By Jake Nevermann
As everyone scrambles to create their New Year’s resolutions, everyone is thinking about the changes to come in 2014. One thing that is on everyone’s minds is what prices are going to be seen at the pump. Will the price of gas rise? Or will it drop? How much are we going to have to pay for a gallon? These are all questions that concern Americans who consumed over 100 billion gallons of gas in 2013 making the United States the largest consumer of oil in the world by a large margin. But what does 2014 have in store for us?
Gasoline is at the base of nearly all transportation in America, and seeing expensive gas prices at the pump has a very negative impact on the everyday life of Americans. In 2013, the price for gas ranked as the third most expensive year for gasoline prices in U.S history. At an average of $3.49 per gallon, gas didn’t seem cheap at all, but in reality, last year’s per-gallon average was the cheapest since 2010. Average gas prices in 2011 rose just above $3.50 while the national average saw $3.60 per gallon in 2012.
Picture URL: http://newsroom.aaa.com/wp-content/uploads/2013/12/National-Average-Gas-Price-Conparison-2011-2013-12.30.13.jpg
Thankfully, the declining gas prices will continue on in 2014. In fact, the national average for 2014 is estimated to be just under $3.40 per gallon. This lower price can predominately be related to the increase of domestic oil production, and the federal policy in action that prohibits the export of oil. (Here is a link to a website with an article against the ban on crude oil exports.)
http://www.cfr.org/oil/case-allowing-us-crude-oil-exports/p31005
Gasbuddy.com estimates that Americans will continue to see a moderate drop in the average price per gallon in the close years to come, while others oppose saying the price of gas will rise. However, nevertheless, as technology advances the future of transportation looks bright.
With tightening fuel economy standards, new and advanced technology, and a shift in consumer preferences; fuel efficient cars are steadily improving and are being manufactured along with hybrid and electric models. What does this mean for America? It means that the individual demand for gasoline is going to decline, and Americans will be getting more for their dollar spent on gas by driving better mpg cars.
In other recent news, American oil production is predicted to steadily increase. The International Energy Agency, for example predicted that the United States will continue moving “steadily toward meeting all of its energy needs from domestic resources by 2035”. But by that time who knows what oil production will look like. For instance, due to global warming and the drastic melting of glaciers, the Arctic is now receiving interest in the exploration of natural resources. The lack of technology is the only thing holding drilling back.
Even though the national average price per gallon of gasoline is estimated to be just under $3.40, it is hard to predict what prices Wisconsin drivers will see. So here are some helpful tips on conserving gas and saving money in 2014:
Drive conservatively
Carpool
Choose a more efficient vehicle
Do not accelerate or brake hard
Keep tires properly inflated
I agree with you that the more technology advances the less inelastic gasoline will become because there will be alternates to take gasoline’s place. This will be interesting to see how it affects the price of gas. I found the chart interesting as well because it shows that in the summer gas prices are, on average, lower than the other months. I would think that in summer gas would be more expensive because gas company’s can predict that people will drive more, so there is more of a demand.
ReplyDeleteThis was really interesting, yet I feel like the scarcity of gasoline is going to be crucial in determining the price. If gas reaches a very scarce level the price is going to have to raise drastically. If new technology does improve drilling though it would be interesting to see if the price would decline. With gas being a necessity at the moment, no matter what the price is the consumer will have to buy it.
ReplyDeleteThis is a very relevant topic due to the increasing prices of gas; however, I believe that with the invention of new technology, gas prices will go down due to the raised competition for a fuel source. New areas to obtain gas will also be discovered increasing the supply of gas, which will in turn bring down the cost. As of right now though, gas is a necessity that everyone must have and is a product that cannot be taken out of a person's budget.
ReplyDeleteI found this really intriguing. I agree with Amanda on the factor of scarcity on gasoline. The price is continuing to rise because of it, and consumers will continue to buy gasoline because it is an almost perfectly inelastic product. I believe that the price of gasoline will slowly continue to rise over the following years if we do not find a new drilling technology or replacement product.
ReplyDeleteHopefully gas prices will drop, but most likely they will never get under $3. If they were to create a new technology that were to extract more oil or dig deeper that would be great because then we could find out how much oil is there really is. I do agree with your tips by the way and they are efficient to save money.
ReplyDeleteThis was really interesting, and you made some really valid points. I especially liked your comments and in depth analysis on the price trends of gasoline, and how it affects average americans. You clearly put a lot of effort into this. You also helped to enlighten as to ways to avoid buying gasoline, which--curiously enough-- (if done on a mass scale) would actually lower the prices of oil even further WHILE aiding the environment and slowing the depletion of fossil fuels. You made some really solid points, and if more people had this information, I believe it could do a lot of good for a world obsessed with material things and the cheapest easiest way to access said materials. Good job!
ReplyDeleteIt would be nice for gas prices to go down this year; however, gas is a major one of America's consumed goods. This is why I am still skeptical about gas prices averaging less for this new year. Even though technology is increasing to reduce our gas consumption, our world supply of oil is constantly decreasing. As this product continually decreases in quantity the price will keep driving up until we find a way of transportation that is efficient enough.
ReplyDeleteEven though the prices are dropping, I feel like they are still really high. I mean come on, I can't even remember when prices used to be 40 cents and people would complain. $0 cents nowadays would be a complete blessing. I'm actually really surprised that we haven't come up with a way to make cars even more efficient or found a way to replace gasoline. With all of the technology that we have, we should have come up with at least one other alternative.
