Here are some of the reasons why gas will continue to increase in price.

Why are gasoline prices so high?
Source: US Department of Energy

Even before the storm, gasoline and diesel prices were high as a result of tight crude oil supplies and increased global demand for transportation fuels.

•OPEC production decisions will continue to influence the oil market situation.

•Low surplus production capacity of 2 to 3 million barrels per day, concentrated in Saudi Arabia, weakens the market’s ability to respond to supply disruptions.

•Oil prices likely to remain high at least through 2009. •Many uncertainties could alter the outlook and create volatility in global oil markets.

Why are Prices Getting So High?

•Production increases are expected in both OPEC and non-OPEC countries –Nigeria, Angola, and Saudi Arabia –Azerbaijan, Brazil, Kazakhstan, and U.S. Gulf of Mexico

•The high oil price environment of the past several years has provided sufficient incentives to spur increased growth in unconventional supplies

–Canadian oil sands- Won’t happen at realistic prices.  $75 a barrel just pre profit..

–Brazilian and U.S. biofuels

–Qatar gas-to-liquids

•Significant projected growth in global natural gas liquids

HOWEVER HERE ARE ALL THE THINGS THAT CAN SCREW UP THE ANALYSIS SHOWN!! 

Written by greenlivingguy

The Green Living Guy, Seth Leitman is a green living expert, celebrity and Editor of the McGraw-Hill, TAB Green Guru Guides. Seth is also an Author, Radio Host, Reporter, Writer and a Environmental Consultant on green living. The Green Living Guy writes about green living, green lighting, the green guru guides and more. Seth's books range from: # Build Your Own Electric Vehicle by Bob Brant and Seth Leitman (2nd and 3rd editions) # Build Your Own Plug-in Hybrid Electric Vehicle by Seth Leitman # Build Your Own Electric Motorcycle by Carl Vogel # Green Lighting by Seth Leitman, Brian Clark Howard and Bill Brinsky # Solar Power For Your Home by David Findley # Renewable Energies For Your Home by Russel Gehrke # Do-it-Yourself Home Energy Audits by David Findley # Build Your Own Small Wind Power System by Brian Clark Howard and Kevin Shea # and more green living books to follow.