In mid-July, the Energy Information Administration reported that gasoline demand was at its lowest since June of 2004. There is a lower demand for fuel with the soft economy and fuel efficiency is better. This lower demand is causing, and being compounded by, increasing gasoline prices.
Gas demand drop
Over 2008, the demand for both gasoline and oil dropped considerably. Because it dropped, gas prices went up to $ 4 and more. There were also more fuel efficient and hybrid vehicles created. Fuel efficient cars are nevertheless being made although there has been more of a demand since late 2009. There is more of a demand for oil than there is for gas considering fuel for heating is needed in the winter.
U.S. Oil production
Oil production within the U.S. connects to gas prices. Although offshore drilling being shut down has hurt this number, typically 28 percent of U.S. oil production is met inside the country. With so little of the oil used by the United States being produced domestically, the small rise in demand is requiring more imports.
Summer driving
Summer driving has made the demand for oil lately go up. The American Automobile Association estimates that a growing number of people will be choosing to drive further this summer.
Fuel comparisons within the U.S.
The U.S. uses the most fuel. China is the second-largest consumer of gasoline, but demand in China is easily increasing to levels that could make it first. In numerous small European countries where fuel-efficient autos are becoming more popular, fuel taxes make the price of a gallon of gasoline as high as $ 8 per gallon. Since supply is going down while demand goes up, many people may have no other choice then to switch to fuel efficient vehicles.
