Increased gas prices in the US compared to the Middle East Essay

Increased gas prices in the US compared to the Middle East - Essay Example The high prices are mainly caused by the supply and demand factor. The demand for crude oil has immensely increased which directly affects the gasoline prices at pumps of USA. The supply has not been increased in that proportion. The consumption of gasoline in developing countries like China and India has been significant as the automobile industry is skyrocketing in these countries. The gasoline consumption in USA is about one quarter of the world’s total production. However supply and demand is not only the factor but the additional cost which includes taxes, cost of refining crude oil, transportation cost, and the profit to the gasoline dealer is also the reason and contributes about increasing the cost less half then cost of gasoline in United States. Rising gas prices is a matter of concern for the USA car manufacturing companies. It is expected that the use of Subways will be increased in the future. This may result in weakening the USA economy as car manufacturers are one of major stakeholders. Last but the most important factor is recent unrest in the Arab World. Although the countries like Egypt, Syria, Jordan are not the major crude oil producers but they play significant role in determining the world oil prices. President Obama has put aside the interest shown by some Companies willing to explore oil in Alaska and other areas. The aim of these people was only to increase the domestic exploration. This action of him has resulted in complete shutting down of the present oil drilling infrastructure in USA. It is reported that about 103 permits are in waiting list for review. But the Obama administration has not renewed any single exploratory drilling plan in the Gulf of Mexico. Moreover Obama administration has also put â€Å"7 year ban† on the oil exploration in the coastal waters in Atlantic and Pacific coasts and the Eastern Gulf of Mexico. According to the experts