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Why Are Gasoline Prices Going Up?

Many people in many countries are feeling frustrated when pumping gas for their cars. Because in spite of the world crude oil price is at its low level, they still need to pay for high gas prices.

rising oil price
rising oil price

Except in cases where you are living in places like the Middle East or other oil rich countries, you are going to feel the pain when you are at the pump. The prices of gasoline always appear to be on the up-trend. Thus, most of us may have a question in our head: “Why are gas prices going up?”

Table of Contents

Demand and Supply

One of the main reasons that caused the increase of gas prices is the high demand and the low supply of gasoline. The OPEC that control the majority of oil supply didn’t increased their oil production very much since the early 80’s. If the OPEC keeps a low level of oil production which caused a low world supply of oil; while demand is keep increasing, then for sure the gas price will rise.

It is a big surprise that Iran, Venezuela, and Algeria don’t want to raise production. They hate the west and will do all they can to keep us under their thumbs. When was the last time you bought anything with the label, made in Iran, made in Venezuela, or made in Algeria. Dictators and oil are all they have. What I think is they may afraid that once they lost control, they will lose their ability to increase production in order to control prices. Now, the world oil market doesn’t have anyone at the wheel.

For me, I do not have a choice whether I drive or not, I commute in a rural area for 50 miles traveling distance with one way to work for 5 days a week. I have to say, the gouging is hurting my already strained budget. I scramble three days before each payday trying to put enough gas in the tank to get back and forth to work. This is ridiculous and it is contrived by the oil companies and the other greedy companies. There is enough oil available here in the US to tap into, and we should not be sending any of it overseas. Let them buy their own or drill for their own.

Politician To Be Blamed

In the real world, many governments have reduced their gas taxes, only to watch the oil companies keep the difference instead of lowering the price at the pump. Likewise, when those same tax breaks were repealed, the prices didn’t budge. Increasing the supply doesn’t seem to help either – we still have hundreds of wells in the lower 48 that were found to be oil-rich and then capped. Have you ever heard of DeBeers which is the diamond company? They also artificially restricted the supply on their commodity, causing the price to skyrocket. Look it up. Opening up more drilling sites won’t help, because:

1. They’d just cap those wells too.
2. Why would they *want* to increase the supply, and thus lower prices? What incentive do they have to do so? They’re making record profits quarter after quarter – what would they gain from lower prices? Why spend millions to drill only to make *less*? If we open up ANWR and all the rest, we’ll just get a “Thanks, but we’re good right now.”

For how many decades now have we been talking energy independence? But until now we are still relying heavily on Middle East oil. Is this because our politicians are incompetent and owned by special interests? You may argue there really isn’t any gas shortage. Thus, the oil companies basically run the USA, lock, stock and barrel and everyone is cries and whines including the government officials.

Iraq War

During the 2000 election and after, Bush intimated that taking down Saddam would lead to more oil imports and lower gas prices. Just the opposite occurred, of course. Considering that Bush/Cheney have extensive ties to the oil industry, it certainly appears that Bush’s plan was never to increase oil exports, but curtail them even further. Why is that with Iraq as virtual 51st state we haven’t been importing massive amounts of oil from them for the past three years? For Bush to chastise us for being addicted to oil is like Larry Flynt chastising us for being addicted to porn.

Commodities Speculators

Obviously some people are clueless and still think OPEC and Demand is responsible for the high price of oil. It has already been documented in several reports that if it were not for the Wall Street Oil Speculators, Oil would be remain at a low price.

Everyone already is strapped with the household budget, now the rising oil prices are increasing the cost of food too. Sad fact, there is no gas shortage, however they way Congress and Obama have been spending money as if it had an endless bank account. The Arab nations are raising the price per barrel to cash in on America’s dependency on foreign oil, The Wall Street speculators are cashing in on raising the price of gas at the pump. So what does Obama do, he gives Brazil millions to drill for oil, while here in the US, he bans oil drilling in key areas. We need to stop depending on our enemies for oil, and eventually use alternate energy to power our autos. We supply American dollars to all these Arab countries, so they can fund terrorism.

gas station
gas station

You will never going to meet an oil speculator who is not seem to be a crook and tell you there is no oil shortage what so ever.

What Can We Do?

Since oil and gas are the two major global investments in the space right now we need to be aware about its effects to our environment as well. However through video broadcasting and bringing greater exposure globally we will be informed how gas and oil are being processed and through a social media we can build a better understanding about how oil and gas works. A review in the portal of XchangeTube can help us understand the role of oil and gas in public companies.

The government should figure out how many of these countries that don’t want to raise oil production receive aid from the United States? For these countries, we should stop providing any aid anymore to them and may even implement certain sanction to their countries.

While for consumers, we should start get up our asses off the couch and started walking, biking, jogging and skateboarding our way to wherever by less dependence on transportation that can consume us gas! If you want to, try car-pooling and public transportation.

Since the US is the world’s largest exporter of food by far, perhaps we should inflate our prices on food exports to match. OPEC countries can’t feed their own people and import most of their food, and guess where it comes from.

If we can’t stop the gas price from rising in future, then I think every farmer in this country should be planting corn to be converted into Ethanol.

Warren Paine

Warren is the senior mortgage loan officer who has worked in mortgages and loan industry since 1995. He study in Harvard and major in Finance with a Bsc. Honor Degree. He possesses a Paralegal Certificate as well.

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