Why is gas so expensive in the U.S.A? is the war really the one causing all of this or just greedy companies?

Question

i dont see why the war is causing the gas prices to raise? or are the greedy companies just using it to make an excuse for more money?

Answer 1

A reason for the gas price rise? Try War.
Published by Steve Kretzmann April 29th, 2006 in Oil, Politics, War


The favorite topic du jour in DC these days is the price of gas - and this being DC - the blame game around it. The right talks about the lack of supply - and says the solution lies in relaxing green refinery rules and opening up ANWR. The left blames corporate profiteering and Bush administration opposition to demand reduction. Both sides talk about peak oil in hushed tones.

Nobody is talking about the war.
According to Daniel Yergin’s industry funded Cambridge Energy Research Associates there is a “slow motion supply shock” causing an “aggregate disruption” in the global oil market.
They break it down as:

Iraq – 900,000 bd below prewar levels
Nigeria – 530,000 bd shut-in by insurgents
Venezuela – 400,000 bd below pre-2002-2003 strike levels
U.S. Gulf of Mexico – 330,000 bd less than before Hurricanes Katrina and Rita.
Thats 41% due to Iraq, for those keeping score.



Analysts say oil prices are likely to climb even higher in the weeks ahead as worries grow about how international pressure on Iran, OPEC's No. 2 oil producer, will affect its crude-oil output. Another factor is disruption caused by rebels in Nigeria, the fifth-biggest source of U.S. oil imports.

UK and Australia have experienced high rise of gas prices too. It's more expensive in Australia, we are paying about USD$4 bucks per Gallon..... :-( It has always been more expensive here...

Answer 2

truth is... people will though might want to purchase the oil. component to the reason grew to change into the reality that having a delightful authorities for oil agencies to barter sensible contracts with.... that makes the income margin that a lot more advantageous. yet... The U.S. spent someplace on the brink of $3 trillion on the Iraq conflict. Iraq produces some component like $40 5 Billion in oil each and each 3 hundred and sixty 5 days.... so at contemporary prices it is going to take 70 years to make that money shrink decrease back..... if each and each penny grew to change into income. and nobody thinks there is 70 years of oil LEFT in Iraq. yet there is more advantageous to it than really the oil in Iraq. there is likewise something of the middle east.... and if the Iraqi's imagine of the U.S. is easily leaving.... they're delusional.

Answer 3

gas prices are high because the government taxes it soo much. Kerosene does not cost as much because it does not get taxed as much since it was reused,thats why constuction vehicles use it. Also, only 10% of the earth's gas was used up but the rest is in small quantities in various locations which makes it hard to reach.

Answer 4

If you look at how much money the oil companies have been making recently (300% to 500% profit), you can usually assume that the oil companies are at FAULT.

Answer 5

I think it's mostly the greedy companies because they can buy oil from many other places around the world.

Answer 6

just a thought. bush is an oil man so i don't think it is much of a stretch to assume he has the oil companies collecting war donations at the pump

Answer 7

Compared to most of the rest of the world, gas here is relatively inexpensive. We have just been spoiled

Answer 8

dude - our gas is still half the price of what it is in europe - we have way more resources than a lot of other countries - we just don't know how spoiled we are.

Answer 9

1. If you travel to Europe then you would be surprised to see that petroleum refined products costs about double than what you are paying in USA.

2. The war cost has to be borne by each and every segment of the society and business. Petroleum sector is no exception. Moreover, the supply of crude oil gets restricted with war and the prices soar up as a consequence.

3. Most of the Multinational Companies operate for profit. Sometimes they would incur loss and would compensate it when they find the proper time to do so. Now is the time to offset some of their losses by increasing the prices to balance their account. Call it 'greed' or business strategy, depending on which side of the fence you are sitting. Of course, some of them do unethical practices and Government authorities are to be blamed for not implementing the rules and laws in time.

The above are my personal view. Please find the following related articles:

FACTORS BEHIND THE INCREASE IN GASOLINE PRICES IN 2005

Since the beginning of 2005, U.S. retail gasoline prices have been generally increasing, with the average price of regular gasoline rising from $1.78 per gallon on January 3 to as high as $3.07 per gallon on September 5, as Hurricane Katrina further tightened gasoline supplies. But the hurricane is only one factor, albeit a dramatic one, which has caused gasoline prices to rise in 2005.

A major factor influencing gasoline prices in 2005 was the increase in crude oil prices. The price of West Texas Intermediate (WTI) crude oil, which started the year at about $42 per barrel, reached $70 per barrel in early September. Crude oil prices rose throughout 2004 and 2005, as global oil demand increased dramatically, stretching capacity along the entire oil market system, from crude oil production to transportation (tankers and pipelines) to refinery capacity, nearly to its limits. With minimal spare capacity in the face of the potential for significant supply disruptions from numerous sources, oil prices were high throughout 2005.

In addition, Hurricane Katrina had a devastating impact on U.S. gasoline markets, initially taking out more than 25 percent of U.S. crude oil production and 10-15 percent of U.S. refinery capacity. On top of that, major oil pipelines that feed the Midwest and the East Coast from the Gulf of Mexico area were shut down or forced to operate at reduced rates for a significant period. With such a large drop in supply, prices spiked dramatically. Because two pipelines that carry gasoline were down initially, some stations actually ran out of gasoline temporarily. However, once the pipelines were restored to full capacity and some of the refineries were restarted, retail prices began to fall. Increased gasoline imports in the fall of 2005, in part stemming from the International Energy Agency’s emergency release, also added downward pressure to gasoline prices. However, retail prices are likely to remain elevated as long as some refineries remain shut down and the U.S. gasoline market continues to stretch supplies to their limit.

Answer 10

I don't know. I heard the prices are even higher in other countries...if so, I guess we're pretty lucky.