Wednesday, May 03, 2006

Why gas is 3$ a gallon

To be said in its simplest form high gasoline prices are a direct reflection of the choices made by human beings in the past. Always knowing the reserves of crude oil would eventually expire evidently wasn't bold enough to make people realize what was going to happen. Which is the high prices that we all experience today. This is simple economics as supply decreases and demand increases then prices have to increase. Along with diminishing supply as a reason of high gas prices is the unstable oil business itself. The gas pump displays the unstable price, because any interruption in the process of refinement or retail dramatically effects market price. Although prices are high now, in the near future prices are expected to drop due to the decrease in demand from the high prices we pay now. So we have some idea of the future events, but will we continue on the same path or find an alternate route to the new energy source. My question is what do you think the next big energy source will be?? And will the government set restrictions on this new energy source early or just let the market stabilize itself??

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