it doesn't make sense that gas is at the most expensive point ever in the usa?

Question

1.) no hurricanes
2.) not summer
so why is it so high? and when a hurricane does flood new orleans this year how high will THAT gallon go up? combine a hurricane, with summer, with terroists hitting the oil reserve in saudi arabia, and you got ten dollar gallon gas..........
but none of that has happened!!!!! (yet) so why is it so high?

and to the car techies out there, why do we need gas in the first place? why won't any other liquid work. in fact, what does gas DO once you start your car?

Answer 1

1) The national reserves are stil recovering from Katrina. We depleted them to make ends meet and have been importing more than ever to cover the demand. As long as we continue to import, we're subject to gloabl demand.

2) Spring is typically the most expensive time of the year. Refineries shut down for annual maintenance and this puts a strain on the system.

A gulf hurricane won't likely cause the damage it did during Katrina. The oil companies learned a lot about level 4 hurricanes and made repairs to prevent future damage.

Until demand comes in line with supply, we will continue to pay more. Over the past 5 years, gas has risen, on average, 13% a year. From 1979 to 2001, prices rose an average of 2% a year.

India and China are building their economies and they're using petroleum to do it. We compete with them for every gallon we buy on the world market.

Tech question: Gasoline gets mixed with air at a precise ratio (stoichiometrics) in your cylinder. It's then compressed and ignited with a spark. The energy created during that explosion forces the piston down, creating rotational energy in the crankshaft, which turns the transmission.

Gasoline engines today are designed to exacting standards. You can't just run any flammable liquid in there. You can burn up the emissions equipment or the engine itself. You can run ethanol mixed with gasoline up to about 15%, but beyond that, you need to modify the engine. There's also the issue of cost. Most flammable liquids are more expensive than gasoline, due to the massive volume of gasoline produced.

Diesel engines are less fussy when it comes to fuels, that's why you can burn vegetable oil in them with cheap modifications.

Answer 2

Great Question! I live in So. Calif and at Costco I pay $3.30 a gallon this week.

My friends and I have a guessing game each year as to what new excuse the gas companies will cook up so they can gouge us. Then they have RECORD PROFITS and say, oh, well, we used a tax ...whatever... to adjust the income and outgo, ... i mean these people are shameless.

Oil is at an all time low for the past 10 years and gas is at an all time high. Part of the problem being that British Petroleum owns almost everything, and they think that because Europeans pay $4-5.00 a gallon we should have to also. What a joke. This year it is that the refineries are getting old. Well, duhhh.... have they not heard of annual maintenance. Some of their refineries are only 10 years old. Also, they intentionally have fires at refineries and then don't rebuild them.

last year the excuse was the"summer formula" for gas. Which is odd. In California the formula is the same all year since the weather is as warm in December as it is in May or June.

Greed. Is all it is. And our elected officials don't have the cajones to do anything to these greedy gouge mongers.

Answer 3

Part of the problem with fuel prices is that oil is at $64/bbl.
Another issue is that states are increasing their tax on fuel. Note: The federal government has not increased fuel taxes. One big contributor to the change in fuel price is May 15 is when the fuel companies switch to their summer blend across America and Canada. Their production numbers for this came from last years sales, and with the record number of consumption, they have to produce more than what they had planned to make.

And as a side note: California does switch between winter and summer blends. It is an EPA act as well as part of the California emmission standards. And, if California didn't change to a different blend, in the off season from the rest of the country, fuel would cost about $7.50/gal because it would be counted as a special production.

Answer 4

In the next few years electric and hydrogen cars will be hitting the market and striking a hard blow to the gas companys. They are trying to make as much as they can before it happens.

"and to the car techies out there, why do we need gas in the first place? why won't any other liquid work. in fact, what does gas DO once you start your car?"

Gas is shoved into the cilyders with oxygen and a spark is made. It then blows up forcing the cilynders out which turns the shaft.

Answer 5

I dont purely take apersistent... i myself dont desire too... I artwork approximately 40 5 minutes faraway from my living house so as thatpersistent is what i take advantage of to sparkling my head... each and every so often i wish thepersistent replaced into longer because of the fact i'm in a position to think of and purely be on my own and choose what i desire....

Answer 6

Homes are too, but you hear very few people bitching about it. specially if they are the ones who sold one and made a profit. If you don't like gas prices, get a better job or get a more efficient car. Or buy an oil company.

Answer 7

I absolutely agree. This is rediculous. It's a money thing. They used those hurricanes as excuses. Now they don't have one, and we (the dumb citizens) are not asking any questions, no strikes, NOTHING.

Answer 8

You are right. When you have an oilman in office, this is what can happen. Notice they haven`t said a word about these high prices, huh?

Answer 9

Three refinery fires!
Iran making threats!
Increased demand!

Answer 10

its called a monoploy, they all get together and set prices high