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
Gas and oil demand dropped throughout 2008. Individuals paid $ 4 and more for gas because of the drop. This drop also coincided with increased interest in fuel-efficient and hybrid cars. By late 2009, the trend had reversed, though interest in fuel efficient automobiles continues to rise. There is more of a demand for oil than there is for gas considering fuel for heating is needed within the winter.
Production of U.S. oil
. 28 percent of all oil requirements are supplied in the U.S. although that has changed a little since offshore drilling is shut down. There have to be more imports now since oil is being produced less.
More driving during the summer
There has been a rise in oil demand because of summer vacations requiring more driving. According to the Automobile Association, there will be further road trips taken by people this summer meaning more driving.
Comparing fuel use within the United States
The largest consumer of fuel is certainly the U.S.. With the demand China has, they are second but could beat the U.S. and become first soon. Gas can cost up to $ 8 per gallon in European countries that have taxes. If U.S. demand continues to increase, and supply continues to decrease, then the popularity of fuel efficient autos is sure to continue increasing.
