Gas Prices - Thinking Outside the Jerry Can
The current inflation in the cost of gasoline is a problem for everyone. This increase in the price of oil messes with daily life. Who is to blame?
One reason for the increase comes from the Russo-Ukranian conflict. International sanctions put upon Russia attribute to the rapid inflation. This is no surprise, as Russia is among the top three exporters of oil, only behind Saudi Arabia and the United Arab Emirates, according to Investopedia’s Alexandra Twin. However, much of said oil only makes it to European markets, as the United States looks toward Canada, Mexico, and Saudi Arabia for much of its oil needs. Due to economic sanctions – added in conjunction to ones introduced during Russia’s annexation of Crimea in 2014 – a tight grip is held on the global oil market. If much of the west loses a significant amount of oil from one exporter, it is necessary to look toward another. Europe currently looks toward Saudi Arabia and other OPEC participants to fulfill their need. Considering Saudi Arabia is a big fuel supplier of the US, there comes a smaller supply, and with a smaller supply comes a larger demand.
What can the US do to help combat crises such as this one? Two major routes can be implemented, with both holding several pros and cons. On one side of the coin, the US can continue to develop pipelines like Keystone and to fund research into finding areas with natural gas, oil, and other nonrenewable resources. On the other hand, large projects such as improved public transportation push toward renewable resources. Between the two, the former is a far cheaper possibility that will yield fast results and immediate gratification for many and will appease the mob (if the resources stretch out). There is no doubt that such large-scale projects will end up costing a heavy amount for the government.
Regardless of what people may view as a solution, it is essential to understand the problem and what exactly may cause it. The path to improvement first starts with acknowledgement.
