For most Americans, energy policy right now is all about gasoline prices. And given the political claims and counterclaims on this issue being tossed about, it’s no wonder that the public is both skeptical and confused. So how can the average American, already feeling the impact of higher prices, filter through the nonsense and noise?
Earlier this year, closures of refineries announced in the United States and elsewhere began pushing up gasoline prices well in advance of the coming “driving season.”
The single largest component in the price of gasoline is the cost of crude oil. All things being equal, for gas to cost $2.50 a gallon, the crude oil price would have to be in the $50-a-barrel range (less than half of the current price). And to achieve this anytime soon would likely require a global economic collapse. Be careful what you wish for.