Gas shortage to come?
Rachael Morgan
11-25-08
“Long-awaited relief at the pump continued over the last week with the nation's average retail gasoline price falling below $2 a gallon to its lowest level in 46 months, the Energy Department said Monday. Gas prices have fallen so far and so fast that some experts are concerned Americans who have drastically curtailed their thirst for gasoline might be ready to guzzle again.”
There has been a huge decline, over the past few months, in gas consumption by American consumers. In part because of the record high prices established this summer. Now as gas prices continue to fall, to their lowest prices in a few years, demand is slowly rising, as consumers with SUV owners can once again fill up with out breaking the bank to do so. This demand could, however, contribute to yet another gas shortage this year. Refineries have slowed production to match demand recently, and with such an unstable economy they are not sure of how much of an increase in production should be set into motion.
“The U.S. average price of a gallon of self-serve regular gasoline fell 18 cents over the last week to $1.892, according to the Energy Department's weekly survey of filling stations. That was $1.205 below the year-earlier price and the lowest since the $1.853 recorded on Jan. 24, 2005.”
As our gas prices continue to drop, so does our economy. As enticing as relief at the pump is, until our economy is stable yet again, this will only continue to disrupt our economy.
Sources cited:
http://www.latimes.com/business/la-fi-gas25-2008nov25,0,3196091.story
4 comments:
It seems like everything is effecting the economy now. Hopefully the economic crisis can be solved very soon.
I definitely agree with you. Hopefully the holiday's will help the economy globally and within our own nation.
I am glad that gas prices are finally coming down but prices in other industries are going way up. I think the gas situation is better because it is cheaper but because the gas price was so high people actually started looking at other ways to commute and stepping back to figure ways to help.
This is unfortunate, really, because even though gas prices fall it seems everything else is going up. When gas was expensive, the cost of delivery was expensive, and prices for goods rose. But now that gas is inexpensive, compared, the prices of goods are staying the same.
At least we can get a little relief at the pumps, though.
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