The Truth About Gas Prices

A nice, compact article from USA Today about the economics behind rising summer gas prices here.



Some highlights:

• Refining capacity is tight, and not all production lost due to the hurricanes is back online
  
  
• Reformulation with ethanol instead of MTBE is raising prices
  
  
• Fears of instability in Nigeria, Iran, and Venezuela add about $20/barrel to the price of oil
• Speculation on commodities markets drives up the price as well
• Oil companies are not gouging customers, but are making large profits while passing on the high price to consumers
• Even with prices around $3/gallon, Americans aren't really changing their driving habits or car buying choices by much.
• Federal and State taxes add an average of $0.46 per gallon, with large variations in state taxes.

• Production:
  
  
• More exploration, more refining capacity. Drill in ANWR, drill offshore. Encourage refinery development.
  
  
• But Democrats, "moderate" Republicans, and Greenies are against this, so not much is happening to increase domestic supply.
• Depose Hugo Chavez, install a pro-capitalist government that will increase production. Nurture Iraqi oil production.
  
  
• Regulation:
  
  
• Force a common national fuel standard, or at least a split California/Federal two-formula standard to simplify fuel blending.
  
  
• Have the EPA relax emissions regulations on diesel engines, to allow low cost diesel vehicles.
  
  
• But California ARB and EPA have a higher priority on clean air than on fuel economy.
  
  
• Conservation:
  
  
• Americans could drive less, or buy smaller cars. Carpools.
  
  
• But not a popular choice, apparently--witness weak sales of large hybrids, solid sales of pickup trucks and new GM SUVs.
  
  
• Taxation:
  
  
• Federal and State fuel taxes could be lowered, or deductions added for middle to low income taxpayers.
  
  
• Yeah, just try to pry that dollar out of Uncle Sam's deathgrip!

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Team 88 Lamborghini Gallardo

Team 88 entered the 2006 edition of the Gumball Rally with their white Lamborghini Gallardo. It’s the first Gumball for this team from Saudi-Arabia. It really seems Lamborghini is the new Porsche this year!

Read The Full Article:
http://www.gumball-3000.com/rally/2006/04/16/team-88-lamborghini-gallardo/

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Official Gumball 3000 fansite online

The official Gumball 3000 fansite hosted by Cardomain.com is online. Although we are sorry Gumball HQ was not interested in our offer to work together with us on bringing the best coverage for the Gumball 2006 we wish Cardomain all the best! And we are really looking forward to the 2006 edition of the Gumball [...]

Read The Full Article:
http://www.gumball-3000.com/rally/2006/04/16/official-gumball-3000-fansite-online
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