ReplyDeleteThis topic is really relatable because many of us are just starting to get our own cars and we often have to pay for our own gas. Paying for our own gas has made many of us realize just how expensive it really is. The graph that you chose shows a really good outlook because as each year occurs the gas prices go down, which hopefully means in the future they will continue to decrease.
ReplyDeleteIt's good to see gas prices going down because many teenagers have to pay for their own gas which is hard to afford. From personal experience I always thought gas prices rose in the summer due to more people travelling, but according to your chart that is when they are the lowest. I don't know why this is but I guess it's a good thing. Nice topic
ReplyDeleteIt is really weird how the price of gas tend to fallow the same trends every year. Also there really isn't that much of a worry about gas because there are alternative energy sources. These sources just aren't as practical as gas. It is really weird how prices raise mostly during February to March. Nice topic
ReplyDeleteI think it is crazy how much gas is because of just inflation. It is really crazy! I mean when you think about it back in the day gas and oil was under $1. It just goes to show that with the evolution of the world so has the price of everything. Which makes it seem like gas should actually be going up and up or is it because finally inflation isn't taking its major tole on everything in the world which would be a great thing!
ReplyDeleteI really thought you had some good and valid points. It's nice to see a decline in the price of gas prices, as it's for most people is a necessity. You also have to account for inflation, and if money is becoming worth less and a price of something is still dropping, then were talking about a serious change in price.
ReplyDeleteThis topic of gas prices really hits home in that so many of us are driving and paying for our own gas. The best news most people could receive is that gas prices are finally going down. It also makes sense that gas prices are often high because it is in limited supply. The real reason to blame for high gas prices is inflation. If inflation could go down in the next ten years, imagine the gas prices we will have!
ReplyDeleteGas prices have been a really big topic for years, and it's great news to hear that the gas prices will start declining throughout the year of 2014. Although most people go around on their day to day lives worrying about the high gas prices, this will soon not be an issue during 2014. Throughout your blog you had great information and a graph that provided more information about the topic. Inflation is one of the highest reasons for the high gas prices and throughout the next couple years hopefully the gas prices will decline further.
ReplyDeleteThis is a great topic because all of us teens are now driving cars and we have to pay for our own gas. It is almost getting to be affordable for those who do not have steady jobs. In the future the electric cars are going to come in handy when gas prices reach the point where we can no longer afford it.
ReplyDeleteIt's nice to think that gas prices would be going down, but you truly never know. I never really paid for gas considering I waited until I turned 18 to get my license but now its a thing I have to deal with. This could be the best news that people could receive. Gas prices are higher due to limited supply and inflation. If this goes down some we could have some very low gas prices, hopefully. This is a very close topic for many people because most people drive themselves and pay for their own gas. Hopefully these prices can go down in the near future!
ReplyDeleteThis was very intriguing. Although gas prices may fluctuate and may even rise dramatically, Americans depend on gas and will continue to purchase it because it has become a necessity in our lives. I also agree that our country is technology based and knowing that I have confidence we will come up with alternatives to still have our own car without having to purchase the expensive gas all of the time such as the demand of electric and hybrid cars that you mentioned.
ReplyDeleteI enjoyed reading this article, as a driver myself and having to pay for gas it's a relief to hear that gas prices are looking to go down in the near future. All the money I make is always saved for gas money so as the prices hopefully go down, that will give me a chance to save more money and that really excites me. I think it's interesting and how amazing technology has come and how they are able to make hybrid cars, the only downfall to that is even though they are going to save a lot of money I'm sure they cost a lot of money too. So even though you're benefiting from not having to pay for gas or not as much you still are going to have to pay for a new car and not many people have money like that laying around. It will help in the long run but the short term factor of having to spend that money could be a problem. Overall this was a very good topic because it relates to many people, and I'm thrilled to hear gas prices are going down in 2014.
ReplyDeleteI never would have thought that the price of gas would go on such a decline. You brought up a good point in that we all think that this year's gas was expensive without considering the price of it in years past. It is interesting that since technology has increased, it will decrease the demand for gasoline. Nearly everyone needs to worry about gas prices since most people drive everywhere, so this is a great topic to consider and discuss.
ReplyDeleteThis was a very good topic to choose because almost all high school students can relate due to the fact that most have to pay for their own gas. Hearing that price gases are predicted to decrease this year is extremely reassuring. It's crazy to think that gas prices have once been under one dollar and now they have increased to over three. With gas prices going down and more fuel efficient cars being manufactured, the future seems bright with many positive changes!
ReplyDeleteYour post is encouraging, predicting that gas prices should decrease a bit in the coming year. However, it would have been nice if your elaborated more as to why the cost will fall. Domestic oil production, yes, but what else? Otherwise, the graph you chose is extremely helpful and readable!
ReplyDeleteBecause finding oil resources is a concern, it is surprising to hear that gas prices are declining. As much as a relief that is to me directly, in the grand scheme of things, I feel the government shouldn't decrease the price of gas. With high gas prices, people will drive less, use alternate forms of transportation, such as biking or walking, or carpool because they won't want to pay so much for gas. This will help save our oil resources which are quickly dwindling and also promote a healthier environment with little pollution. Instead of decreasing gas prices, the government should invest the money they earn from exports in research for renewable sources of energy. With a renewable energy source, everyone will be able to pay a lot less for transportation. If America finds this renewable energy source, all other countries will want it as well, resulting in a very wealthy America.
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