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Gas Prices:
Leaving Drivers in the Dust
Gas prices soared in the past few weeks due to higher energy costs nationwide.
At
least eight U.S. oil refineries were closed because of damage from Hurricane Katrina, which lead to this increase. People
all over the nation felt the affects of the gas prices. Changes in price jumped up to $1 over night in some cities.
Students
at the University of Hartford have been voicing their concerns about how the increase in cost has affected them.
A
vast majority of students have cars on campus. An exact number was not available from Public Safety, as people are still registering
addition cars each day.
Those students at the University conducting student teaching, an internship or a job this semester
felt the effects of the rise in gas more than other students on campus. Because they are required to drive off campus daily,
wallets are lighter but hopes are high for a break in the price.
"I have to go student teach either way," said Meredith
Posner, "I just take turns more with my friends with driving for when we want to go off campus for extracurricular activities
(ie, the weekend)."
And that seems to be the path many students are taking. They carpool to the mall, to the bar, to
the movies and out to eat. Those without cars - the students who bum rides off friends - are feeling the affects as well.
"It
affects me, and I don't even have a car. When I bum rides off of people I feel obligated to throw them a few dollars for gas
money," said Jakob Voychick.
Many students still drive off campus the same amount as before the price change. They
are just smarter with it. Many will complete all of their errands in one trip and carpool with friends.
The greatest
concern - with probably the least amount of pity�- are those students with cars who get low gas mileage. But that may
come with the territory. It may be an awesome looking car, but the tradeoff could cost additionally at the pump.
"I
think we all should rethink our vehicles and make sure that we each own a vehicle that properly suits our needs. We shouldn't
own vehicles for their hot looks and power and immense space. Those beauties are the ones that guzzle up all of the gas,"
said Catherine Colquhoun.
Gas prices have recently returned to about the same price as before Hurricane Katrina occured.
Hopefully there will not be another increase in the prices for a long time.
In parting words from Grace Mehm: "I have
little sympathy for people who drive cars that get five miles to the gallon and then complain about gas prices. As long as
people are willing to buy and drive gas guzzlers we will continue to be a gas-dependent country with gas prices out of control
because the demand for gas will outweigh the supply."
Gas Prices Creep Higher
WASHINGTON, July 20, 2004
 (AP / CBS)
Pump prices are highest on the West Coast, averaging $2.113 per
gallon, and cheapest on the Gulf Coast, averaging $1.818 per gallon. In the Midwest, gas averages $1.892 per gallon.
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(CBS/AP) The retail price of gasoline rose for the second week in a row, climbing to nearly
$1.93 per gallon, after declining during the five previous weeks, the Energy Department reported Monday.
The government
survey said the average price nationwide of regular-grade gasoline rose 1.1 cent to $1.928 per gallon last week. Prices are
40.4 cents higher than a year ago.
Average nationwide prices peaked at $2.06 a gallon during the week ending May 22.
Pump prices are highest on the West Coast, averaging $2.113 per gallon, and cheapest on the Gulf Coast, averaging
$1.818 per gallon. In the Midwest, gas averages $1.892 per gallon.
The jump in crude oil prices in the last few weeks
is apparently being passed along to consumers, reports CBS Radio News.
The price of light crude for August delivery
rose 39 cents Monday, settling at $41.64 per barrel on the New York Mercantile Exchange. After falling from recent highs,
oil prices have been surging again lately as traders react to concerns about terrorist attacks, strong demand and relatively
tight supplies of gasoline.
On the Nymex, gasoline set for August delivery rose 0.88 cent to $1.2917. August heating
oil rose 0.96 cent to $1.1055 per gallon, and August natural gas fell 6.9 cents to $5.818 per 1,000 cubic feet.
On
the London's International Petroleum Exchange, Brent crude oil futures fell 10 cents to $37.90.
The United States'
inventory of gasoline is 0.6 percent above last year's levels, but at the lower end of the five-year average range for this
time of year, according to Energy Department statistics.
Gasoline demand is about 2 percent higher than last year,
averaging 9.3 million barrels per day for the past month.
April 18, 2006 — Brace yourself for higher gas prices, if history is any guide.
Prices were up 9.1 percent in March, thanks to last month's inflation spike, and for the the first half of
April the price of gas is up another 7.4 percent.
In the Rose Garden today, President Bush said that along with the war on terror, gas prices are a "major problem"
facing the American people.
"I'm concerned about higher gasoline prices. I'm concerned about what it means to the working families and
small businesses," Bush said.
Prices at the pump have already pierced the $3 a gallon mark in several major cities. And with oil prices
setting another record at $71 a barrel, the $3 gallon price tag is likely to spread.
