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Gas Above $3 for 1,000 Days, Why That is Not Likely To Change

Gas Above $3 for 1,000 Days, Why That is Not Likely To Change

 

  Americans have now gone a full 1,000 days with the average gas price over $3 a gallon, something we have never seen before, 1200 WOAI news reports.

 

  And experts say our chances of seeing gas under $3 again, even briefly, are slim to none.

 

  "Expensive gas prices, unfortunately, are not going away," Michael Green of Triple A Texas tells 1200 WOAI news.  "In fact, prices are likely to remain very high, in fact, higher than $3 a gallon, for the foreseeable future, barring an international recession."

 

  Experts say several factors are pushing gas prices up and holding them up.

 

  First of all, horizontal fracking, which is the way most new oil sources are being mined, is far more expensive to carry out than traditional oil drilling.  In fact, most of the easily obtainable oil was obtained years ago.  And tar sands oil, which is seen as the next big source for oil, will be even more expensive to obtain.

 

  Also, Green says, rapid industrialization in Third World countries from China to India to Brazil, mean a greater demand for oil, as people in those countries demand the benefits of a middle class life, including cars.

 

  "The fact remains that countries around the world need oil and gas to run their economies and live their lives, and we should expect demand for oil to increase into the future," he said.

 

  Booming U.S. production, experts say, is preventing prices from rising any faster as demand for oil grows, and supplies dry up from countries like Venezuela, which are suffering from mismanagement of their oil reserves, and Iran, where oil exports are limited by political sanctions.

 

  Experts say politics here at home are also crimping oil supplies.  Resistance from environmentalists to building facilities like the Keystone Pipeline, as well as new refineries and oil terminals, as well as legal resistance to drilling itself, also has the impact of pushing prices up.

 

  There will also continue to be 'danger premiums' placed onto the price of oil by the world markets, like we have recently seen with the Egyptian and Syrian civil wars.  If traders think that regional conflicts in the always dangerous Middle East will drive down oil availability, prices on world spot commodities markets, where oil prices are set, will continue to rise.

 

 

 

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