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

Once upon a time Americans hopped into their cars on warm spring days and took long drives to admire the beauty of nature. Teenagers took joy rides around town to meet friends and rode from one â€Å"hot spot† to another. Those were the days when gas prices were affordable to the average American. Over the past few years, gas prices in the United States have been on the rise. What is causing the increase in gas prices? To understand the increase in gas prices, one must first identify the distribution of dollars paid per gallon at the pump. According to the U.S. Energy Information Administration (eia) in 2010, the annual average paid at the pump consisted of 68% crude oil, 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 important factor in the rise of gas prices is the increasing cost of crude oil. Unfortunately, the United States has three percent of the world’s oil reserves. (Horsley) In 2009, the United States was third in crude oil production as well as the world’s largest petroleum consumer. (e. I. Administration) Such consumption 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 are 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... ... Oil Production.† 10 March 2011. 19 March 2011 . Press, Associated. â€Å"MSNBC Oil Prices Fall as Libya Promises Ceasefire.† 18 March 2011. 19 March 2011 . Press, Associated. â€Å"Oil Hits Highest Levels Since Recession.† 25 March 2011. 25 March 2011 . Press, The Associated. â€Å"IEA Says Libyan Oil Exports Halted.† 15 March 2011. 25 March 2011 . Reuters. â€Å"Factbox: Libyan Oil Production, Exports, Customers.† 11 February 2011. 20 March 2011 .