The Energy Information shows us that gas in July was the lowest it had been since June 2004. Fuel efficiency has gotten better, and there is a soft economy meaning the demand for gas is lower. This lower demand is causing, and being compounded by, increasing gasoline prices.
Gas demand drop
In 2008, demand for oil and gas dropped. People paid $ 4 and more for gas because of the drop. This drop also coincided with increased interest in fuel-efficient and hybrid automobiles. By the end of 2009, more fuel efficient cars were being made but the demand went up. The demand for oil involves more than just gasoline, though, as a demand for fuel and heating oil tends to go up in the winter months.
Producing oil in the U.S.
There is a strong connection between U.S. oil production and gas prices. About 28 percent of the daily requirement of oil in the United States is met domestically, though the shutdown of offshore oil production is starting to trickle down. With so little of the oil used by the United States being produced domestically, the small rise in demand is requiring more imports.
Summer Driving increase
There has been a rise in oil demand because of summer vacations requiring more driving. More individuals will drive longer distances this summer, reports the Automobile Association.
U.S. fuel comparisons
The largest consumer of fuel is definitely the U.S.. With the demand China has, they’re second but could beat the U.S. and become first soon. There are heavy taxes in European countries on gasoline meaning gas can costs $ 8 per gallon in some places. Fuel efficient automobiles will probably become more popular with supply decreases.
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