The majority of the country is concerned by rising gasoline prices in today's economy.
According to the American Automobile Association the national average of retail gasoline is priced at $3.51 a gallon. Gas prices may reach $4 per gallon by May of 2012.
There is a small measure of comfort in the fact that when measured on an inflation-adjusted basis, the current price of gasoline is only slightly higher than it was in 1922. According to the Energy Information Administration, in 1922, gasoline cost the current-day equivalent of $3.11.Today in 2012 per the EIA, gasoline is selling for about $3.77 per gallon, only about 20 percent more than 86 years ago. In 1922, the pre-tax cost per gallon was nearly 25 cents - equal to about $3 today.
Working at a federal law enforcement agency during the October 1973 oil crisis was a very troubled period of time in the United States. An oil embargo was declared by members of the Organization of Arabian Petroleum Exporting Countries or OAPEC whch consisted of Arab members of OPEC, plus Egypt, Syria and Tunisia . This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. The embargo was in effect until March 1974.There was suddenly an unpredicted interruption of the world's supply of petroleum and the United States felt the impact from coast to coast.
The result was crazy with citizens no longer able to drive their cars, many waited for an hour or more at gasoline stations in lines that at times stretched for miles. Tempers and anger at the pumps was commonplace. Motorists could only buy gas on alternate days, depending upon whether their license plate ended with an odd or even number. Gas-pump rage was nationwide.
First responders, police, emergency services vehicles were alloted the minimum amount of gasoline to accomplish 911 calls. Police Patrol duties were on foot when many squad cars were parked and out of gas. On the border, agents were driven by trucks to remote assigned locations and dropped off with a radio and a canteen. U.S. reserve petrol storage facilities were safequarded for national security usage and not available to the general populace.
There was no real shortage of petroleum . The U.S. supply line was merely "shut off" from the Mid East OPEC nations. Political panic did not resove the problem.
The federal government even printed gas-rationing coupons during that period of time although they were never used nor issued.
The second oil crisis in the United States occurred during the Iranian Revolution in 1979. The Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979 and the Ayatollah Khomeini soon became the new leader of Iran. Protests severely disrupted the Iranian oil sector, with production curtailed and exports suspended. When oil exports were later resumed under the new regime, they were inconsistent and at a lower volume, which pushed prices up. Saudi Arabia and other OPEC nations, under the presidency of Dr. Mana Alotaiba increased production to offset the decline, and the overall loss in production was about 4 percent.
A widespread panic resulted, with the decision of U.S. President Jimmy Carter to order the cessation of Iranian imports, driving the price of oil far higher than would be expected under normal circumstances. In April of 1979, President Carter began a phased deregulation of oil prices. At the time, the average price of crude oil was $15.85 per barrel or 42 U.S. gallons . Deregulating domestic oil price controls allowed U.S. oil output to rise sharply from the Prudhoe Bay fields, although oil imports fell sharply. Long lines once again appeared at gas stations and convenience stores, similar to 1973. The second oil crisis lasted from 1979-1980.
The Iran hostage crisis from November 4, 1979 to January 20, 1981 involved 52 Americans who were held hostage for 444 days , after a group of Islamist students and militants took over the American Embassy in Tehran in support of the Iranian Revolution.
According to Bureau of Labor Statistics, the average cost of a gallon of regular unleaded gasoline in U.S. cities was $1.41 in April 1981. In today's dollars, that would be about $2.83 per gallon.
In 2012 the rising tension in the Middle East and the Greece national debt are affecting crude oil prices once again per the experts.
U.S. Defense Secretary Leon Panetta discussed the possibility of Israeli air strikes on Iran. If those attacks happen, the price of crude oil could double. Crude oil is currently valued at $105.38 a barrel on the commodities market.
European nations plan to stop buying Iranian oil by summer while Iran has threatened to block oil tanker shipments in the Persian Gulf if the embargo is implemented. The U.S. and Israel have said they will not allow Iran to build nuclear weapons.
The United States at present has a ready supply of light crude oil with no excessive demands for gasoline due to the mild winter.The rising fuel costs per the Federal Trade Commission are due to stricter air quality standards that require specialty fuels to meet pollution standards which adds to refining costs.
The price of fuel costs in the United States is also due to the increase in taxes over the years : Adjusted for inflation rates, state and federal taxes on gasoline have increased by 868 percent since 1922 when it was 0.4 cents per gallon. Taxes also increased 50 percent since 1981 when 14.5 cents per gallon was the average.
U.S. President Warren G. Harding in 1922 did not depend on foreign sources for petroleum .
The cost of refining America's crude oil was expensive at the time, but fuel availabilty increased nationwide. Vast untapped oil fields were available in 1922 as well as 2012.
Political energy policies and the dependance on Mid East crude oil exports did not make any sense during the 1973 Embargo. Assaults, violence at the pumps, national anger were the milder expressions shown by the general public. Price gouging to thefts, homicides that were committed for a tank of gas was also a part of that era.
sources :
www.foxnews.com/.../2012/.../domestic-production-eyed-as-gas-pric...
http://abcnews.go.com/International/wireStory/oil-hovers-97-traders-eye-us-supplies-15526971
http://moneyland.time.com/2012/02/06/gas-price-hike-expect-4-a-gallon-or-perhaps-6-by-spring
http://www.reuters.com/article/2012/02/09/china-oil-price-idUSL4E8D84JN20120209
http://www.todaysoilprice.com/
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