Rising Gas Prices In The United States

1125 words - 5 pages

Once upon a time Americans hopped into their cars on warm spring days and took long drives to admire the beauty of nature. Teenagers took joy rides around town to meet friends and rode from one “hot spot” to another. Those were the days when gas prices were affordable to the average American. Over the past few years, gas prices in the United States have been on the rise. What is causing the increase in gas prices?
To understand the increase in gas prices, one must first identify the distribution of dollars paid per gallon at the pump. According to the U.S. Energy Information Administration (eia) in 2010, the annual average paid at the pump consisted of 68% crude oil, 7% refining, 10% distribution and marketing, and 15% taxes (see Fig.1). This shows an increase of crude oil over the 2000-2009 average of 51%. (e. I. Administration)
Currently, the most important factor in the rise of gas prices is the increasing cost of crude oil. Unfortunately, the United States has three percent of the world’s oil reserves. (Horsley) In 2009, the United States was third in crude oil production as well as the world’s largest petroleum consumer. (e. I. Administration) Such consumption required and still requires the United States to import petroleum/crude oil from other countries.
Mainly, the United States imports petroleum products and crude oil from Canada 23.3%, Venezuela 10.7%, Saudi Arabia 10.4%, Mexico 9.2%, and Nigeria 8.3%. (e. I. Administration) In addition, approximately 77 other countries import to the United States. (e. I. Administration)
Worldwide, there are many factors contributing to the increase in cost per barrel. Most recently, Libyan rebels, inspired by the success of their Tunisian and Egyptian neighbors, are uprising against their leader, Moammar Gadhafi. Gadhafi became the leader of Libya in 1969. The rebels want to finally be free of Gadhafi and have been protesting against his regime. In response to the rebellion, Gadhafi has amassed a military force that includes regime supporters and hired mercenaries to fight against the rebels.
This has caused an upheaval all throughout Libya’s oil industry causing turmoil within the National Oil Corporation (NOC). “Along with smaller subsidiary companies, the NOC accounts for around 50 percent of the country's oil output.” (Reuters) In addition, major foreign international oil companies operating in Libya have evacuated employees. These companies include Eni, StatoilHydro, Occidental Petroleum, OMV, ConocoPhillips, Hess Corp, Marathon, Shell, BP, ExxonMobil, and Wintershall, a subsidiary of chemical company BASF. (Reuters)
Meanwhile the North Atlantic Treaty Organization (NATO) has decided to enforce the no-fly zone over Libya and protect citizens. As the United States, United Kingdom, and France prepared for action against Libya under the U. N. resolution, the cost of crude oil per barrel rose to $103.66. (Press)
The United States launched cruise missiles against Gadhafi’s...

Find Another Essay On Rising Gas Prices in the United States

A Social Ecological Approach to Rising Levels of Overweight and Obesity in Children and Adolescents in the United States

1945 words - 8 pages epidemic currently facing the United States. A number of interrelated genetic, behavioral, and environmental risk factors contribute to childhood overweight and obesity. Research has shown an ethnic and racial disparity in the frequency of childhood overweight and obesity. Specifically, minority children face a disproportionately higher chance of obesity; Taveras, Gillman, Kleinman, Rich-Edwards, and Rifas-Shiman agree: “…many risk factors for

The Effects of High Gas Prices

655 words - 3 pages our economy, people should understand that the high gas price does not only mean people need to pay more for driving their cars, but it also leads the pervasive inflation, the change of people's consumption habits, and more seriously, the recession of the global economy.First of all, the rising prices of gas, a critical input in almost all production processes, will trigger the price hikes of most consumer and industry products: the inflation

The Price of Gas - It’s Rising

1513 words - 6 pages The American economy has suffered many financial blows in the recent years, but none have such a drastic and heavy effect on the average American than the rising gas prices. A solution to the Gas Crisis, a new and formidable crisis involving the high cost for gasoline powered transportation, must have widespread results across American commuters to either increase the efficiency of drivers, drastically lower gas prices, or provide alternate

Government Intervention in Gas Prices: Good or Bad? (REPORT)

1712 words - 7 pages the past because of an inevitable supply problem; with a higher cost of gas in place, people will only buy what they need. If the government sets price controls and keeps fuel prices low, people would buy in excess, resulting in a good chance that pumps would soon begin to run dry.Alternative PositionGovernment intervention is necessary to regulate the industry and keep the economy healthy.Lower prices for ConsumersToday's rising fuel costs have

