Why are consumers paying $4.00 plus for a gallon of gas? & Why aren't we using our oil reserves?

Question

Why are consumers paying $4.00 plus for a gallon of gas? & Why aren't we using our oil reserves?

Answer 1

EASY EASY ANSWER:

We've given our lives to our politicians.  The politicians say you can't drill here, you can't drill there, we can't take the oil shale and convert it to gas, we can't have a oil refinery built anywhere.  

Will we make a difference come November and vote for $4.00 to $5.00 gas again.  We will if we continue to vote for people that keep saying they want to veto drilling.

Answer 2

money and war think about it if you could get more money for something why would you sell it for less.... and demand for gas well it didnt go up until we started fighting about ten years ago.. the best milatary mileage is about 8 miles per gallon many is lower like 3... so there is a demand for gas ... no shortage.... how many gas stations you see with signs saying sorry no gas

Answer 3

1) because poor countries are trying hard to become rich:

china and india want gas too, and when we go shopping at wal-mart or buy software, we give them dollars to buy it with.

2) because the US dollar has tanked in value:

if you start a trillion dollar war and cut taxes, no one will want your money.  the government has to print more to pay for it, making it worth less.  plus, you aren't making anything the world wants.

3) because people are allowed to gamble on prices:

just like craps, except probably less regulated.  if you think gas is going up higher, you can place a wager.  if you're right, you can put the difference in your tank.  right now, they're betting on war with iran.  if that happens, iran will respond by shutting off the strait of hormuz, through which 20-40% of the world's oil travels.

4) because there isn't enough competition in the oil industry:

the oil companies used to be one.  they were broken up.  now, they're closer to becoming one again.  with just a few suppliers, you can't shop around.

5) because we're addicted to it:

there's an economic term called 'demand elasticity'.  without elasticity, they can raise prices and you'll pay, because you're addicted.

re. your second question, the reserves are for supply emergencies, not inconvenient high prices.

Answer 4

It`s called the free market.If gas went up the same as the price of oil.you  would be paying over $8.00 a gallon.The free market is keeping the price down,they are only charging what they can get.The same reason why gas in Canada is over $5.00 a gallon and we are an oil exporter,but we pay more because  they can get away with it.

Answer 5

Oil reserves are for military use NOT stupid consumers.

You are paying $4/gallon because of the law of supply and demand.  You don't have to pay anything for gas - buy a bicycle and peddle.

Try learning about economics - both macro and micro theories.  It'll really help you understand the indirect relationships.

Answer 6

Why do you complain?

In Canada, we pay $1.31 per litre... which is $5 per gallon.  

And sometimes we pay more.

Quit your bitchin, I go there for gas.  It's cheaper!