"One little natural disaster, a refinery fire, any type of instability in various parts of the world could
push us over that edge," said Mantill Williams of the American Automobile Association.
Impact to Overall Economy
Economists say the issue now is not whether high energy prices will slow the economy, but by how much.
In a letter released today, Ben Bernanke, the nation's new Fed Chief, said the surge in energy prices has
already "significantly reduced" the spending power of consumers and businesses, shaving "between one-half and 1 percent" off
the gross domestic product.
In other words, high energy prices have cost the economy up to $125 billion a year.
"Bottom line —the combination of higher oil prices and higher short-term interest rates all but guarantee
a slower-growing economy in 2006," according to J.P. Morgan's chief economist Anthony Chan.
How much slower will depend in part on how high energy prices go. If history is any guide they'll keep rising
right into Memorial Day.
Aug. 22, 2005 — Americans are not just dissatisfied with the cost of gasoline, a sizable number
are downright angry about it. And they might get madder still: Many are cutting back elsewhere to keep paying at the pump,
and if prices hit $3 per gallon long-term, more than six in 10 say they'll have to reduce their driving.
The public in some senses is being quite resilient in the face of $2.61 gas, a nominal high for the national
average. Relatively few — 22 percent — are driving less now because of the cost of gas, and about as few say they'll
cut back on driving because of gas prices in the next few months.
Instead three-quarters of Americans say that to afford gas they're either spending less on other things (45
percent), saving less (21 percent) or increasing debt (10 percent). And while just over half say gas prices are causing them
financial hardship, that's down from 64 percent in the spring — an indication that many people are accommodating themselves
to the situation.
That said, both apprehension and annoyance are running high. Eight in 10 are worried that gas prices could
seriously damage the economy, including 42 percent who are very worried about it. Ninety-four percent are dissatisfied with
the price of gas, and 44 percent are more than just annoyed — they're angry about it.
ANGER — The level of anger varies among groups. It's higher among Democrats (50 percent) than it is
among Republicans (37 percent) Women are more likely than men to be angry (48 percent vs. 39 percent of men). And anger about
pump prices peaks in the East, at 52 percent; it's lowest in the West, at 40 percent, even though the West consistently has
the highest average gas prices in the nation.
Naturally, those who say gas prices are causing them serious financial hardship — about a quarter of
the public — are by far the most likely to be angry: Sixty-eight percent are, compared with fewer than three in 10 of
those who aren't facing hardship.
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Angry about price of gas |
| ALL |
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44 % |
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| Men |
|
39 |
| Women |
|
48 |
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| Age 18-29 |
|
50 |
| Age 30+ |
|
42 |
| Age 65+ |
|
41 |
|
|
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| Income under $100,000 |
|
46 |
| Income $100,000+ |
|
32 |
|
|
|
| Car drivers |
|
45 |
| SUV drivers |
|
48 |
|
|
|
| Democrats |
|
50 |
| Independents |
|
41 |
| Republicans |
|
37 |
DEALING — But for now, most Americans are finding a way to pay. As noted, 45 percent say they're spending
less on other things to free up more cash for gas, and about one in five are saving less. Another one in 10 says they've had
to borrow more money on a credit card or use other borrowing.
Younger Americans and the less well-off are the most likely to say they're shifting spending on other items
to offset the rising cost. Fifty-five percent of those under age 30 are spending less elsewhere, as are 52 percent of those
in households earning less than $50,000. In contrast, just three in 10 of those in six-figure earning households have had
to cut back spending. Instead, they're more likely to be saving less.
DRIVING LESS? — Moreover, as noted, relatively few are cutting back on their driving. Overall, about
a third say they're driving less now than they did a year ago, and just about two in 10 say that's because of the price of
gasoline. Similarly, 23 percent of drivers say they'll drive less over the next few months because of the cost of gas.
But if most people are not driving less now, that may change. Sixty-three percent say that if gas prices reach
and remain at $3 a gallon, they'll find a way to cut back on their driving. Just a third says they'll continue to drive the
same amount and just find a way to pay for it. Even in the highest-income households, half say they'd drive less at that price.
ECONOMY — A large majority of Americans thinks that the high cost of gasoline has broader implications.
Eight in 10 say they're worried that prices will seriously damage the country's economy, including about four in 10 who are
very worried about it. The fact that 45 percent are spending less on other things could well have an impact on the economy,
which is largely sustained by consumer spending.
Democrats are more concerned about the effects of gas prices on the economy — 52 percent say they're
very worried about it, compared with a third of Republicans. Broad concern is highest among Americans being hit the hardest:
Two-thirds of those who say gas prices are causing them serious hardship say they're very worried about the economic impact.
