Quote:
Originally Posted by Love2Swim
According to the experts, there are three factors at play:
1. Post Pandemic demand. During the pandemic people sheltered at home so the typical driver cut their demand for gas in half. That sharp decline caused gas prices to plummet to a low of $1.94/gallon in April 2020.
2. Cuts to Oil Production. As the global economy recovered from the pandemic, OPEC was slow to ramp up production. The demand was far higher than the supply, causing higher prices.
3. War on Ukraine and global sanctions make it difficult for Russian oil to flow to the global market causing a 20% spike in oil and gas prices in just weeks.
Experts say oil and gas drilling in the US has increased but companies in the U.S. are constrained by tight supplies of rigs, trucks and labor that they need to supply more oil.
Even so, when adjusted for inflation, today's fuel prices are still below their peak in 2008.
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The conspiracies about the Keystone pipeline also play RIGHT into the hands of the oil companies, who are the only one who stand to benefit when the masses believe that the conspiracies are true.
Facts: the oil is still getting here, same as it always has. Nothing has changed in that regard. Not a single thing. There is no shortage coming from Keystone. At all. Zilch.
2. The pipeline being complained about would not be built until NEXT YEAR even if it was approved 100% and construction had begun on it last year. So it would have ZERO impact - zilch, nada, on TODAY's gas prices.
3. The main petroleum companies in the world have published record profits for 2020, before the price spikes began. They're not hurting for distribution. They're putting a choke-hold on it because it is in their best financial interest to do so. The rich folks running the show can afford $6/gallon gas, especially when they're earning several million dollars every year in profits.
Summary: Gas prices are going up because oil companies have CHOSEN to jack up the prices. It's as simple as that.