Tuesday, May 13, 2008

Chosen Topic Research #4- Gas Prices Rising

The cost of gasoline and oil has been on a high rise, as the prices to drive a typical car have become very costly with the gas prices; these high prices also contribute to fears of an economic recession. Commentators have attributed the price increases of this period to a variety of factors, including reports from the U.S. Department of Energy and others showing a decline in petroleum reserves, worries over peak oil, Middle East tension, and oil price speculation.

Gas prices rose to a new record over $3.73 a gallon recently, and they only seem to rise more. Prices have now risen to the level at which the Energy Department forecasts they’ll peak in June, on a monthly average basis; that means prices may still go higher, but their average will peak at around $3.73. More information on current prices of oil and gas can be found here: http://www.msnbc.msn.com/id/12400801/

With gas prices rising, drivers everywhere feel the effects in their wallets. Stations are also affected, as some cannot even provide gas due to the high prices. An article about this specfically continues here: http://www.charlottesvillenewsplex.tv/home/headlines/16361531.html#

The rising cost is forcing a change in driving habits; a large percentage of people end up needing to limit their driving due to the gas prices, and many go and buy more more fuel-efficient cars. Statistical information and more on changing driving habits can be found in this article: http://usnews.rankingsandreviews.com/cars-trucks/daily-news/080310-120216/

I think that with these prices, in a way, they could be more beneficial in that there could be less use of cars in a car-obesessed world. This could also be beneficial to the environment. The bad side is what could be happenning to the economy.

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