U.S. dependency on foreign oil continues to fall; gas prices fall
Ryan Scott
The United States is importing less oil this year then they have in over fifteen years.
This decrease in the use of oil has helped to keep down gas prices as well; prices are lower than they were a year ago according to AAA, even with the potential conflict in the Middle East.
According to the U.S. Energy Information Administration (EIA) the average price for a gallon of gas in the U.S. on Sept. 16 was $3.54 a gallon, which is down more than 30 cents a gallon from a year ago.
This is largely due to Americans using less liquid fuels and driving more fuel efficient vehicles since the recession started.
Chad Fletcher recently bought a 2013 Ford Focus hatchback and said he loves it, Fletcher said he averages about 35 mpg.
Fletcher had previously owned a 2005 Hyundai Sonata, which didn’t get nearly the same mileage as his new Ford.
“I was filling up at least two times a week in that car and now I fill up around every 10 days,” said Fletcher.
Fletcher went on to add that the gas mileage was a major contributing factor in his vehicle purchase because he has a long commute each day to work.
With Americans using less gas there will be less tax revenue collected from the sale of gas as a result.
Gas taxes vary from state to state, and Arizona currently has the tax set at 18 cents per gallon in addition to the federal gas tax of 18.4 cents per gallon according to bankrate.com
Greg Pratt, an economics professor at MCC, explained that even though there will be less gas tax revenue this year, gas tax is only a small part of the total taxes collected.
He feels that immediate effects from this will be minimal, but thinks it could be interesting to look from an analytical perspective at the future.
“It’s all about expectations,” Pratt said. “Price is information and part of that information is looking towards the future.”
According to USA Today, crude oil prices have been on the rise and this could result in a spike of about 10 cents per gallon for gas.
Phil Flynn, seniorenergy analyst at The PRICE Futures Group,thinks that in the long run, gas prices will drop in US because the demand for it will continue to drop.
“It is not $3 gas that is going the way of the 8-track, it is the internal combustion engine,” Flynn said.
He also went on to mention that the US hit a 24 year high for oil production.
