You may find it a guilty pleasure to get a sneaky grin in your face whenever you read the news and find that gas prices in some parts of America are higher than what they are in your area. However, if you realized that gas in some parts of South America is much cheaper than what it costs in America, you won't be celebrating anymore.
Less than a quarter per gallon in Venezuela - you can't get much cheaper than that. At this point, you'd be grateful to fill up your tank and get change back from a hundred dollar bill! And when the time comes to ask why gas prices are so high, most of the world's government blame worldwide crude oil costs.
That would be referring to the price per barrel controlled by the OPEC. As with any monopoly, when you control most of the supply, you get to control the prices. One of the strategies the OPEC uses to further increase prices is setting "output restrictions", where they decide to produce less oil to make it appear like they need to increase the price per barrel.
It's almost like deciding how much you get paid, then demanding that your boss sign the check. The situation in the United States is slightly different, as environmental concerns come into play. Oil companies blame the EPA Tier 2 regulations on low sulfur fuels as a factor in price increases.
These new regulations, however, are designed to improve the state of our environment. As a result, it becomes a tug-o-war between breathing fresh air and driving a vehicle. Do we care more about breathing or driving? Another factor that has hindered oil production are recent natural disasters, such as Hurricane Katrina and other powerful storms that have hit America. Regardless of the environmental impact, the refining capacity is lower.
No matter where you live in the world, gas demand is rising. And we're not just talking about the USA. The rate of gas consumption has rapidly gone up in India and China. These new gas users compete for OPEC's "black gold" which makes the market more challenging for buyers and more lucrative for suppliers.
The OPEC doesn't control certain oil-producing countries, but that doesn't exempt them from certain issues. Political instability in Venezuela and Nigeria can interrupt oil production and exports without warning.
Gas prices can go up or down (mostly up) because of the basic concept of supply and demand. A high demand despite a lack of supply would mean an increase in prices. The OPEC uses this concept to their benefit, as they have an ability to manipulate supply figures to create a high demand.
However, you have a choice, as you can always do your part to reduce gas demand. Many people are starting to do this due to the rising prices. Developing alternative fuels is an important way to change from primarily fuel users to major fuel producers.
Back in the 70s when OPEC learned how to flex its economic muscles, U.S. consumers demanded alternative fuels. The idea died a natural death when oil prices became reasonable and the oil crisis became less of a concern.
With the OPEC raising prices and monopolizing the oil industry, the need for alternative fuels is becoming real again. It can also help America's farmers find a new way to be productive, as there are alternative fuels made out of corn, among other farm products. This may sound only possible in an alternative universe, but who knows - the farmers just might replace the OPEC as the world's number one source for oil.
Less than a quarter per gallon in Venezuela - you can't get much cheaper than that. At this point, you'd be grateful to fill up your tank and get change back from a hundred dollar bill! And when the time comes to ask why gas prices are so high, most of the world's government blame worldwide crude oil costs.
That would be referring to the price per barrel controlled by the OPEC. As with any monopoly, when you control most of the supply, you get to control the prices. One of the strategies the OPEC uses to further increase prices is setting "output restrictions", where they decide to produce less oil to make it appear like they need to increase the price per barrel.
It's almost like deciding how much you get paid, then demanding that your boss sign the check. The situation in the United States is slightly different, as environmental concerns come into play. Oil companies blame the EPA Tier 2 regulations on low sulfur fuels as a factor in price increases.
These new regulations, however, are designed to improve the state of our environment. As a result, it becomes a tug-o-war between breathing fresh air and driving a vehicle. Do we care more about breathing or driving? Another factor that has hindered oil production are recent natural disasters, such as Hurricane Katrina and other powerful storms that have hit America. Regardless of the environmental impact, the refining capacity is lower.
No matter where you live in the world, gas demand is rising. And we're not just talking about the USA. The rate of gas consumption has rapidly gone up in India and China. These new gas users compete for OPEC's "black gold" which makes the market more challenging for buyers and more lucrative for suppliers.
The OPEC doesn't control certain oil-producing countries, but that doesn't exempt them from certain issues. Political instability in Venezuela and Nigeria can interrupt oil production and exports without warning.
Gas prices can go up or down (mostly up) because of the basic concept of supply and demand. A high demand despite a lack of supply would mean an increase in prices. The OPEC uses this concept to their benefit, as they have an ability to manipulate supply figures to create a high demand.
However, you have a choice, as you can always do your part to reduce gas demand. Many people are starting to do this due to the rising prices. Developing alternative fuels is an important way to change from primarily fuel users to major fuel producers.
Back in the 70s when OPEC learned how to flex its economic muscles, U.S. consumers demanded alternative fuels. The idea died a natural death when oil prices became reasonable and the oil crisis became less of a concern.
With the OPEC raising prices and monopolizing the oil industry, the need for alternative fuels is becoming real again. It can also help America's farmers find a new way to be productive, as there are alternative fuels made out of corn, among other farm products. This may sound only possible in an alternative universe, but who knows - the farmers just might replace the OPEC as the world's number one source for oil.
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