HARDSHIP — In terms of the effect of gas prices on their own financial well-being, Americans are divided.
Fifty-three percent say the recent price increases in gasoline have caused them financial hardship, but that's down from nearly
two-thirds in April. A quarter say gas prices are causing them serious hardship, which too is down, from a third. Then, gas
averaged $2.24, close to a nominal high at the time. It's possible that spiking prices in the spring prepared, or at least
conditioned, people for the higher prices they're facing now.
Women are 15 points more likely than men to be feeling the pinch, 60 percent to 45 percent. And people in
the lowest-income households are twice as likely to feel hardship from gas prices as the highest-income Americans, 72 percent
vs. 35 percent. Democrats are also feeling it more than Republicans — 62 percent of Democrats say the higher pump prices
are causing them financial hardship; fewer than four in 10 Republicans say the same.
CARS vs. SUVs — Finally, despite their vehicles' lower fuel efficiency, SUV drivers are no more likely
than car drivers to say gas prices are causing them hardship, to be driving less as a result of the high pump prices, or to
be angry about them. The likely reason: SUV drivers are far more likely to be well-off financially than car drivers. The median
income of an SUV owner is between $50,000 and $75,000, but between $35,000 and $50,000 for car owners — meaning they
may not dislike the high price of gas any more, but they are better able to afford it.
METHODOLOGY — This ABC News poll was conducted by telephone Aug. 18-21 among a random national sample
of 1,002 adults. The results have a three-point error margin. Sampling, data collection and tabulation was conducted by TNS
Intersearch of Horsham, Pa.
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Now compared to a year ago |
| Driving more |
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14 % |
| Driving less |
|
32 * |
| Driving same amount |
|
50 |
*9 percent of respondents said they were driving less for reasons other than high gas prices.
May 1, 2006
 (CBS/AP)
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(CBS) With gas prices sky-high and no end of the Iraq war in sight, President George
W. Bush's approval rating hits an all-time low in a new CBS News poll.
Only 33 percent approve of his job performance,
Mr. Bush's lowest approval rating yet in CBS News polls. A majority – 58 percent of those polled – say they disapprove
of the president. Mr. Bush appears to be losing support from his own party. His approval rating among Republicans has dropped
to 68 percent. (Read the complete poll results here .)
Mr. Bush's ratings are even lower on the issues dominating news coverage: near-record gas prices and
the war in Iraq.
The poll found that 74 percent of Americans disapprove of the president's handling of the gas crisis.
Even more think that the administration has not developed a good plan to get gas prices under control.
DOES BUSH ADMINISTRATION HAVE CLEAR PLAN FOR KEEPING GAS PRICES DOWN?
No
 82%
Yes
8%
But President Bush is not the only politician to carry the burden of high gas prices. The poll found that almost
90 percent think the government as a whole is not doing all it can to keep gas prices down. Respondents spread the blame across
Washington.
WHO SHOULD HAVE RESPONSIBILITY FOR DEALING WITH GAS PRICES?
Congress
29%
Secretary of Energy
25%
President
24%
In what could be bad news for the Republican majority in Congress, 47 percent think that the Democrats would be
more effective than the Republicans at keeping gas prices down. Only 20 percent thought Republicans would handle the situation
better.
The violence in Iraq continues to damage Americans' opinion of the president. Exactly three years since the
president gave the speech declaring "major combat operations" in Iraq at an end, Americans say that war remains the most important problem facing the country, and most do not approve of the
way Mr. Bush is managing the war.
MR. BUSH’S HANDLING OF IRAQ
Approve
30%
Disapprove
64%
Secretary of Defense Donald Rumsfeld, whose job has come under fire from several retired generals, also receives his lowest approval rating to date.
RUMSFELD JOB
RATING
Approve
33%
Disapprove
49%
Don't Know
18%
Gasoline set to surge
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Pump prices could
shoot up about 25 cents a gallon over next few weeks to record high: analysts.
March 4, 2005: 3:11 PM EST
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NEW YORK (CNN/Money) - Gasoline costs are set to rise sharply to record levels soon, energy analysts said
Friday.
Prices at the pump will jump 12 cents a gallon early next week and another 12 cents by the end of the month,
said Peter Beutel, president of energy tracking firm Cameron Hanover.
"Right away, nationwide, we're going to see an increase of gas prices of 12 cents," Beutel said. "We'll see
it almost everywhere by Tuesday. In addition, sometime between St. Patrick's Day and the end of the month, I expect to see
an additional 12 cents. This is extraordinarily bad news for the consumer."
