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
. Although offshore drilling being shut down has hurt this number, typically 28 percent of U.S. oil production is met inside the country. There have to be more imports now since oil is being produced less.
More driving during the summer
Summer driving has made the demand for oil lately go up. More individuals will drive longer distances this summer, reports the Automobile Association.
U.S. fuel comparisons
The United States is presently the largest consumer of oil and gasoline. China is in second place but could quickly become first with their demand. Gas can cost up to $ 8 per gallon in European countries that have taxes. Since supply is going down when demand goes up, numerous people can have no other choice then to switch to fuel efficient vehicles.