The Unstable Change of Gas Prices Across the World

2072 words - 8 pages impossible. OPEC has attempted to raise prices several times by cutting production. According to economic theory, a decrease in supply will yield higher prices. These are some of the reasons the United States must offer stability and continue to have troops in the area. They must intervene when the world's oil and its prices are in jeopardy. Currently crude oil prices are rising due to the bombings in Saudi Arabia. "It has continued to

The United States in Decline

2366 words - 9 pages One of the most vigorous debates focuses on the current status of the United States hegemony and whether or not it is in decline. This begs the question, if the United States is indeed declining in status, will it still be an influential player or not? I argue that the United States is losing its prominent position as the hegemonic leader of the world, but will still remain an influential player in global politics in the following decades to

Divorce in the United States

1250 words - 5 pages only 6 weeks -- and file for divorce on grounds ofmental cruelty.Popular attitudes toward divorce changed as the United Statesbecame more urbanized and less religious. The increasingacceptance of divorce was reflected in court interpretations ofexisting laws and in new legislation enacted by the states. Twotendencies merged, making possible the establishment of new andeasier grounds for divorce. The focus of state divorce, whichpreviously concerned

Homelessness in the United States

1474 words - 6 pages inconsistent. Throughout the world, there are different methods of measuring the poverty level, and different organizations control these evaluations. The World Bank defines poverty as living on less than $1.25 per day (at 2005 prices, adjusted to account for the differences in purchasing power across countries). According to this measure, there is no poverty in the United States, Canada, Australia, New Zealand, and the countries of Western


2115 words - 8 pages Immigration has been a very serious problem within the United States for many years. I personally feel that it is hurting our economy because of the drain of open jobs available to our own citizens. Immigration is a very controversial issue not only at home, but also amongst the entire world today. The majority of this "movement" is taking place within the U.S. It has caused a dramatic increase in population. Because of the increase, crime rates

Segregation in the United States

2491 words - 10 pages , another part can be attributed to changes in racial attitudes. Both are cause and consequence to the big decline on segregation in the last decades in most cities of the United States, which does not mean is the end of racial inequality, this is a more complex issue (Glaeser and Vigdor 2012) which may need and additional essay. Another downside for everyone, on this advance on integration, is the recent collapse in house pricing and rising defaults

Energy in the United States

1061 words - 5 pages electrons. One major source of energy in the United States that is already utilized in some areas is wind. In 2004, wind power produced about 1.5% (4,258 million kilowatt hours) of California’s electricity. Wind farms are often placed in areas with high amounts of wind, usually in a barren, empty space where the wind turbines won’t get in the way. The way the wind turbine works is when the wind blows, the blades on the wind mill (or turbine) are

Similar Essays

Todays Rising Gas Prices Essay

931 words - 4 pages Today's Rising Gas Prices At some point in everyone’s lives, we are affected by the rising gas prices in today’s economy. Natural gas is not a renewable resource, since there is a fixed amount of it trapped in the Earth. However, many people carry the misconception that there is a very limited amount of natural gas, and that we may use all of it up. This isn’t true. The gas shortages of the 1970's were prompted by the government’s lack of

Rising Gas Prices Essay

597 words - 2 pages With gas prices pushing $4.50 for a gallon of regular gas in some places, many people are looking for the cheapest gas they can find. If you see a sign that says $3.90 and the station next door says $4.00 you'll probably think, cool, cheap gas. Then you'll go swipe your credit card and think you just got a good deal; at least until your receipt comes. The price of a single gallon can be up to 50 cents higher. But if you knew this happened, you

Why Gas Prices Are Rising Essay

1210 words - 5 pages Gas prices rising OR EVEN ABOUT SQUEEZING a few more miles out of each precious tankful. But among the special-edition Ferraris, bizarre Cadillac studies and a whole new crop of gas-guzzling SUVs, not all that many people were talking about cheaper and cleaner ways of getting around. The section of the show dedicated to ‘New Energies’ was a tiny corner on the second floor of Hall 2, behind the stands of the insurance companies. There were

The Rising Of Hiv/Aids In The United States Population

1234 words - 5 pages blood transfusions. Twenty-two years later, this disease has taken the world by storm. HIV/AIDS is steadily rising in the United States population because people are having unprotected sex, sharing needles, and are not getting tested. AIDS, which stands for Acquired Immune Deficiency Syndrome, is the final stage of HIV or Human Immunodeficiency Virus. In HIV the virus attacks CD4 positive T cells (“HIV Infection”). These T cells are very important