Beutel said he isn't using a crystal ball, but monitoring wholesale gas prices, which closed at $1.5075 a
gallon on Thursday up 50 cents since Christmas, according to the Oil Price Information Service. Higher retail prices are sure
to follow as gas stations scramble to keep up, he said.
"I'm not forecasting these changes," said Beutel, adding that an increase of 1 cent a gallon costs consumers
$38 million a day nationwide. "These changes have already occurred at the wholesale level."
Beutel said the increases are driven as oil prices rise, due to growing demand from China, India and other
developing countries, as well as maintenance costs at aging American refineries, among other reasons.
An increase of 24 cents a gallon would put the average retail price of a gallon of regular unleaded at nearly
$2.17 a gallon, according to the Energy Information Administration, the statistical arm of the Energy Department. An EIA survey
Monday put the average price at $1.928, up 2.3 cents from a week earlier.
Gas prices last hit a record $2.06 a gallon for regular unleaded in May, according to the EIA.
Oil prices struck $55.20 a barrel in trading Thursday, near record highs, but have retreated since. Gasoline
futures set a record at $1.5450 a gallon.
Tom Kloza, senior analyst at the Oil Price Information Service, agrees that gasoline will hit record highs
but perhaps not until later this month, he said, adding the national average could still top $2 within a week.
The rise in prices "may even take Martha (Stewart) off the front page for a while," he joked.
Kloza said there is nothing that can be done to stop the increase, short of discovering "dilithium crystals,"
the fictional fuel source used to power Star Trek spaceships. "This one isn't speculative," said Kloza. "The wheels are in
motion. It just takes a while for it to deluge into retail."
The news about the expected rise in gasoline was first reported in USA Today Friday.
Rising Gas Prices
By Ezra Billinkoff
Tuesday, September 27—In response to rising gas prices and concerns about the economy, President
Bush asked Americans to use less energy. After Hurricanes Katrina and Rita, gasoline production in the Gulf of Mexico came
to a stop. Oil equipment in the gulf was damaged, so it will be some time before supplies will return to normal.
Americans depend on gas to power their cars, their homes, and their businesses.
"People just need to recognize that these storms have caused disruption and that if they're able to not drive
on a trip that's not essential, that would be helpful," Bush told reporters this week.
Supply and Demand
Since the hurricanes, gas prices have climbed past $3 a gallon—the highest ever.
Higher gas prices can be explained by an economic rule known as supply and demand. The rule says that
the less there is of a product that a lot of people want or demand, the more expensive that product will be. Gold, for example,
is rare and so jewelry made with gold is expensive. Bronze is more abundant, so jewelry made with bronze is cheaper than jewelry
made with gold.
Americans need gas. To increase the amount of gas available, President Bush said he will release some of the
nation's stored oil and gas. The U.S. government keeps a Strategic Petroleum Reserve in case of emergencies. If more gas is
available, the price will go down.
Along with increasing the supply of gas, President Bush urged Americans to use less of it. With smaller usage
or demand for gas, prices can also begin to drop. Supply and demand says that when fewer people want something, the price
drops.
To use less gas, President Bush encouraged Americans to drive a little less. He also told government agencies
to use less energy. He asked government workers to take public transportation to work rather than drive their own cars.
Increasing the Supply of Gas
Leaders in Congress have already begun to figure out ways to increase the supply of gas in the U.S. so that
gas prices can return to normal. Some of their proposals include building more oil refineries (where oil is treated), allowing
states to increase oil drilling on their coasts, and allowing for drilling in the Arctic National Wildlife Refuge.
All of these proposals are controversial because of the impact that oil production and drilling has on the
environment. Environmentalists say that none of these proposals will help the gas price crisis.
"It is kind of sad," said Kevin Curtis, of the National Environmental Trust. "There is nothing here that helps
the consumer at the gas pump in the short term." |
Gas prices inch higher
First increase in several weeks; could rise further as higher crude prices make their way to
the pump.
February 11 2007: 6:31 PM EST
NEW YORK (Reuters) -- The average price of a gallon of gasoline rose slightly over the past
three weeks and could push higher because the rise in the price of crude oil has not yet been passed on to consumers, an industry
analyst said on Sunday.
The national average price for self-serve, regular unleaded gasoline was $2.2209 per gallon
on Feb. 9, up 3.63 cents from Jan. 19, according to the nationwide Lundberg survey of about 9,000 gas stations.
