Why Are Gas Prices So High?

Just as it is a good idea to learn from the past, we can glean some lessons from looking at crude oil prices history. Here one key example of how understanding the trends involved with this history can help us to be prepared for future situations as oil prices rise and fall periodically.

Many of us lived through the oil crisis of the early 1970's. Few of us were prepared for the sudden leap in oil prices that prompted some major changes in the way we looked at oil consumption and how dependent our society was on that consumption. Because there had never been a crisis to match what was happening, more people were driving larger and heavier vehicles. Some people who were just barely getting by had to choose between paying their utilities or getting gas for travel back and forth to work. Others had to deal with gas rationing, and would have periods when they had to find alternate forms of transportation.

By being aware of the circumstances that led up to that oil crisis and using crude oil prices history as an indicator, we are in a better position today to prepare for and weather a situation where access to petroleum and other oil products are in short supply to the consumer. Even if the reason is not an embargo, noticing the rising cost and dwindling availabiltiy will help us to plan to stock up on non-perishables, use public transportation and maybe even shop closer to home so we can use a bike to get around.

While we are probably doing a better job with recycling oil products than we have ever done, reality is that most of us still depend heavily on the production of fresh petroleum and other oils. Crude oil prices history has taught us that having a backup plan in case there is a temporary increase in price, which certainly comes hand in hand with less available product, is absolutely necessary if we are to continue to function effectively in our daily lives.