Are high gas prices really because of politics?

Question

And business? I'm asking because I thought gas was one of those natural resources that is limited, and would eventually run out? Isn't that why they're trying to make cars that run with electricity, or other materials and resources? I'm just asking because back in high school, I vaguely remember us discussing something of the sort. Anyway, I have no idea and am not attempting to start any controversy. I was just curious because it seems like everyone blames politics and businesses for gas prices, but could it possibly be true that the sources are running out? Please explain to me...lol because I have no idea about the story behind the gas. I just buy it, and never even really think to question why the prices were so high; just assumed that was due to the scarcity of the resource. Thanks in advance! :)

Answer 1

Mostly no. True, this country has done little in terms of forward-looking energy policy to smooth out the kinks and assure slower demand growth, but high gas prices are mainly the fault of the US consumer, not the government.

No one is forcing us to drive inefficient automobiles. Nobody makes us buy Tahoes and Suburbans and Expeditions. But, because so many do, demand and demand growth are really high here in the Us, and that pushes up the price, as it should!

In europe and in asia, people drive smaller, much more fuel efficient automobiles, and people tend to rely on mass transportation for daily commuting. So, the technology already exists for us to conserve fuel and ameloriate demand (and thus prices), but most consumers won't budge.

So, high gas prices are almost entirely the fault of the consumer (though the EPA mandated ethanol additive requirement is also adding conisderably to the cost of gasoline).

Yes, petroleum is a finite resource, but we have 40+ years of assured resources left, and once petroleum starts to get pretty scarce we can migrate to the Sasol process to get motor fuels from coal. However, it will only be cheap to drive a car for another 20 years, because even with concurrent coal-to-liquids plants, there is only so much supply available.

Our grandchildren are going to live in a dramatically different world where car trips are a relatively infrequent, expensive affair.

Answer 2

It is true that it is a limited resource. The prices for gas are set by the crude oil prices and the cost of refining it, which can be majically turned into any number they want by shifting money here and there, in a chaotic accounting nightmare so that no one has the time to figure it out.

There has been the ability to get 100mpg for over 30 years, but the patent was purchased and buried. Why? Oil profits.

Hemp was made illegal because of the invention of nylon rope, another oil product.

The first major abuse of human rights in the US after what we did to the natives was the building of the rail line accross the US and the use of the first browning machine gun to enforce thier will. Again, oil profits.

I guess I am just rambling but we need to move to alternative sources for the environment, and to decrease our dependance on the rest of the world for oil.

Kind of funny we are fighting a war in a oil field, isn't it?

Want to end the war?

Answer 3

Although the price of all fuels is primarily determined by supply and demand, there are many other factors.

When refineries switch from refining gas to refining fuel oil, the price of gas will go up. Also, based on the price per barrel of crude oil, the price of refined fuels can go up.

With a known gas usage, in order to keep prices up, refine less.

Also, plastic products are made by the same refineries.

I find it hard to believe that a family that has made fortunes based on oil profits, would really like the country to reduce oil usage.

If the government really wanted to reduce oil usage, all they would need to do is mandate it. The Auto manufacturers would have to make many times the quantity of hybrid and electric cars, thus reducing the amortized costs of the products.

Right now, not many people can afford these hybrid cars, because of costs. Bring down the costs, and people will buy them. Reducing the costs, however, will not happen until government gets involved.

Answer 4

You are right that it is a natural resource that is finite.

The demand will continue to increase with the eastern Asian countries' growth. As demand increases so will price.

The government can slightly control the prices by helping companies recoup some of the costs of extracting oil from difficult places such as deep sea rigs in the Gulf of Mexico, but even that will do little to change the price.

Answer 5

Yes its called about 60 Cents on the gallon taxes, no new drilling cause that would effect the environment just never you no mind that the price will go up due to a supply shortage. That is where demand is greater than supply The CA power spikes a few years ago proves economics works and the ceilings and floor (Price) do not work.

Also it is impossible to build new refineries as a result of Green laws and so we have a fixed ability to manufacture fuel into gas or carsine, So yeah its all political from the Left not allowing us to grow or energy production and the American people using more gas.

Answer 6

Oil isnt that scarce yet. the price of the oil itself looks to be the same or a little bit cheaper than it was last summer, yet gas prices are higher.

A big part of it is refining capacity. We do not have enough refineries to take oil and make it into gasoline to keep up with the demand.

Im sure htere is some gouging as well.

Answer 7

It's part politics, part big business. But mostly, it's due to the classic equation of 'supply and demand'.

We have shortened supply and high demand. But as for running out of oil? Maybe in the 2040s--if the the current trend continues.

Answer 8

I choose shall we by some ability restrict speculators in the commodity markets and shrink "speculating" to firms which will certainly purchase and use the oil. keep in mind in 2006 while oil spiked final time? via fact the commodity brokers crashed it became into printed that it became into them driving expenses to unreasonable tiers. they are doing it returned. this happens on the Chicago mercantile substitute. i anticipate comparable issues take place in ecu and Asia. we will not administration them yet we are in a position to administration ourselves and usa is the main important industry in the international, so we've some pull. To heck with politics, it is actual money. yet legislations ought to help even issues out fairly.

Answer 9

Yes, a lot of it is Politics.
Democrats want high gas prices to satisfy the greenies who donate millions to the Democrat Party.
The Democrats stopped the drilling at Anwr in Alaska, many places Off Shore, and on Oil Rich Government Land.
They wanted high gasoline prices, and they got them.
The Democrats win again & the Working People lose again.
It's all Supply & Demand, BUT the Democrats are interfering with the Supply.

Answer 10

that's right,,,,,,
If it wasn't for the war in Iraq oil prices would never go over $20 a barrel but Mr Bush wants that remember he runs few oil companies.......