Thursday, March 21, 2013

Gas prices

http://abcnews.go.com/US/wireStory/drivers-face-high-gas-prices-us-oil-boom-18784605


Prices of products are usually dependant on supply and demand which everybody is familiar with but what if the supply is plentiful and the demand is down and the price still does not go down.  This is precisely the problem with today’s gas prices. At almost four dollars a gallon you would think there is a shortage around the world in crude oil but there isn't. Right now the US is producing more oil than it ever has and has picked up its production fourteen percent producing almost six and a half million more barrels than just a short time ago. Do the oil companies think the general public is ignorant to the raping of our wallets? Maybe it’s that they don’t care at all for US citizens and profits are all they care about.  Demand is at an all time low having been reduced by over eight million barrels. This has caused the automobile industry to come out with more fuel efficient cars as well as electric cars.

One of the arguments as to why the gas prices are continuing to rise is the demand for oil in other countries. As these countries grow so does their demand for oil and gas and as such the prices will continue to go up. The US now is exporting gas and diesel to these countries because they are the highest bidders for the product. To me, this seems wrong as the companies should remember its citizens here on the home front. Also, what about our financial standings and the little money people have to spend to boost the economy. Where and when is the government going to step in a take the public into consideration?

I personally think there needs to be high tariffs put on any products coming into the US as well as have very little go out to the rest of the world. We can sustain as a nation and prosper if we don’t allow outside influences to control us. This is how we started in the beginning and it worked so why have we gone away from a system that worked? Here is the answer; GREED!
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1 comment:

  1. UnknownMarch 21, 2013 at 8:51 PM


    Manuel, I have to disagree on your place of blame for our gas prices. It is not necessarily the oil companies that are raising the prices. Yes, we are producing more oil right now but did you ever look at what kind of oil we are pulling? The lightweight oil is less expensive to refine but it is scarce. The oil we are currently producing is very heavy crude oil which is much more difficult and costly to refine and turn into fuel.
    Have you looked at the places where you buy gas? The stations themselves add a little surcharge in there. The government also gets their piece of the pie in taxes as well as states that add on additional state taxes. Texas is actually one of the states with the lowest prices because the state itself does not tax fuel, however we are still paying the government tax.
    Discovery did a piece on how fuel prices are figured, http://auto.howstuffworks.com/fuel-efficiency/fuel-consumption/gas-price1.htm. You will actually be surprised to find it is not all about the oil companies or the import/export of oil.
    I do agree that prices suck and that something needs to be done, but the same thing has happened with milk and other products we regularly consume. I can remember when milk was 1.25 a gallon and now it ranges anywhere from between 5 to 8 dollars a gallon. Everything is inflated not just fuel. When does it end?

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