Although there is "ample" supply and decreasing demand for gasoline, gas prices are at "their highest levels ever for this time of year." Gas prices are predicted to remain high until tensions in the Persian Gulf are relieved, where Iran has threatened to "close the Strait of Hormuz if the U.S. and other countries impose more sanctions on its nuclear program." Although Iran provides 2.2 million barrels per day to other parts of the world, Iran imports are prohibited in the United States, and such stress has left crude oil prices at about $100 per barrel.
National gas averages are up approximately $0.17 from last month, and locations such as California pay the highest prices while portions of the Midwest boast the lowest prices.
Due to such increased prices, demand for gasoline and oil has declined. This week, Hovensa LLC "announced plans to close a major refinery in the U.S. Virgin Islands next month that produced about 350,000 barrels per day" due to losses of "$1.3 billion over the past three years" and predicted continual losses.
Although paying more and more at pumps is not something people enjoy, perhaps increased gas prices harbor a little good news as well. Because the cost of driving is becoming more expensive, people are finding ways to consume less gas, whether it be by switching to a more fuel-efficient vehicle, carpooling with others, taking public transportation, or the likes. These all have positive impacts on the environment and our pollution emissions. Also, because of decreased demand, the closing of refineries, such as the one in the Virgin Islands, holds positive impacts for the environment as well.
Sunday, January 22, 2012
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2 comments:
I also agree that gas prices are going to stay really high in till US makes some kind of agreement with Iran. Iran is obviously frustrated with the US and they know the US needs oil so they are over pricing it and if the US keeps spying on Iran then they keep raising the prices and we might not see a decrease in price of gas anytime soon
I think that it's a very good thing for environmentalists and sustainable energy activists that gas prices are staying high. With many Americans still reeling from the economy, the higher gas prices do provide more incentives to switch to more renewable and sustainable energy sources. Furthermore, this puts more emphasis on green jobs. While the short-term effects of higher gas prices are emptier wallets, I think the that long-term effects are definitely very beneficial. Polluting less now will go a long way in the future.
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