Why are gas prices rising in the United States?
27 Jun
Americans are frustrated that gas prices are rising, despite the fact that other countries incur much higher fuel costs than we do (Europe for example is close to $10 per gallon). It seems like the gas stations themselves are doing what they can to screw the average joe over all for massive profits. The truth is that a lot of the gas price crisis is well out of our control, and can be contributed to factors that have little to do with America as a whole.
THE REASONS
Two of the primary reasons for the increase in gas prices are the decline of the value of the American dollar (which is largely attributed to the current state of our economy.) The secondary reason is the increase in demand of fuel in countries that have booming economies such as India. The combination of our currency decreasing and value and the increased demand for fuel and energy in other parts of the world have resulted in higher prices at our pump.
There is some worry that oil drilling has reached a peak in terms of maximum production. There are claims that the demand for oil continues to increase while the production of oil has reached a maximum, and even if there are increases in technology that it would be difficult to keep the supply of oil in line with the demand.
IS THIS A BAD THING?
Some have questioned if the higher gas prices are in fact a bad thing. Stating that the result of the higher gas prices has decreased the average amount of driving in the US, and that it is actually reducing our foreign dependency on oil. This sort of increase in energy will let us become accustom to alternate means of energy.
As oil prices rise; people, companies, and countries will adapt and shift their economic structure to accordingly. There are already lots of forms of alternative energy available that are waiting for the right moment to gain momentum. Some of them simply are more expensive than gas is currently, partially due to demand, and partially due to the lack of development due to no demand. With an increase in demand we are likely to see an influx of technology that makes these alternative forms of energy viable and practical. Potentially replacing gasoline at some point down the line.
