Why is gas $3.49 a gallon? What is going on?

Question

Its like Im work so I can make money to drive to and from work. It is really making me made, I cant afford to keep doing this. I want a motorcycle

Answer 1

To properly answer this question, a long list of causes must be viewed. It is impossible to single out one cause as "the" cause or even to precisely tell which are the biggest causes. Here are two possible reasons, each with several causes:
1. There is not enough oil. When too little supply is chasing too much demand, the price gets bid up. Why is there not enough oil?
a. Suppliers are holding back oil. From my direct experience with oil companies, I do not believe they are doing this. Some oil producing countries probably are though.
b. Refinery shortage. Because most Americans do not want refineries in their back yards or in currently pristine environments, oil companies cannot build new refineries or expand existing ones. Currently, this is probably a big factor.
c. Shortage of productive oil wells. Domestically, oil companies are very limited in where they can drill. The best new areas with oil potential are forbidden (off-shore in the Atlantic and Pacific as well as new Alaska areas).
d. No alternative energy methods are yet practical enough to materially reduce our fossil fuel consumption. Wind, solar, hydrogen, fuel cells, geothermal, and others all have their places, but none come close to making a dent in fossil fuel on a wordwide basis, especially when cost/benefit is considered. It will still take many years to fully develop these sources. Nuclear power could help a lot, but we are too affraid to use it.
2. There is too much demand for oil. It's our fault. Yes, our permissive "somebody else is to blame" world needs to face the facts. The main culprets are EVERYBODY such as:
a. Third World Countries are becoming at least Second World. Countries like China and India, particularly, are getting an amazing number of cars and trucks as they move up the ladder of economic prosperity. Their increased consumption has only just begun, but it is putting huge pressure on oil supply.
b. The First World keeps using more and more, especially the USA. We are the worlds energy hogs, and we are not about to make sacrifices until we are forced to. We consume twice as much energy per capita as the next highest group, Europe.

As far as I can see, these factors are all at work right now to some degree. There are other factors, but none are as impactful as these.

Answer 2

A large part of the price of gas is taxes. Someone just wrote a $100B check this week for the Iraq war -- that is $333 for each of us. Are we paying for this with gas prices? I don't think this is all unrelated.

Plus this is simple supply and demand. I've been to India and China -- today they don't just drive bicycles anymore -- they are competing for the same oil.

Answer 3

Partly because of what's going on in the middle east and partly because oil companies realize we will pay for it and so they gouge us and partly because it's getting to be summertime and a lot more people are traveling and going on vacations so this is the time to raise prices and make a profit, if you pay attention, gas prices always go way up in the summer time.

Answer 4

The government does not want to tic off the oil money. The oil people are greedy

Answer 5

We must do our part by cutting our consumption in order to bring down the prices, car pooling.walking,combing all of our trips into one, driving a more gas efficient car.

Answer 6

we pay it why not raise it. Americam citizens ***** and complain but we refuse to fight it. I am guilty i could buy a gas economy or hybrid car but i like loud and fast.. big business's like oil companies keep it high to make themselves rich....including our president.

Answer 7

The real reason is GREED on the part of the oil companys.Plain and simple.

Answer 8

i have know idea i think the oil companies have relized that the we are going to pay the prices so they keep jacking it up!!!!