World News and Trends: Why the Rise in Gas Prices?
Why has gasoline (petrol in many other countries) suddenly become so expensive?
Many Americans have been shocked to see gas prices recently shoot up to over $2 a gallon. And while this is cheaper than in many other countries (due to their heavier taxation), it's still a shock to U.S. consumers. But why has gasoline (petrol in many other countries) suddenly become so expensive?
Experts note that a combination of factors, revolving around supply and demand, have led to higher oil prices.
One cause is increased competition for fuel. China, India and other developing countries are consuming far more oil and gasoline than they did only a few years ago, increasing demand for a limited worldwide supply. Another factor is unrest in the Middle East, with Iraq struggling to increase production in the face of repeated terror attacks against its oil-production infrastructure.
We also cannot ignore the effect of government actions on oil prices. The Russian government recently in effect took over the huge private oil company Yukos, Russia's largest oil producer, hitting it with a $7 billion tax bill and sending up oil prices worldwide. The company's assets will likely be swallowed up by a new state-owned company.
In the United States, various environmental laws dictate more than a dozen different gasoline blends in three different grades. Producing those blends drives up consumer costs. Also, due to various regulations and challenges, newer, more efficient oil refineries haven't been built in the United States for more than 25 years. Legal and political challenges have also held up development of new fields to replace declining output in older, less productive fields, making Americans increasingly more dependent on volatile overseas supplies.
Another recent factor has been the repeated hurricanes striking the Gulf of Mexico, which has put a serious dent in U.S. production from offshore oil fields. Seasonal weather can also play a role, depending on how cold the coming winter is and how much oil will then go to heating homes.
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Jerold Aust
Jerold Aust has served in the ministry for 52 years, as a public speaker for 58 years, a published writer for 38 years, and is employed by UCG’s Media and Communications Services. He is a Senior Writer, interviewer, and editor for Beyond Today Magazine and has taught Speech Communication for UCG’s ministerial online program and the Book of Revelation for ABC.
Jerold holds a BA in theology from Ambassador College, Pasadena (1968), an MA in Communication from California State University, Fullerton (1995), a distance-learning Ph.D (2006), and a Famous Writers School diploma in non-fiction writing (1973). Additionally, he studied post-grad communication at University of Southern California (1995), radio, TV, voice-overs, and Public Relations at Fullerton College (1995-1996), and graduate communication at Wichita State University (1978). Jerold has taught communication at the University of South Alabama (7 years) and ABC (17 years). His published works include, Ronald Reagan’s Rhetoric: Metaphor as Persuasion and EZSpeakers: Public Speaking Made Easy in 7 Steps. Jerold's overarching goal is to share with humankind its incredible destiny!
John Ross Schroeder
John died on March 8, 2014, in Oxford, England, four days after suffering cardiac arrest while returning home from a press event in London. John was 77 and still going strong.
Some of John's work for The Good News appeared under his byline, but much didn't. He wrote more than a thousand articles over the years, but also wrote the Questions and Answers section of the magazine, compiled our Letters From Our Readers, and wrote many of the items in the Current Events and Trends section. He also contributed greatly to a number of our study guides and Bible Study Course lessons. His writing has touched the lives of literally millions of people over the years.
John traveled widely over the years as an accredited journalist, especially in Europe. His knowledge of European and Middle East history added a great deal to his articles on history and Bible prophecy.
In his later years he also pastored congregations in Northern Ireland and East Sussex, and that experience added another dimension to his writing. He and his wife Jan were an effective team in our British Isles office near their home.
John was a humble servant who dedicated his life to sharing the gospel—the good news—of Jesus Christ and the Kingdom of God to all the world, and his work was known to readers in nearly every country of the world.
