why is gas prices higher now compared to when oil was over $140 a barrell?
oil is now today 87 a barrell, and gas is higher now than when oil was over 140 a barrell. anyone know why
- Anonymous9 years agoFavorite Answer
Companies are charging you more?
While they buy it for less...the rich just keep getting richer don't they.
- 9 years ago
I was wondering the same thing. As of this moment it seems to be refining capacity problems and global instability. Plus, the "summer driving season" boosts demand for fuel.
But, the root problem is ancient geology and bell-curve oil well depletion. U.S. oil production peaked in 1970 but you never hear that mentioned directly in policy speeches. Nor do you hear gas price conspiracy-theorists discuss the basic concept of EROEI, and how the easy oil is mostly gone. Shale, for example, has very poor EROEI, especially the kerogen type, which makes up the bulk of U.S. deposits. People who equate shale with free-flowing oil are insane.
As economist Jeff Rubin puts it: We're not running out of oil, we're running out of the oil we can AFFORD TO BURN. That's a key concept many people don't get. Oil doesn't come out of the ground in a linear manner. Flow rates decline and it gets more costly to extract. The apex of easy oil for a given well, region or planet is called the "peak."
- KiniLv 79 years ago
In the current situation, the crude oil price does not have anything to do with retail gasoline prices.