A Drive Back to the '70s
While the Energy Secretary says it's a good bet that motorists may see "considerably lower" gas prices this summer than what they were hit with a year ago, globalization specialists caution that conflict in the Middle East could disrupt supplies and drive up prices. Since last fall, gas prices have risen 20-30 cents per gallon for what experts call a "fear premium".
Energy ministers from the world's richest nations met at a conference in Michigan last month and discusses the price of Gasoline at length. Based on many of the issues raised, the U.S. Energy Department plans to initiate steps to overcome the nation's dependence on Middle Eastern resources. To ensure a more reliable supply, the U.S. needs to set the wheels in motion for more domestically produced crude oil and more refining capacity.
Gas prices tent to rise in summer, because refiners must produce multiple fuel blends to comply with local air quality standards. And, during peak demand, such as the summer travel season, but that many problems lie in the strict environmental regulations, which stand in the way of building new refineries.
