Gas prices skyrocket as the global energy crisis worsens

US oil prices have skyrocketed $120 since crashing to negative $40 a barrel in April 2020


Americans drive three trillion miles a year, equal to 820 trips between Pluto and the sun. The United States uses 178 million gallons of gasoline a day. A spike in gas prices affects everything from the cost of bread to the amount of taxes available for community needs. A sharp rise or fall, instead of more gradual movement, can have a huge impact on the world's economy. Gas prices are largely controlled by OPEC, or the Organization of the Petroleum Exporting Countries, an organization that includes Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

Before 2009, Indonesia was a member of OPEC, but chose to suspend its membership in January of that year. The organization's 12 countries control 40% of the world's crude oil supply. This puts it in the unique position of having a lot of influence on the price of gas around the world.

OPEC controls gas prices by either increasing or decreasing the amount of oil available. If the amount available goes down, the prices go up. This is the law of supply and demand. The organization may choose to lower their available inventory by slowing down production or by putting more of the oil produced into reserves. To increase the amount of oil available, the members begin to produce more oil, or open up their reserves as inventory.

This increase or decrease in supply can affect the cost of oil in indirect ways as well. If the amount of oil is decreased, the price of crude oil increases, but not only due to the amount of oil available. Gas production companies, the companies responsible for refining and then selling the oil, may get nervous over a decrease in crude oil coming from these countries. To protect their profits from further decreases, they may raise gas prices even more. Just the threat of decreases in oil production can raise gas prices.

The purpose of OPEC is to try preventing any sudden, extreme changes in gas prices. If one country is not producing as much oil as normal, they have other countries pick up the slack to stabilize the market. They are responsible for keeping the gas prices from falling too low, normally trying to avoid prices of below $50 US Dollars (USD) a barrel.

The members meet twice a year, in March and September, to discuss the world economy and oil production rates. New policies may be voted on, new memberships approved, and a chairman of the board is voted into place. Each member country sends a "governor" to the meeting, who is a representative of his or her country, and casts votes based on the needs of that country. OPEC may also call special meetings in times of crisis if there is a problem that needs immediate resolution.

The cost of crude oil controls more than just the price of gasoline; heating costs are also affected. Higher gas prices also influence the cost of travel. If gas prices are high, car buyers are more likely to buy smaller, more gas efficient vehicles. Fewer families can afford to travel, decreasing the money brought into the economy by tourism.

The United States, Canada, Mexico, Russia, and China, among others, all produce oil, although they are not members of OPEC. It is hoped that through better refining techniques and more research in other forms of energy, the world's need for gasoline can be greatly reduced, thus reducing the influence of this organization on the price of gas.

Global Energy Crisis???

Democrats have greatly shut down fossil energy production SPECIFICALLY so energy prices go up artificially.

This propaganda "programs" the population by "teaching" them that fossil fuel is "expensive". Then the population is more open to the TRILLIONS the Democrats will then pay the climate-industrial complex for supposed "green" fixes.

Problem is, the "green fixes" dont work reliably, and they pollute as much or more than legacy energy. You can't repurpose a gigantic windmill when it expires, just bury it. You cant repurpose a 1,200 lb. lithium car battery after it is used up. So guess what you do? You guessed it, burry it. (Use your brain and do your own research on this)

Don't be a slave to this illusion you are being fed. We will transition to newer energy for EXACTLY the same reason we left coal stoves and oil lamps, because it makes sense, not because our government overlords told us we will..

What does the "government" ever get right? Why trust it with such an important issue when thats never how it has worked in the whole of history?

As expected, a bunch of idiots don’t get the basic supply/demand thing. Oil production was reduced to make sense for their business. So, we are in surge of demand while the production is still reduced, so what do you expect? The key is to not to drive gas guzzlers and for that, we are already ahead of game as better SUVs and performance cars are hybrid or non-gas cars. As for heating, it doesn’t have to be oil based. The pipeline thing was properly handled. For anybody that’s complaining, the next time we come to conversation about laying down the pipeline, make sure to have that in your backyard FIRST before complaining that pipeline thing isn’t happening for you.

ALL Biden talks about is Covid and Vaccines! You Need to address other major crisis happening in our country. Such as the open border over 2 million illegals that came over into our country the past 3 months and more are coming. There’s an AIDS CRISIS with the Haitians. Huge inflation problem gas prices supermarkets items are out of control supply chain issues. energy prices skyrocketing what does it take for our incompetent leader to start & take action. Wake up sleepy Joe you are INTENTIONALLY destroying OUR COUNTRY!!

AND why is CNN ALWAYS on a commercial when I check and I mean ALWAYS!! So much is happening in our great country yet they are crickets!!

JOE BIDEN on his 1st day in office, destroyed our energy independence just because Trump achieved it. Because of Joe's hatred, the USA is now short on oil. Joe begged OPEC for more oil, they told Joe FU, and your horse too. What else has Joey screwed up? #1. Opened our southern border for a million+ covid infected illegals to come over into Texas. #2. Has bussed these covid infected illegals all over the country at 100,000 per month. #3. Missed his nationwide goal (70+%) of herd immunity with the Trump Vaccine. #4. Has finally decided that "defund the Police" is a bad idea. #5. Has jump started runaway inflation. #6. Has given his ok for the Russia to Germany oil pipeline. #7. Gas & energy prices are near double nationwide. #8. Has gotten a record number of people on food stamps, #9. Implemented the famous "Chinese Fire Drill Plan" withdrawal from Afghanistan. #10. Has blown up in reprisal, 3 aid workers and 7 schoolkids in a drone attack in Afghanistan. Joe has certainly been busy his 9 months in office, much more liberal destruction to get done.

Let's see?

So a year ago the US was the biggest exporter of Natural gas, energy independent and gas was $1.89 a gallon and Europe depended on our energy while Trump stopped the Russian pipeline from being finished into Germany and stealing billions in revenue from American businesses and American workers

2021 Biden in 8 months has told the Russians they can open their pipeline, shutdown the American pipeline eliminated thousands of jobs, billions lost in the sale of energy, made us dependant on OPEC once again to supply us oil (remember the gas shortage of the 70s caused by OPEC) gasoline is $3.50 a gallon, our gasoline supply line was hacked and shutdown Americans buying gas for 2 weeks until Biden paid the bribe to Russian hackers.

All this in 8 months, great job you elected a moron Democrats

Crisis. There is no crisis.

Believe what you want but you might want to consider what republicans, the press, and business people think.

Here is a headline from the Houston Chronicle today.

“Oil hits $80 a barrel for first time since 2014, another recovery milestone for Houston”.

Sure doesn’t look like they think rising prices are a problem except for when they want to criticize the Biden Administration.

This is exactly what the oil companies want. It makes it profitable for them reopen all of the shale oils operations that they bought up at rock bottom prices during the pandemic shutdown.

I don’t even need to read the comments to know someone needs to remind these people that:

A. The government (including the president) doesn’t tell private businesses (like oil companies) what they can charge for goods or services

B. The global pandemic significantly reduced the demand for oil as people were not traveling nearly as much during the peak of the pandemic and

C. There was a price war between Russia and Saudi Arabia that significantly lowered the cost of oil, and Trump actually helped ensure that price war ended by facilitating negotiations meaning if ANY US president’s actions impacted the cost of fuel, it was actually Trump.