Thursday, September 07, 2006

Who controls the oil and gas prices? YOU DO!

Are gas prices high compared to previous years?
Actually no. In 1981, gas was actually more expensive (roughly 20-27 cents more) than now! This is with inflation being factored in. (Source: Gibson Consulting)

Who controls the oil prices?
This is simple. Supply and demand. The more you demand, and the less supply, the higher the price. Americans dominate the demand in the world market. Consider these facts:

  • Americans are 5% of the world population but consume almost half the demand of gasoline around the world. (Source: Gibson Consulting) This is INCREDIBLE! We are only 5% of the world yet we take in nearly half the demand of the world's gas! Why is that? Because we want our lawns cut, we need big trucks, we have large RVs, boats, etc. Everything that moves in America burns gas!
  • America consumes roughly 20 million barrels a day, that's 13,889 barrels every minute! (Source: Howstuffworks)
  • It takes 14 Exxon oil ships just to feed America's hunger for gas for ONE day. (Source: Howstuffworks)

You as the consumer have the power to lower gas prices. Here are some tips:

  • Not overspeeding reduces gas consumption in boats, cars, etc.
  • Car pooling with friends and family.
  • Choosing vehicles with 30+ miles per gallon.
  • Walking instead of driving to nearby places (if it is safe).
  • Educating others so they know that they control the market.

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