Increase of gas prices related to war

Full story... Alex Waddell, staff reporter

Many Americans fear that the war with Iraq will negatively affect the supply of oil to America and therefore cause gas prices to shoot up. The war has caused Americans to become scared of too heavy a dependence on other countries for oil.

Any American who has driven a car in the past few months has most likely noticed the steady increase in gasoline prices.

A major concern of many Americans is whether the war with Iraq will negatively and significantly affect the prices of gasoline and oil.

“The problems with the increase started with the striking in
Venezuela, where the United States gets 13 to 14 percent of its oil. A big chunk of crude oil was cut, causing an increase," said University of Alabama Associate Professor of Chemical Engineering Peter Clark. "Also, oil was tight in the United States. There wasn't a huge supply of it on hand.”

Clark said what helped push along the increase was the unusually high demand for heating oil this past winter. In the fall, oil refineries begin producing more heating oil and less motor fuel because there was a greater need for heating oil in the winter. This year, there was an equally high demand for motor fuel.

When President George W. Bush began talking about a war with Iraq, he aided in furthering the inflation of oil and gas. Clark said the United States gets a considerable amount of gas from Iraq, and the chance for supply disruption made people nervous. Oil was up to $40 a barrel at one point, a sizeable leap from the usual $25 offered by the Organization of the Petroleum Exporting Companies.

Of course, the war with Iraq is going to have a critical effect on future prices. Clark said the prices could continue to increase if the war lasts too long and the oil fields of Saudi Arabia, Kuwait or surrounding oil rich areas are damaged. There is also the dangerous possibility of shipping disruptions from Saudi Arabia.

Students interviewed expressed concerns about the rising gasoline prices.

"The prices have become ridiculous," said Stacy June, a sophomore in the College of Education. "Where it used to only take me about $15 to fill up my tank, it now takes me almost $20."

"I'm scared to go to the gas station, because I know that the price has probably risen even more since the last time I went," said Brighid Wheeler, a freshman in the College of Communication and Information Sciences.

Many people relate the current gas situation to the oil shortages of the late 1970s and early 80s, but they appear to have less fear over today’s circumstances.

“I remember people were lined up to get gas, and we were always afraid that there wasn’t going to be any," said Tuscaloosa resident Diane Maxwell. I don’t think what’s going on today is bad in comparison.”

"Actually, on an inflation basis, oil is cheaper today than it was in the early 80s," Clark said.

At this point, it is the war’s outcome that will determine the fluctuating prices of gasoline in the United States.

"If the war is over fairly quickly, the prices should definitely go down," Clark said.

This story was written by Alex Waddell, , wadde005@bama.ua.edu,
and edited by Laura Neergaard, neerg001@bama.ua.edu.