http://my.highschooljournalism.org http://my.highschooljournalism.org en-us Copyright 2008 - All Rights Reserved. Wed, 19 Jun 2013 23:47:52 GMT 15 By Kaanchee Gandhi
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Gas prices are at their highest record for this time of the year at an average of $3.73 per gallon. However, in an improving economy, this is not expected to make a huge impact on consumer spending. The cost of gas has increased because the price of crude oil has gone up to more than 23 dollars per barrel since October. The rising demand for oil is a major factor in these growing crude oil prices. Between 1988 and 2004, worldwide demand for oil has increased by 27 percent. Economic growth among countries such as China and India has been a main contributor to this growing demand. In 2008, oil prices peaked because of emerging markets and the belief that oil was running out. This time, the reasons mainly revolve around politics. Sanctions have been placed on Iran after news that they were building atomic weapons surfaced. Iran threatened to close off the Strait of Hormuz if this sanction affects its oil exports. This strait is used for 35 percent of the world’s oil exports. Rising gas prices are threatening the slow economic recovery in the U.S. High oil prices have played a role in recession since 1973. Consumers are now thinking twice before spending on large items such as furniture and appliances. It is also affecting the amount of money being spent on day to day things such as dining out and going to the movies. This means more money is being moved out of the country and less is being spent inside. “As a new driver, I find myself not being able to go the places I want to go because of the spike in gas prices. My parents are reluctant to give me their car since most of our cars run on diesel,” said Yasmine Inaya, sophomore. High gas prices are not uncommon for America. Gas prices tend to peek in April and early May as demand rises. During summer vacation time, there is usually an increase of ten cents per gallon as people travel more. In order to offset these costs, people have started to drive less and take fewer vacations. Drivers have been using more public transportation to travel. According to a study done by the American Public Transportation Association, an additional 670 million passenger trips are expected as gas prices reach $4 per gallon. “Our family has had to cut back on outings because of the cost of gas,” said Rachel White, sophomore. The Obama administration has limited off-shore oil exploration because they believe it will do little to lower the cost of gas. Currently, however, U.S. oil production is at an eight-year high. President Barack Obama spoke at a campaign event, March, 9 in Houston, Texas. "We can't just drill our way to lower gas prices - not when we consume 20 percent of the world's oil," said Obama during the campaign. Obama believes that while drilling for oil is important, America should, at the same time, focus on solar, wind, biofuels and other emerging technologies. Gas prices will most likely play a role in the upcoming presidential election. A poll done by the Washington post shows that 2/3 of Americans say they disapprove of how the president is handling gas prices. “I think America needs to open up our resources here; that way we won’t have to rely on other countries as much,” said White. Still, economists believe that since the market is slowly growing, these prices will not have as much as a negative impact on the economy as in the past. People are expected to pull through this peak in prices with more ease than in previous years. ]]> Tue, 24 Apr 2012 16:07:23 GMT