Gas prices have hit the $4 mark in North Kitsap. It brings frustration for most of us. If we’re spending more at the pumps, we have to cut back in other areas.
Here are some of the culprits.
– Location: The West Coast has higher gas prices because of its isolation from gulf states, which is where most crude oil is delivered, refined and distributed from. Simply put, Washington receives the majority of its crude oil, by tanker or barge, from Alaska; a smaller amount arrives by pipeline from British Columbia. Refineries receiving these shipments are located in Blaine (BP), Anacortes (Tesoro, Shell), Ferndale (ConocoPhillips) and Tacoma (U.S. Oil).
Some of the petroleum refined products — gasoline, diesel and jet fuel — are used by Washingtonians, while some are exported to Oregon (which has no refineries) and California (which needs a special blend of gasoline to meet its state environment regulations). In eastern Washington, the Yellowstone (ConocoPhillips) and Chevron pipelines bring refined petroleum products to the Spokane area. As a result of this and other factors, Spokane’s gas prices are cheaper than in western Washington.
– Population Growth: The West Coast is ahead of the national average, although we have managed to cut back on our gas consumption.
– Market Forces: There is a growing demand for gas from China, India and other developing countries.
– Political Unrest: Any disruption of the supply of crude oil by Iran, Iraq, Venezuela, Nigeria and other countries who produce oil will cause prices to rise. Saber-rattling toward Iran is another grim contributing factor.
– End of Easy Oil: Easily accessible oil is essentially already accessed (except in some war-torn countries). What’s left is more expensive, harder to reach and harder to refine.
– Wall Street: Failure to establish regulations is instrumental in rising costs. Economist Robert Reich recently wrote for the Huffington Post, “The Street is laying odds that unrest in Syria will spill over into other countries or that tensions with Iran will affect the Persian Gulf, and that global demand will pick up as American consumers bounce back to life. These bets are pushing up oil prices because Wall Street firms and other big financial players now dominate oil trading. Financial speculators historically accounted for about 30 percent of oil contracts, producers and end users for about 70 percent. But today speculators account for 64 percent of all contracts.”
– President Obama: Republican presidential candidates blame President Obama for driving up prices by denying access to drill oil deposits in the Gulf of Mexico and the Arctic National Wildlife Refuge — and by implementing environmental protections. Eco-freaks disagree. They remember when Deepwater Horizon (BP) caused five million gallons of oil to be released into the Gulf of Mexico. The spill began April 20, 2010, flowed freely for three months and continues to devastate the Gulf two years later.
– Big Oil: Democrats blame the oil industry, which profits hugely from rising prices.
Solutions to high gas prices aren’t going to be fixed overnight by President Obama or anyone else. But his administration has managed to do a few things right for the cause by establishing agreements with automakers for better fuel economy standards for cars and light trucks, as well as fuel efficiency and pollution standards for new medium and heavy duty trucks.
Much more needs to be done. In the meantime, there are many easy ways to help consume less gas and save money while doing it.
Carpool when possible, consolidate errands and watch for lowest gas prices. It’s just common sense.
— Marylin Olds is an Opinion columnist for the Kingston Community News. Comments are welcome at marylin.olds@gmail.com.