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Energy watch |
|
With record profits, some investors believe dividend boosts are in order. But experts say managers
at the majors are making the prudent choice in holding back. (more)
Russia plays hardball
Following a recent spat with Belarus, other nations may fear the strong stance of the world's
second-largest oil exporter. (more)
Go green. Get rich.
Think humanity's problems are too big to be tackled by business? Think again. Here are nine
companies showing how we can make millions saving us from ourselves.
Why oil falls but not gas
The short answer: Service stations do it because they can. But the really big bucks are being
made elsewhere. |
Oil tumbles below $58
Crude prices fall more than $2 after OPEC ministers indicate that the cartel
does not plan to curb output at its March meeting.
February 12 2007: 3:52 PM EST
LONDON (Reuters) -- Oil dropped more than $2 to below $58 on Monday after leading exporter Saudi
Arabia, fellow OPEC member Qatar and OPEC's head of research said the organization may steer away from further supply cuts
at its March 15 meeting.
U.S. crude slid $2.08, or nearly 3.5 percent, to settle at $57.81 a barrel on the New York Mercantile
Exchange.
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| The CEO of
Shell talks with CNN's Jim Boulden about the impact Nigeria has on world oil markets. (February 1) |
Play video
| | |
Saudi Oil Minister Ali al-Naimi, OPEC's most influential voice, said in an interview with The
Wall Street Journal the oil market was in "much, much better health and balance."
"If you are asking me are we going to make additional cuts or increase supply I do not know....
But, most probably if the trend is like it is today with the market getting in much, much better balance, there may not be
any reason to change," he said.
Naimi's remarks were consistent with comments he made on Jan. 16, when oil was nearer $51. The
Saudi view won immediate backing Monday from Qatari Oil Minister Abdullah al-Attiyah.
"I agree 100 percent," he told reporters. "I am confident OPEC will not change [production]....
Below $50 is not good for producers and higher than $60 is not good for consumers."
OPEC ministers from Kuwait, Algeria and Nigeria have lined up in recent days to say that, barring
unforeseen developments, there was no need for further OPEC supply reductions.
The group has already cut 1.7 million barrels per day - 6 percent of OPEC supplies - in two
stages on Nov. 1 and Feb. 1.
The curbs and recent onset of cold weather in the world's top consumer, the United States, have
lifted oil back toward $60 from a 20-month low of less than $50 in mid-January.
Some investors had expected OPEC to trim production again on March 15 to counter weaker demand
in the second quarter as the Northern Hemisphere winter ends.
"Now [Naimi] has suggested that OPEC might not cut production, investors believe the market
will be strongly oversupplied again in the second quarter," said Dariusz Kowalczyk, chief strategist at CFC Seymour Ltd.
OPEC's research head Hasan Qabazard told reporters at a London conference he saw potential for
a normal 300,000-400,000 barrels per day stock build in the second quarter.
"With the market going the way it is, I don't think that we need to cut," he said.
Supporting influences
Iran's standoff with the United Nations over its nuclear program remained a supporting pressure.
Anxiety over Iranian oil supplies resurfaced last week ahead of a Feb. 21 deadline to halt uranium
enrichment, after which it could face further United Nations measures.
Cold weather in the United States also helped to stem any losses. Temperatures in the northeastern
United States were expected to average a maximum of 18 degrees Fahrenheit below normal for the next six to 10 days, forecasters
said.
Stocks of oil majors, including BP (down $0.72 to $62.18, Charts), ExxonMobil (down $0.57 to $74.65, Charts), ConocoPhillips (down $1.09 to $65.90, Charts), Chevron (down $1.03 to $72.29, Charts) and Royal Dutch Shell (down $0.28 to $66.25, Charts), have mirrored oil prices recently, with the AMEX oil and gas index down 2.5 percent so far this
year.
Technical analysts, who study past price movements to predict future trends, noted oil's repeated
failure to break convincingly above the psychologically important $60 level.
"Technically, our charts show that the crude advance has stalled for the time being, but what
has struck us about the recent advance, is just how much skepticism has greeted this particular move higher," said Edward
Meir at Man Energy.
Latest data from the U.S. Commodity Futures Trading Commission on Friday showed that speculative
investors had increased their net short positions for crude oil.
Some analysts have interpreted the numbers as a sign big funds are reducing their exposure to
energy. Others say speculators are betting prices will fall in the near term.
"Length liquidation has prevented a significant break of $60 but the data does not show a strong
commitment to the downside," argued Petromatrix analyst Olivier Jakob.
"The risk now is that the weak length has gone out of the market and will not represent anymore
the same resistance force on attempts to go higher."
Barclays Capital analysts said oil trade figures for the world's second-biggest consumer, China,
released overnight suggested strong demand had continued in January.
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