensive. However, things are dramatically different now. US consumers are still wondering what is going on and why things have changed from the good old days.

We're clinging to various notions when in fact the paradigm has changed. Here are eight myths that we think people need to get over before things will really change:

Myth #1 -The Government will solve the problem
This is sheer folly. In fact, prior government attempts to "solve the problem during the OPEC Oil Embargo backfired. We ended up with long lines, short supplies and higher prices.

In some quarters the federal and state governments are part of the problem. They are too married to the notion that supply options are preferrable to renewables and demand side programs.

So what can the government really do? They can provide incentives in the form of tax relief, higher rates of return, faster regulatory review, etc. Remember, most of the energy infrastructure in the US is owned by private companies.

The government can also provide incentives to us. Energy tax credits to install renewable energy for our homes, etc.

Myth #2-The Government sets prices for gasoline, electricty and natural gas
Far from it. Oil and natural gas prices at the well head are not regulated. Supply and demand determinea price. We are using more electricity and natural gas because our appliances use more and our houses are larger.

The cost of transporting oil and natural gas via large pipelines is regulated. However, that's a small percentage of the price.

For electricity, the federal government approves rates to transmit electricty over the high voltage electric grid. They also regulate wholesale sale of power between the various states.

State Public Utility Commissions regulate electric power power plant construction, generation and the price of power to you and me. Many long for the good old days, which we don't think were very good in terms of how power plants, especially how nuclear plants were operated.

Myth #3- We need a National Energy Strategy
We've been there and have done that. More important is
what gets done on the ground.

For example, at the national level we lean heavily toward encouraging energy supply and pay lip service to renewables. We encourage natural gas use because its clean and like the idea of upgrading the high voltage transmission system.

Yet, consumers and the States routinely fight every proposed natural gas pipeline, electric transmission, and liquefied natural gas terminal project proposed. Not in my backyard (NIMBY) rules. Wind, solar and ocean wave and tidal projects are not immune from NIMBY either. Somebody's ox is always threatened be it fisherman, birders, etc. They also take issue with federal energy laws.

Something has to give and it does. We end up with "BANANA" or Build absolutely nothing anywhere near anyone situations." In return, we just pay more money to import oil, natural gas and electricity and to leave those nasty environmental impacts somewhere else be it Canada, Mexico or the Middel East.

Myth #4- We'll tell the Oil Producers to stuff it
Very tempting. After all, we have more coal, natural gas, oil and of course nuclear power that we can use. We'll also build more wind, solar and tidal and wave energy plants. Problem solved, right?

Not likely. Go online or at any newspaper and you will find that every kind of energy infrastructure project is being fought and delayed. People or communities question the need for them or think they are not going to directly benefit. We are quick to litigate in the US. People just don't want these projects in their communities. Also wind and solar energy projects have difficulty connecting to the electric grid.

Myth # 5- Consumers have little or no control over prices
My all time favorite and one that I am passionate about. Energy prices are subject to supply and demand, but to have an effect, we have to stop whinning and take action. In other words send a message to energy producers and providers.

You do this by not buying a gas guzzler or Hummer (nothing against the company, but why do we need them in big cities?). We can also take part in Demand Side Management Programs to reduce electricity and natural gas prices and get paid to do it. Architects, builders and home remodellers can start incorporating renewable energy projects like solar and wind into projects.
There are many other options which I will tell you about in a future articles.

Myth# 6- Electricity is unreasonably priced
Prior to the OPEC Embargo, we used a lot of oil to produce power. When OPEC drove oil prices up we got away from it as a power fuel. Then we started little by little to use natural gas, which is a lot cleaner than coal.

Today natural gas is the benchmark fuel for producing electricity because it is a relatively clean fuel. We also use it both for heating our homes and cooking and industry uses it in commercial processes. Demand for natural gas has driven up the price for it and in turn electricity prices.

At this time, natural gas is not an international commodity like oil. I predict it will be and prices will increase even more. Countries like Japan and others in Europe like natural gas for the above reasons. Also India and China, the world's two fastest growing economies, are after that gas as well. The latter two have signed 30 year contracts with middle east countries to import natural gas. This is done by freezing the gas and transporting it in liquefied natural gas tankers.

Myth #7- We need more government research
Just the opposite is probably true. The federal government does play a role in energy research, but too many companies get focused on the next phase of the research and the product never gets commercialized.

Think about it. How long have we been discussing electric cars and fuel cells and other technologies. We're lucky that Henry Ford just took a chance with the Model T. If the government got involved, we would probably be riding horses and be concerned with the price of hay rather than energy.

Myth #8- The Government's Energy Statistics are reliable
I think things are much worse than the Energy Department is saying. Look at car companies like Tesla Motors, Toyota and Honda who are investing seriously in bringing getting hybrids and electric cars into the market. What do these companies know and do they really think that the price of oil is going down. I doubt it.

Also in Canada, companies are processing oil sands. It costs them about a $100 to produce a barrel of oil. That speaks volumes about where they think future prices of oil are headed.

Please share your comments and thoughts.