If gas costs are so high because the American dollar is worth nothing why is nobody talking about that??

Question

or even trying to fix that problem. Is this not the main reason that gas cost so much???

Answer 1

No, its not entirely the fault of the weak dollar.  Improving the dollar would definately help the problem, but its not the main cause.  Gas prices are up everywhere.

European gas prices are so high because they import ALL of their oil, and they have a big tax that goes to development of alternative enrgy.

Demand has increased cost of Gas especially, this is the main cause. As more countries develop further, more oil is needed. Oil is a finite resource, and OPEC have colluded together so they do not have to compete, this means that the rate only goes up.  The cost of crude oil has nearly quadrupled the past couple years, of course the gas price will go up.  This is the main reason.

Of course, Big Oil has used this oppurtunity here in the states to capitalize and record record profits.  

Neither the gas tax holiday nore drilling here (ANWR) are the solutions we need.  ANWR would take at least 15-20 years before we get a drop out of it, and then another 10 to get it perfroming optimally- where it would make an extremely minimal impact on gas prices- i've seen estimates putting it reducing cost 4-6 cents per gallon(20 years from now)

Also, building refineries isn't the answer either.  Refineries aren't profitable and no oil companies want to build them anyway.  Besides, if we did build more refineries that would only mean we are buying more oil to refine and thus increasing demand and price.  

We have to move on from Oil, its a finite resource anyway!  We'll have to eventually- why wait until crisis time!?  The solution is not Oil.  The solution is alternative energy.  Hybrid cars, biofuel, ethanol, solar enrgy and beyond.  We need to keep researching and developing these things because only good can come of them when we get there!

You can check these facts.  http://www.factcheck.org

Answer 2

It's interesting, I will be writing about this very subject soon in my blog.  It's an essay entitled "Pain at the Pump".  

In theory the market will ultimately correct itself in accordance with the laws of supply and demand.  The immediate problem for us is current laws banning oil drilling in our oil reserves and offshore.  Government acquiesence to the environmental movement has directly resulted in our pain at the pump.  Sure, we all want to have pretty parks and pristine oceans, lakes and rivers.  Sure we would like to preserve some of our natural heritage within the United States but we can't have our cake and eat it too.

With the industrialization of the third world, as well as China and India (who currently hold half of the world's population in those two countries alone), American's have to become either: 1). Self sufficient, meaning drilling and sacrificing the natural preserves and oceans to gain access to oil to increase our supply 2).  Find alternative fuels which will help to drive (note the pun) our economy.

Our economy is so dependent on foreign oil (primarily from the Middle East) that they are able to set market values.  I predict however, that they will feel pain in their pocket books in the near future, as governments, and industries begin to adjust to meet the current crisis we are currently in regarding the import/export of crude oil.

Answer 3

The dollar does play a part, but not a large part.

17 months ago, oil only cost $46.00 a berrel.

Today it is $138.00

The dollar hasn't dropped 187% in the last 17 months.

The largest reason, is increased worldwide oil demand and speculators.

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China isn't even the largest foreign holder of US debt.

The amount of debt that China holds today, vs in 2001.

Is only 150 billion dollars.

China held 250 billion in US debt in 2001 when Bush was elected.

Today China holds 400 billion in US debt.

Answer 4

Yes the weak american dollar is the main cause of high oil prices---also the cause of all inflation----on all sales including food and every other purchase----if this were not the case than why is other items costing more? Just today's report on inflation shows that went it up in May at the rate of aboutt 12% a year. Inflation is cause by too many paper dollars(fiat money) chasing too few products.----Since OPEC has a monoply on oil in the world and controls its price, do you think they are going to accept something in payment that is declining in its exchange value? ---result is they raise the price of oil,which leads to higher gas prices. It is being talked about but nobody listens---they would rather find some other boogy man.

Answer 5

There's too much partisan conflict going on for it to be addressed.  Some of it can't be taken care of by the government- b/c OPEC controls our oil.  But a lot of it can.  We have to work on reducing our national debt (b/c deficit spending leads towards weakening economy and dollar weakening).  We also can be less aggrressive in the middle east, if we do we can reduce tensions in the Middle East and gas prices can fall from that.  

And we have to STOP looking towards quick fixes.  Those rebate checks that were sent out were 'quick fixes'.  They didn't help much, at all.  McCain's "gas tax holiday" is also something that wouldnt work and is just a temp solution.

We need to get to the bottom of this. And we must invest in alt. energy...our nation depends too much on gas/oil. Hope economy gets better.

Answer 6

there hasn't been a new oil refinery in the US since the 70's.  so oil production in this country is about 40 years behind.  demand for gasoline has increased, yet our capacity to refine is stagnant.  we can't build any new refineries because of all the bleeding heart liberals and environmentalists.  this is just one of the causes of high gas prices, but i think its the biggest piece of the pie.

Answer 7

Yes, that is part of the problem.  The easier solution is to drill for our own oil here in the U.S.  Thanks to the demorats we can't.  Every time you fill up at the gas station think of Nancy Pelosi laughing at you.

Answer 8

A great many people are in fact talking about that.

Answer 9

No, that is not why gas prices are so high. If that were the case prices wouldn't have gone up JUST AS MUCH everywhere else. We are still relatively spoiled when it comes to fuel costs compared to many other countries. Increased energy costs are not isolated to the U.S.

Answer 10

Gas costs are high b/c the Chinese are buying more gasoline. The demand increased so the price went up.

Answer 11

production of oil has fallen flat since 4 years ago while world demand has gone up, the dollar is just a small part of cost.