Gas is going up, up, and up, so what’s the deal???
From the Associated Press’ Darcie Loreno:
The price at the pump has climbed 46 cents since Nov. 20. The highest average price in the nation is $3.57 a gallon in the San Francisco Bay Area. The average U.S. price of regular-grade gasoline jumped 14 cents a gallon over the past two weeks to $2.64.
According to AAA, the country is seeing some of the most expensive prices in over a year. AAA says with the forced shutdown of the Gulf Coast and some Mid-West refineries due to last week’s winter weather, gas stocks and prices have skyrocketed…66 percent of state averages spiked by double digits.
“When close to 40% of U.S. crude production is offline because refineries are closed, there is going to be pain at the pump until operations resume,’ Jeanette Casselano McGee, AAA spokesperson, said in a release. “The good news is the nearly two dozen impacted refiners are expected to restart operations this week, if they haven’t already. That means regular gasoline deliveries will resume and impacted stations will be re-fueled.”
But some suggest the quick and extreme rise in fuel prices is because President Biden put the brakes on the Keystone XL Pipeline. I followed that line of reasoning and it led me to an article from Jacksonville, Florida’s First Coast News:
Experts said the move did little to harm the number of permanent jobs coming from the pipeline.
Tom Tunstall, research director for the University of Texas at San Antonio’s Institute for Economic Development, has conducted extensive research on oil and gas in his nearly 10 years with the university. He said while prices at the gas pump are climbing, it’s independent of Biden’s decision.
“If oil prices go to $4 a gallon, it will be for other reasons than the fact that the keystone isn’t under construction,” Tunstall explained.
He said the reason is due to other nations curtailing their own production, along with other market forces causing U.S. producers to cut back on the country’s own production of oil.
As far as jobs go, Tunstall said the move did little to harm permanent jobs.
“It’s important to note that the jobs associated with pipeline construction are exactly that—they’re construction jobs,” he said. “And so, by definition, they’re temporary. Once the construction is complete, then the jobs basically go away … There may be several thousand jobs associated with the construction, (but) I think it may only take 35 people to operate the pipeline once it’s done.”
So what exactly is causing the spike in fuel prices at the pump? Experts say it boils down to two things: winter weather, and supply and demand.
According to GasBuddy, the price of gas has already been impacted as millions of barrels of refining capacity have gone offline due to the extreme cold in the South.
So, it seems it’s all about that “supply and demand” thing again. Folks are beginning to get out and about in spite of the pandemic because they’re going a little stir crazy, and because the vaccine’s instilling some confidence. Between these factors and the extreme weather that shut down oil production out west for a bit, the demand is higher and production is slightly off. What do the oil companies do? Raise their prices, of course. Capitalize. It seems it’s, as always, about money and maximum profit for the oil companies rather than looking out for us Americans, many, MANY of whom are struggling just to survive.
I fear it is also ‘fueled’ by the new president’s push for electric vehicles and the many new electric vehicle options available and coming available. Big Oil wants to get it’s licks in and profits up while they can. I’m sorry, but this mentality really and radically gets under my skin.
My next car WILL be electric!!!
Jan is a singer, a songwriter, a licensed body worker specializing in CranioSacral Therapy, and a teacher. She is an advocate for the ethical treatment of ALL animals and a volunteer with several animal advocacy organizations. She is also a staunch believer in the need to promote environmental responsibility.
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