Seriously: Why are gas prices so high?

Question

Does anyone know the politics (if applicable) behind all of this? Or the reasoning? I hear gas is projected to be $5/gal by August. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!... I just don't understand. What do you think our economy is going to do to survive this? Are you worried?

Answer 1

they think we c**p money

Answer 2

My teacher told me this 2 weeks ago and shes like, a wiz at everything -.-. Anyways, she told me that gas prices are getting higher for us because we got a, high discount. Other places are way high. For example, Neitherland US is $10 for gas already! So now we have to return the favor and pay up.

Answer 3

The dollar has lost a lot or value so we need more money to buy the same amount of oil . The economy is tanking the bankers and gov know it . If one is prepared mentally an physically you should be ok .

Answer 4

There are different reasons for why gas prices are high:

- Oil supply is low

- China has high demand for oil and its growing

- India also has significant demand for oil and its increasing along with CHina's demand.

- The US war in Iraq and tensions with Iran have increased unease and tensions in the Middle East.  That causes gas prices to go up.  Oil gets pumped at a decreased rate.  In addition, I think spectulators become uneasy about this, so that causes gas prices to go up too (not too sure on that point tho)

- Dollar has lost value.  Thanks to high debt, more dollars are printed.  Therefore things become more expensive (more dollars means decreased value).  So gas becomes more expensive.

- I heard that tensions in Nigeria (where some oil companies are) have contributed to the high gas prices too.  Not too sure on that but I'll have to research it.

Its a problem.. and if we're going to survive this? Yes we will.  Things will be okay.  It may be a while, but it will be okay.  Why do I say this? Because at this rate, people will buy less gas and also because I think there's a possibility that more oil will be pumped (and gas prices go down) (along with other things that would make prices lessen).

I'm worried yes but I have faith.

We need to start using alternate energy.  There must be more investment in this.  Also, there needs to also be more cars with more MPG. that would help a bunch.

Answer 5

Just ride a bike and stop whining

Answer 6

Our consumption of gas has decreased between April and May by 1 percent.  Usually it increases by 2 to 3 percent.  A lot of this is tied up in the housing bubble.  The Fed has to offer money cheaply to encourage banks to lend out more money.  The low interest rates cause inflation.  Oil and most commodities are measured in US dollars...thus causing the hike in prices...The dollar will gain strength once the housing market corrects itself.

Edit:  With all that being said i think we're gonna be cutting down a ton on how much we drive.  But i don't think its gonna matter to much...India and China use more gas that the US at this point...so it's gonna matter on how they handle it too.  Yes i'm worried.

Answer 7

Despite record earnings, the OIL companies are still trying to justify the prices. I smell an ENRON scandal in the making.  No amount of imported oil will ever cause the U.S. to shut down. We have our own supplies, but insist on foreign oil. What do they plan to do, wait till foreign oil runs out and sell them some from our reserves for triple the price? Who knows. At least when George W is out of office and his dad's hand is no longer up his @ss controlling him, the truth will rise to the surface...and every pun is intended.

Answer 8

We like our gas and refuse to stop using so much of it to cause there to be a surplus which they would not be happy having.  And who knows the true machinations of the ones who make the moolah off of all this.  People are manipulated too easily, unfortunately.

I'm more worried about the lack of focus on energy sources that sustain both our needs and that of the planet that we are parked upon.