Rising Gas Prices in the United States Essay -- The Oil Industry

Once upon a time Americans hopped into their cars on warm rise days and took long drives to admire the beauty of nature. Teenagers took joy rides around townsfolk to meet friends and rode from one hot spot to another. Those were the days when gas prices were inexpensive to the average American. Over the past few years, gas prices in the linked States have been on the rise. What is causing the change magnitude in gas prices? To catch the increase in gas prices, one must first expose the distribution of dollars paid per gallon at the warmheartedness. According to the U.S. Energy entropy Administration (eia) in 2010, the annual average paid at the pump consisted of 68% unwashed embrocate, 7% refining, 10% distribution and marketing, and 15% taxes (see Fig.1). This shows an increase of crude oil over the 2000-2009 average of 51%. (e. I. Administration)Currently, the most crucial factor in the rise of gas prices is the increasing cost of crude oil. Unfortunately, the U nited States has three percent of the worlds oil reserves. (Horsley) In 2009, the United States was third in crude oil production as well as the worlds largest petroleum consumer. (e. I. Administration) Such custom required and still requires the United States to import petroleum/crude oil from other countries.Mainly, the United States imports petroleum products and crude oil from Canada 23.3%, Venezuela 10.7%, Saudi Arabia 10.4%, Mexico 9.2%, and Nigeria 8.3%. (e. I. Administration) In addition, approximately 77 other countries import to the United States. (e. I. Administration) Worldwide, there atomic number 18 many factors contributing to the increase in cost per barrel. Most recently, Libyan rebels, inspired by the success of their Tunisian and Egyptian neighbors, are up... ... crude Production. 10 walk 2011. 19 March 2011 .Press, Associated. MSNBC Oil Prices Fall as Libya Promises Ceasefire. 18 March 2011. 19 March 2011 .Press, Associated. Oil Hits Highest Levels Since Rec ession. 25 March 2011. 25 March 2011 .Press, The Associated. IEA Says Libyan Oil Exports Halted. 15 March 2011. 25 March 2011 .Reuters. Factbox Libyan Oil Production, Exports, Customers. 11 February 2011. 20 March 2011 .