Nationwide fuel price increases with possible power crisis on horizon

The national average gas price is all however certain to hit $4 a gallon by summer. Unrest in Libya, a serious oil exporting country, has brought on the price of petroleum to rise, which is creating the cost of gasoline to rise as well. The oil reserves held by the America government might be utilized by the Obama administration should the sector prove inept at curbing rampant panic. Resource for this article – Gas price rises nationwide fueling speculation of energy crisis by MoneyBlogNewz.

Government considering use of emergency reserves

Continuing turmoil in Libya brought oil exports in that country to a standstill, leading to a spike in oil costs. CNN stated that on Monday, March 7, the typical gas prices were at $3.51 a gallon which might get to $4 a gallon by summer time. Prices have been increasing daily for the past two weeks, increasing by 34 cents over that time. Keeping these costs down is a goal that the Obama administration has, reports Reuters. The government as considered tapping into the U.S. Strategic Petroleum Reserve to stop the costs from continuing upward. About 730 million barrels of crude oil are found in the Reserve which is equal to a month of U.S. oil supply. All officials in the administration suggest this will not occur unless it’s absolutely necessary. The reserves won't be used anytime soon. The last release from the reserves was in 2005, after the Hurricane Katrina catastrophe, and it has only been used three times since it was established during the Nixon administra! tion.

Increase in costs

The Libya unrest caused many to be worried about the world oil industry. The supply has not dropped at all though. Libya produces less than 2 million barrels per day, and exports little oil to the United States. Over 12 million a day is produced in Saudi Arabia. The Department of Energy made this comparison. A 25 % increase in oil production was changed in Saudi; this more than makes up for Libya losses. The rise of fuel costs isn’t due to a shortage in supply; rather, markets are uneasy because political turmoil is spreading to other oil exporting nations. A revolt in Libya isn’t catastrophic in terms of world oil exports, but revolts in Saudi Arabia would be.

Gasbuddy can help

The website Gasbuddy.com will help people find the cheapest gasoline in their area. Several websites are used for individuals to report fuel prices. Gasbuddy puts all these together. The Gasbuddy network extends from coast to coast, so there are few places in the United States or Canada that do not have some information posted. There’s even a Gasbuddy app available for iPhone, Android and Windows smartphones. Since Gasbuddy relies on people reporting the gasoline costs they see, the site is fast becoming a resource that is quoted by major news agencies also as a valuable tool for customers.

Citations

CNN

money.cnn.com/2011/03/07/news/economy/gas_prices/

Reuters

reuters.com/article/2011/03/07/us-usa-oil-idUSTRE7252X520110307?pageNumber=1

Department of Energy

eia.doe.gov/cabs/newint.html

Gasbuddy

gasbuddy.com/