Podcast: Gas prices… Will they Spike up Again? Why are they Rising?

On the most recent episode of the “Keeping it Real with Dr. Kuehl” economic update podcast for ASA members, this week Dr. Kuehl answers a question regarding oils, gas, and fuels and the pricing that comes with them.

Dr. Kuehl started off the podcast by telling members oil prices per barrel will most likely stay in the 70s and 80s… the U.S. is producing about 14 million barrels per day – we have the capacity to go up to 16 and we consume about 20. Chris says that the gallon of gas is half crude oil and half production, meaning that per barrel price will affect half the price at the pump. Refinery costs have been the biggest factor – and the biggest problem is we have not improved our refinery capacity since the 1970s.

Chris tells members that we will still be dependent on fossil fuels by 2070, but we are at a breaking point when it comes to investors. There is hesitation on their end which affects gas prices. He tells us that fuel prices will most likely go up, but with a lot of variations. The fuel price that will be the most volatile for ASA members is diesel. Simply because there are very few refineries. Diesel prices have been tracking to 50 cents to a dollar higher than gasoline and that will continue.

Dr. Kuehl produces three free economic update podcasts each month for ASA members (on Friday mornings). The podcasts are available in the MyASA portal at www.asa.net/myasa and through all traditional podcast hosting platforms.

Have a question or topic for Chris Kuehl that you would like answered on this podcast? Email it to Bri Baresel at bbaresel@asa.net.

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