The People Want to Know Why Are Gas Prices So High

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It is said that in the United States that over 140 billion gallons of gasoline and diesel fuel are consumed each year. That is a lot of oil and reserves cannot keep up with this type of demand. That is only what the U.S. uses and if you figure in what other nations consume, the picture becomes even bleaker.

The Demand for Oil is Increasing

Supply and demand affects all areas of commerce and in the fuel industry this is true as well. More countries are becoming developed and the need for oil is rising everyday. China is fast catching up with the United States and is thought to be well on her way to surpassing it. It is thought by some economic experts that the United States along with other industrialized nations will need as much as 140 billion gallons of oil on a daily basis.

Supply Problems and Geopolitics

The main region where most nations get their supply of oil is the Middle East. This is a region that is known for its instability and often the flow of oil is interrupted because of warring factions. As we try to negotiate with Iran over their desire for nuclear weapons, they are holding their oil supply as hostage. The war in Iraq has further depleted the export of oil from the economy as has the rebel activity in Nigeria.

The refinement process of crude oil in the United States is also one of the reasons why gas prices are so high. The reasoning behind this shift in expense is because the congressional elements seek to create cleaner blends of fuels that target the safety of the environment. The last few years have seen some damaging hurricanes hit the Gulf Coast and this too adds to the reasons of why gas prices are so high.

The areas of drilling for crude oil in the United States have also seen a decrease in production and in some cases a complete drying up of the oil resource. Oil companies are having to find crude oil supplies in locations that are much harder to reach which in turn makes looking for oil supplies a more expensive venture.

There is not just a single reason of why gas prices are so high, there are many. That is why more money should be funneled into the research and development of alternative fuel sources. The people of the U.S. should hang up their big SUV keys and look to smaller, more fuel efficient cars that will save them money by having to put less fuel in their tanks.

There are many ways that an average family can save on gas and many of them are quite easily implemented. Doing your part to save the precious resource of crude oil should be on the top of everyone’s list no matter where in the world you live.

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