Featured Research

from universities, journals, and other organizations

Continuing Upward Pressure On Retail Gasoline Prices Expected

Date:
May 22, 2008
Source:
Rice University
Summary:
With the price of a barrel of oil hovering around $120, US drivers can expect to pay more at the pump in the near future, according to a new study.

With the price of a barrel of oil hovering around $120, U.S. drivers can expect to pay more at the pump in the near future, according to a new study by Rice University's Baker Institute for Public Policy.

"There is room for retail gasoline prices to move up," said Kenneth Medlock III, a Baker Institute fellow in energy studies and one of the study's authors. While Medlock cautioned that seasonal variability and other factors could affect prices in the near term, he said gasoline could easily reach $4.20/gallon around the Memorial Day holiday, especially if demand spikes as it normally does.

The study, titled "U.S. Energy Policy and Transportation," is part of a series of working papers on "The Global Energy Market: Comprehensive Strategies to Meet Geopolitical and Financial Risks." It was co-authored by Medlock and Amy Myers Jaffe, the Wallace S. Wilson Fellow in Energy Studies at the Baker Institute.

"In the short term," the study found, "temporary demand and supply factors can cause gasoline prices to rise substantially. Given the shortage in refinery capacity in the United States, these short-run departures have been growing larger and more frequent. Demand has grown steadily, but U.S. refinery capacity has not kept pace. Thus, the U.S. market has become increasingly dependent on foreign gasoline imports. At the same time, growing demand elsewhere in the world means increased competition for gasoline, which, in turn, drives up the price to attract imports during high U.S. demand periods."

However, the study also warned against blaming the growing demand in other countries for the high fuel prices in the United States. "Many have pointed to growing demand in Asia as the culprit for higher prices," according to the study, "but the United States consumes 33 percent of the world’s road transportation fuel and demand continues to grow. Thus, as American demand goes, so goes the world price of oil."

The only way to address high energy prices over the long term, the study's authors argued, is to curb U.S. demand growth. They call for "a combination of conservation, higher fuel efficiency, alternative fuels and greater domestic production capacity" to achieve "manageable and acceptable" gasoline prices in the future.

The study may be viewed at http://www.rice.edu/nationalmedia/multimedia/gasprice-transportation.pdf.


Story Source:

The above story is based on materials provided by Rice University. Note: Materials may be edited for content and length.


Cite This Page:

Rice University. "Continuing Upward Pressure On Retail Gasoline Prices Expected." ScienceDaily. ScienceDaily, 22 May 2008. <www.sciencedaily.com/releases/2008/05/080521150645.htm>.
Rice University. (2008, May 22). Continuing Upward Pressure On Retail Gasoline Prices Expected. ScienceDaily. Retrieved July 30, 2014 from www.sciencedaily.com/releases/2008/05/080521150645.htm
Rice University. "Continuing Upward Pressure On Retail Gasoline Prices Expected." ScienceDaily. www.sciencedaily.com/releases/2008/05/080521150645.htm (accessed July 30, 2014).

Share This




More Matter & Energy News

Wednesday, July 30, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Britain Testing Driverless Cars on Roadways

Britain Testing Driverless Cars on Roadways

AP (July 30, 2014) British officials said on Wednesday that driverless cars will be tested on roads in as many as three cities in a trial program set to begin in January. Officials said the tests will last up to three years. (July 30) Video provided by AP
Powered by NewsLook.com
China's Drone King Says the Revolution Depends on Regulators

China's Drone King Says the Revolution Depends on Regulators

Reuters - Business Video Online (July 30, 2014) Comparing his current crop of drones to early personal computers, DJI founder Frank Wang says the industry is poised for a growth surge - assuming regulators in more markets clear it for takeoff. Jon Gordon reports. Video provided by Reuters
Powered by NewsLook.com
3Doodler Bring 3-D Printing to Your Hand

3Doodler Bring 3-D Printing to Your Hand

AP (July 30, 2014) 3-D printing is a cool technology, but it's not exactly a hands-on way to make things. Enter the 3Doodler: the pen that turns you into the 3-D printer. AP technology writer Peter Svensson takes a closer look. (July 30) Video provided by AP
Powered by NewsLook.com
Climate Change Could Cost Billions, According To White House

Climate Change Could Cost Billions, According To White House

Newsy (July 29, 2014) A report from the White House warns not curbing greenhouse gas emissions could cost the U.S. billions. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins