The Reason for High Gas and Fuel Prices
it is becoming a real social issue in the fact that everything is impacted. From the commuter who travels to and from work, commuters who take trains or buses, rig drivers carrying consumer goods, or airlines carrying cargo and passengers. Nothing more impacts our daily life and pocket books than fuel costs.
Many feel it is the oil companies greed that jack up prices. Maybe so, but that element is probably small. There is the issue of refinery capacities and that parts of the country require a more stringent type of gas similar to California. This takes it toll. On the west cost, it is a deal if you find gas at only $4 gallon because the norm is $4.20 and much higher. Even the national average is now $3.90. In Europe, it is $8 a gallon. That is comforting.
The real cause is global. Since 2000, the US consumed mainly 20 million barrels of oil daily. Basically, our use has flatlined. In that same period,the four biggest emerging third world nations (China, India, Brazil, Saudi Arabia) have gone from 10 million barrels daily to 18 million barrels daily. Projections show that by 2013, their need will more than the US by a little and by 2015, they will need 23 million barrels daily.
Last month, all of the US refineries refined 9 million barrels a day and the price of one barrel of oil is now $113.00 and rising because of the competition from the four countries. China is the main culprit and are basically forcing many into smaller cars or hybrids to reduce fuel costs. The other issues that occur in the Middle East, like war and terror attacks only compund to the problem but are not the main reason for high fuel prices.
Get use to it, it is only going to up, up and away.