Gas Prices

Gas Prices

The rise and fall of oil and gas prices has caused quite a lot of issues both financially and economically over the past three or four years. Many factors have taken part in this issue starting with the issues of supply and demand down to the general value of the almighty American dollar. When the chemical components that make up the substance of gas switched from methyl tertiary-butyl to ethanol it made it harder for foreign countries to come up with resources need to make enough fuel for themselves. Things have become essentially worse when the American economy took a major downfall causes the value of our dollar to decrease in the foreign states who supply the oil for us. It is basic logic; when the demand for oil rose and the supply was low the cost went through the roof, but if the economy would begin to repair itself both in America and third world countries the costs would begin to go down.
One of the biggest issues leading to high gas prices can be summed up in three words “supply and demand”. Many people seem to think that the price per gallon at the gas stations here are outrageous, but if you took a trip overseas you would see that they are not any better. They are actually a lot higher and I mean almost reaching a peak of about twelve dollars a gallon. Just think of how much American dollars you would have to spend to get gas from another country. Due to a thirty percent loss of production caused by environmental issues in China which is one of our biggest suppliers of oil the price of a gallon of oil has risen drastically since 1996. Just to give you a vague idea of how much of a rise it caused the price of a barrel of oil in 96’ was roughly around sixteen dollars, but it reached over one hundred dollars by 2008. Now because the demand went up in China due to lack of supply caused by good old Mother Nature herself it cost America more money just to get the supplies we needed.   Although our suppliers are considered to be third world countries...