by Marie Devine

Created on: April 03, 2008

There are things that we can do individually and nationally to combat the rising gas prices. We need to look at the cause of the increase, then, we can use wisdom to overcome the continual rise in prices.

GASOLINE USAGE AND PRICING:
The United Staes used an average 385 million gallons a day in 2005, 44% of the total US consumption of petroleum products. United States Department of Energy reported in March 2007 that of the cost of gasoline was apportioned as 52% for the crude oil, 24% for refining, 15% for taxes, and 9% for distribution and marketing.

In January 1999, the cost of oil was $8.00 a barrel. It has gone up to $110 and receded back around $100 a barrel of oil. In 1981 the United States had 324 oil refineries; now only 148 oil refineries, causing us to import more of our oil at an additional cost of about $.99 (99 cents) a barrel.

Primarily the rising demand for gasoline and crude oil products in our country and around the world is fueling the increase in prices. Attacks on pipelines, conflicts, and weather damage all contribute to reduction in the amount of oil available. Western countries average one of highest per person usage. One reason is we do not tax as highly as other nations. Higher taxes could come if we do not voluntarily cut use. Britian pays over 7 US dollars a gallon because of taxes.

HIGH PRICES FOR THE FORESEEABLE FUTURE
In October 2007, the chief economist of the International Energy Agency, Fatih Birol voiced his expectation that oil prices will remain high for the foreseeable future due to rapid increases in demand from the rapidly growing economies of India and China. The problem will be magnified by the fact that major oil exporting countries are developing rapidly and using more oil in their own country, leaving less for export. Indonesia no longer exports oil; and Mexico and Iran will exceed their production of oil in about five (5) years. Russia also is growing rapidly. When the needs of these nations exceed their production of oil, they will not only stop exporting; but they will be looking to import oil, driving up costs further.

The director of the Energy and National Security program at the Center for Strategic and International Studies in Washington, Frank Verrastro, said that the military's use of 1.2 million barrel a month, 40,000 barrels a day, has little if any effect on global oil prices because that represents a small chunk of the 86 million barrels demanded each day globally.

Rep. Roscoe Bartlett, R-Md. said, he hopes

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