The reason gas prices in the United States are so high are because of the following factors:
- There are so many different blends of gasoline that refineries can’t make enough of the gas to meet the supply
- No refineries have been built in the last 20 years (no one wants them in their backyard and they are very expenseive to make - upwards of 1 billion each).
- Taxes on Gas are about 45 cents of the price.
- Oil reserves off the coast of California, Oregon and in Alaska will not be drilled because of the environementalists concerns of another Exxon Valdez
Solutions:
- Create 3 blends of gasoline, nationwide so refineries don’t have to keep retooling (coming offline) to change from/to all the different blends
- Give incentives to build more Refineries (yes I know its unpopular but we all know more competition drives prices down)
- Remove all Gas Taxes - Gas Taxes primiarily hurt the poor since they are the most affected by smaller changes (i.e. someone who has to drive 60 miles aday because they can’t afford a house near their job)
- Allow oil companies to drill off the coast of California, Oregon and in the Alaska preserve eventhough we may not see results for 3-4 years
While we do all of the above, still encourage conservation, increase mpg requirements for vehicles, and encourage alternative fuels like Ethanol, Biodisel and solar.
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