$4 gallon of gas demystified Record setting price of oil affects everyday life By Pamela Hinojosa |
 Photo by Patrick Desmond Texas A&M University-Kingsville student Marcelo Arreola fuels up at local gas station for $3.29 a gallon as gas average continues to rise around the country |
Today is a very special day for Joseph Garza. It is his 21st birthday. Like many college students at TAMUK, he wants to drive to Corpus Christi and have a memorable time at a few bars and night clubs.
Unfortunately, the drive from Kingsville to Corpus Christi will cost not only time and mileage, but gas. With the record high cost of gas at $3.29 a gallon, Joseph cannot afford the drive to Corpus Christi. Instead, he will have to settle for a small reunion of friends at a local restaurant.
This simple act of just going to a nearby city is affecting college students. How are students supposed to commute, travel, or simply go out of town to have a good time?
This past month the cost of a barrel of oil reached a mark of $114.“This was caused by a surprise dip in crude supplies and OPEC announcing its decision to not increase production,” said CNNMoney.com correspondent, David Goldman.
First of all consumers need to know what makes up the cost of a single gallon of gas.
“The components that make up the total cost of gas per gallon are the cost to deliver and produce crude oil to refineries, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. The prices paid by consumers at the pump reflect these costs, as well as the profits (and sometimes losses) of refiners, marketers, distributors, and retail station owners,” said a data and statistics specialist from Washington, D.C.
There are many causes and factors that are determining such high prices of gas.
“One of the reason for the rise in gas prices is due to speculation of major gas supply cuts from foreign countries,” said Texas A&M University professor of economics, James Wollscheid.
According to the website, www.eia.doe.gov, the official energy information statistics from the U.S. Government, gas prices fluctuate due to factors such as seasonal and local retail station competition. Additionally, gasoline prices can change rapidly due to crude oil supply disruptions stemming from world events, or domestic problems such as refinery or pipeline outages.
Prices of gas have slowly gone up since 2004 when a barrel of oil only cost $36.98. Corporate greed, poor planning, and insufficient government intervention have been some of the reasons that Americans have speculated for high gas prices.
One of the major factors influencing gasoline prices in 2005 was the increase in crude oil prices and the cost of the barrel of oil. Crude oil prices are determined by worldwide supply and demand by the Organization of Petroleum exporting Countries (OPEC). This fluctuation between supply and demand causes seasonal and temporary stable and sudden high gas prices.
“OPEC is more interested in the price than they are in selling oil, but by trying to keep prices over $100 a barrel, they’re going to end up selling less oil at a higher price,” Goldman said.
On the website www.akdart.com/gas.html, an article entitled The Causes and Effects of High Gas Prices, said other factors including American high gas prices were the increased demand for oil in places like China and India, gasoline taxes, civil unrest in Venezuela, war in the Middle East, political instability in oil-based countries, and too few refineries in the U.S.
With continuing high prices and no evidence that the public will get a break at the pump, Americans are worried of not only the economy but how these gas prices will affect their everyday lives.
“This will only inspire America to produce more oil and alternative fuels, and make other countries look past OPEC for oil,” said Goldman.
April 14: Historical Retail Gas Prices |
 visit www.eia.doe.gov / for more information |
| THINK THE U.S. HAS IT BAD- Global Gasoline Prices |
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1. Netherlands- $9.32 2. Belgium- $8.51 3. Germany- $8.44 4. France- $8.26 5. Italy- $8.26 6. UK- $ 8.07 7. U.S.- $3.35 |
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| source: http://www.eia.doe.gov/emeu/international/gas1.html |
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Summer gas savers
30 sec. idle- turn car off when expecting +30 second wait, saves more gas to start ignition again
take a load off- take unnecessary items out of car to decrease engine workload; 100 extra pounds cost 1 m.p.g.
drive 55- cruising at or under 55 mph improves m.p.g.
easy rider- avoid quick acceleration and sudden stops, acceleration uses more fuel where as maintaining constant speed uses minimal energy
get pumped up- deflated tires cost more energy to get rolling
staying regular- buying premium unless car specifies does not increase gas efficiency.
Cool your jets- Reduce the use of your air conditioner at low driving speeds. When driving over 40 mph using the air conditioner costs less fuel than having windows open.
stay tuned- regular maintenance like changing the air filter increases a car’s fuel efficiency
links to more gas tips online:
<www.tamuk.edu/southtexan>