http___www.bigleaguekickball.com_category_press_ fedex soma overnight According to the latest Lundberg Survey of cities in the continental United States, gasoline prices have risen 82 cents since September 2010. Ouch! That is a more than 25 percent increase over a six month period.
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So what is driving this dramatic increase? Unlike the 2005 crisis, which was driven by damages from Hurricane Katrina, today’s prices are driven by fear.
The reality is that only 3 percent of Libyan oil makes its way to the United States. However according to the US Energy Information Administration (EIA), Libya is #17 on the list of Top World Oil Producers. The United States is currently #3 behind Russia and Saudi Arabia; with Canada at #6.
However, Libya does have the largest proven oil reserves in Africa, and most analysts agree that the country is still under-explored. According to CNN, what most analysts and forecasters are concerned about is the ripple-effect created by disrupting the supply.
“Libya produces a light, high-gravity crude oil that is most in demand by less complex refineries around the world … As this oil becomes unavailable, it forces buyers of crude to substitute crude with similar properties from other oil producers, thereby increasing demand and starting a chain reaction that raises prices of crude and gasoline in the United States.”
While the global economy brings many positive aspects, it is the negative affect a small country can have on our economy is disconcerting. Certainly there is only so much we can do, but with the energy as one of the engines that runs our economy, we should make sure that its pricing is buffered from things outside of our control. When will our elected officials step to plate on this issue?
