Gas Junkie - Gasoline Prices Questions

Question: What led to the spike in gasoline prices in the late 1970s?

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Answer #1:

None of those, actually. Carter imposed sanctions on Iran (for holding the hostages) so our oil supply was decreased substantially. We did not import any oil from Iran.

**I dare you to confront your teacher over this! That should be fun.

Answer #2:

Iran cutting production..
after Carter ordered Delta force to rescue American hostages
that ended very badly, the helicopter crashed in to another helicopter that was refueling....

Answer #3:

C

Answer #4:

The short, non-P.C. answer is supply and demand. Although supply is short in the U.S. and high in the Mid-East, the greatest factor is the increased demand for gasoline in places other than the U.S., such as China and India.

Other factors for the shorter supply, greater demand and therefore higher prices (remember capitalism is the game) include high gasoline taxes, Venezuelan civil unrest, Middle Eastern wars, political instability in Nigeria and a huge lack of refineries in the U.S.

The reasons for the shortage of U.S. refineries are for the most part political and environmental, which go hand-in-hand. Although there are vast supplies of crude oil in Alaska and the Gulf of Mexico in U.S. waters, disasters like the BP fiasco and the Exxon Valdes spill some years back turn Americans against drilling here. We want to drive our big gas-guzzling trucks and SUVs, but we're not willing to pay the price as the planet's largest consumer of gasoline.

Most other developed countries also have efficient, well-used mass transit systems that are only available in a few major cities here in the U.S.A.

Perhaps the most idiotic and government pork-barrel-induced causes of higher gasoline prices are the taxes imposed and the fact that there are no universal types of gasoline here: in effect, there are different "flavors," as one expert put it, in different states -- and even, in some cases, different counties.

And since you're asking this question now, in summer, the main reason is increased car travel (read "gasoline sales") due to vacations.

The site below is very informative, with links to other related topics that will really leave you dazed and confused.

Answer #5:

Yellow is partially right.
In the late 60's, there was a growing concern about smog,especially in Southern California.
One of the plans that was brought forward was to rise the gas taxes(Remember, gasoline was selling for 2 to 3 gallons for a dollar, instead of the other way around). The howling of the Public forced a backing-off of the plan.
Some of the Arab governments that later helped to form OPEC, saw a rationing plan as a means to affect U.S.- Isreal foreign policy.





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