Given the fact that the vast majority of the US operates only through the use of oil and gas, regardless of the needs of the environment, and the calls to end foreign oil dependence, other sources of energy should be used in the United States.
The biggest factor in rising costs is the price of crude oil, followed by the cost of refining. If a gallon of gasoline costs $2.90, crude oil accounts for about $1.60. The cost of crude oil on the futures market has risen about 33 percent in the last year. Refining costs are another 64 cents per gallon. Refining margins have went up in the past couple years, and were high in the spring because they were shut down for seasonal maintenance. They are also still recovering from the hurricanes. Oil companies don't set crude oil prices, the global market does. Countries like India and China are growing, and that has created more demand for oil and gas. In the United States, we're still going strong when it comes to energy use. Gasoline prices have increased sharply in the last two years. Unless peace suddenly breaks out around the globe, crude oil supplies are likely to remain tight. Decreasing demand is the best choice in the short run. In the future we can look for alternative fuels, develop new oil fields, and built new refineries.
Many countries are paying far more for gas than we are. Our average for gas is $1.892 per gallon. In Norway they are paying approximately $9.85 per gallon. The second most expensive gas is in Paris. They are paying about $9.43 per gallon. Then there are countries like Venezuela and Iran who are paying $0.12 and $0.41 per gallon. You could fill up you SUV for $3 per gallon. It is more expensive to buy a gallon of milk in Venezuela that to fill up your tank. Many people have to resort to other sources of transportation. The subway and bikes are now some people’s main source of transportation.
Oil companies sell to refineries, refineries sell to distributors, and distributors...