Why are prices down?
Today's gas prices are lower than last summer because the demand for oil fell last year and now there is more than enough supply. Why did it fall? High oil prices cause people to use less. On average DOE predicts prices will fall to around $46 in 2014 then gradually climb to $57 in 2030. That's an OK prediction, but you can be sure there will be a lot of wild swings on the way. The swings are actually more of a problem than the average price of oil.
One problem is the US has almost No Energy PolicySolar, wind and biomass (ethanol) research are funded at the rate of $1.13 per person per year, and that's all together.
That's not a policy, it's a bad joke.
Why did gas prices go so high?
"Crude oil rose to a 26-month high yesterday after President Bush said that the United Nations Security Council must enforce its resolution on disarming Iraq." That was Feb. 7, 2003, a month and a half before the Iraq war, when the price of gas was $1.75. After that the oil market's fears were replaced by the reality of depressed Iraqi oil production, and in the summer of 2006 by fears of an Iranian oil disruption if the U.S. attacked Iran.
The other big reasons were disruptions in Nigerian oil supplies and rapid increases in China's use.
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