Energy / Gas Prices

• Gas Mileage Better, But Are Consumers Buying It?

  President Barack Obama used his weekly address to say the country is ready to take control over its energy future. This is because oil production is at a 15-year high at the same time that imports are at a 20-year low. American commuters, however, still pay what the president said was the equivalent of a new tax by way of higher-than-average retail gasoline prices. The best way to shield consumers from pain at the pump, the president said, was to move away from oil altogether. A look at consumer trends, however, suggests the American economy isn't quite ready for low-carbon…

• What Happened to the Uproar Over Energy Speculators?

  Gasoline prices in the U.S. Midwest have pulled back from the seasonal highs reported in February. Motor group AAA reported Monday that U.S. commuters paid, on average, $3.69 for a gallon of regular unleaded gasoline, just over 1 percent less than they paid last week. For some markets, that's the first time gasoline prices have declined this year. A series of refinery issues, coupled with higher oil prices, left some motorists in February paying the highest they've ever paid seasonally for a gallon of regular unleaded gasoline. By the end of February, some drivers in the Midwest were paying nearly…

• Power Prices Bring Down Bulgarian Government

  Fuel prices can bring down a government, as the Bulgarian elite are now learning, and it doesn’t stop there. As tens of thousands of people hit the streets in Bulgaria and engage in bloody clashes with the police over rising power bills and corruption, the government’s resignation isn’t enough and the streets are still seething, with at least 25 people wounded in the clashes. Late last week, the Bulgarian government thought the mass protests-turned-riots would dissolve when the Parliament accepted the resignation of Prime Minister Boiko Borisov and his cabinet. Not so—the protests are economic, not political (at least, they…

• Why is the Washington Post Surprised at High Gas Prices?

  The Washington Post is surprised by the ‘mysterious’ high cost of gasoline in the US but does not mention in this article that the US government, at the insistence of the Israel lobbies, reduced Iran’s petroleum exports by 40% in 2012 by strong-arming countries to leave it in the ground and not import it on threat of third-party US sanctions.Petroleum prices are at near-historic highs this winter. The average for gasoline in the US has jumped to $3.75 and it is much, much higher in Europe. The price of petroleum as a primary commodity is not a very complicated calculation–…

• Americans Paying European Prices for Oil?

  Oh, how I miss the days of Bill Clinton’s presidency when the price of gas at the pump was around 99 cents per gallon. Yes, you heard me right: ninety-nine cents (US), less than one dollar per gallon. Over the years the price rose steadily until it hovered around the $3.60 mark where it was until last week. But then in just a few days car owners in the United States discovered, much to their horror that they need to dish out almost $4 per gallon.  In other words they would have to hand over roughly between $60 and $75…

• Where Do Your Gas Dollars Go?

  Americans pay more for gas than they do for vehicles on average, and the Union of Concerned Scientists has set out to demonstrate exactly where all the money goes. In a recent study, the UCS claims that “your gas money doesn’t support your local gas station, nor does it benefit you financially, even if you own oil company stock. Most of the money you spend at the pump goes directly to one place: oil companies.”The UCS breaks it down like this. Of the over $22,000 spent on gas over the lifetime of an average vehicle purchased in 2011 …  •   …

• Why, Despite the Boom in Oil Production, are Gasoline Prices Still High?

  On Monday, USA Today reported that the price of gasoline hit $3.60 a gallon for the first time since October — an early start in comparison to the usual price rise seen in the spring. The increase occurred despite world oil production climbing to 88.8 million barrels per day in 2012, about 2 million barrels higher than two years ago according to the Washington Post’s Brad Plumer. And about half of that increased production is due to an oil boom in the United States that’s driven imported oil to its lowest level since 1987.That increased oil production will bring down…

• Driving Doldrums: Gas Prices on the Rise - Again

  Here we go again—US gas prices are increasing, with AAA putting the average price at around $3.50+, and drivers wondering if they’ll ever figure out how to predict prices at the pump. They won’t--because even analysts find it challenging.Let’s try to simplify, if only to demonstrate why it’s impossible to predict gas prices. First of all, gas prices rise along with the price of oil, which itself is driven by a number of things, from basic supply and demand to Wall Street speculation and unrest in the Middle East--just for starters. From December to January, the price of oil increased…

• If Oil Production is Growing Why are Pump Prices not Falling?

  Those who have been told that oil production is booming may be wondering why the prices of oil and gasoline are climbing again.Price of Brent crude oil, dollars per barrel, daily, Jan 4, 2005 to Feb 5, 2013. Data source: Quandl. Click to enlarge.According to the EIA, world petroleum production in the first 10 months of 2012 averaged 88.8 million barrels a day. That's 2 mb/d, or 2.3%, higher than in 2010. The IMF estimates that world GDP grew by 7.1% between 2010 and 2012. If we used a global income-elasticity for petroleum demand of 0.75, we might have anticipated…

• Why U.S. Energy Independence Means Pump Pain

  A U.S. lawmaker said he was frustrated that embattled British energy company BP was posting better-than-expected fourth quarter profits while most Americans were paying top dollar for gasoline prices. A series of refinery issues, coupled with higher oil prices, resulted in a seasonal spike in gasoline prices. Motor group AAA reports that some regional markets started February by paying the highest they've ever paid for a gallon of regular unleaded gasoline for the month. Historically, U.S. lawmakers start pressing for emergency relief once prices march toward $4 per gallon. A university report this week states that new vehicles are setting…