Thursday, October 05, 2006

Why Is Gas So Cheap?

Why is gasoline so cheap? Is it because elections are right around the corner or is it because of economics with supply and demand. According to Energy Industry Today the reason that gas prices are so low is because Repulicans want help in the polls this upcoming November. Others think that it is because the demand is down and more people are focusing on ethanol instead of gasoline. Something seems fishy to me.

5 comments:

WhitMill said...

Another reason that gas prices are going down is that the oil companies know that if they are up for two long people with start demanding another option. They know that they have to give up some of their record profits if they want to stay in business. Politics can play a role, but not as much as people think that it can.

Drew said...

I would like to see a shift away from our dependence on oil and start to focus on other resources such as ethanol. The truth is the Republicans in the white house do have connections with the oil companies and they want us to rely on oil. I believe politics is playing a role in the price of gas.

sam20walz said...

It is very comforting to see that the price of gas is getting back down to a reasonable price. Hopefully this is not just due to election, but yet due to a surplus in gas. If this is true about the elction being the reason for low prices, than hopefully the focuse on alternative energy will grow even larger.

Nick Springer said...

It would be nice if the drop in price was because of switching to ethanol, but I do not think so. If that were true, I would stick with gasoline as the price went down. I think that it is because of the election coming up. I do not think that it is right for them to be able to drop the prices by that much, because they still have to be making a profit. If they can be this low and still have a profit, they should be this low all of the time. Whatever the reason for the drop in price is, I hope that it will still be down in four years when I actually use gas.

brennan said...

No complaints here, as long is gas around 2 dollars I'm not asking too many questions and the elections being the reason might just be another Democratic conspiracy theory that never pans out...