Rising Gas Prices

The national average is about a dollar a gallon more than a year ago and 29 cents more than a month ago, while Oregon’s average is 90 cents higher than a year ago, and 15 cents higher than a month ago.

The price of crude oil remains above $110 per barrel, trading at about $112 per barrel Tuesday, up from $108 a week ago.

Two weeks ago, some analysts predicted falling demand at the pump, prompting a short-lived decline in oil prices, but crude prices rallied 4.7 percent for the week.
In May 2004, The New York Times reported that congressional Democrats "were stepping up pressure on the Bush Administration to ease gasoline prices," when prices were still under $2/gallon. In April 2005, at another press conference, a journalist stated: "Mr. President a majority of Americans disapprove of your handling of social security, gas prices..." In 2006, Senator Barbara Boxer (D-CA) exclaimed: "Since George Bush and Dick Cheney took over as president and vice president, gas prices have doubled...They are too cozy with the oil industry" after she drove one less-than-energy-efficient block to a press conference at a local Exxon station.

The impact of the delays goes beyond the oil industry. The Gulf coast economy has been hit hard by the slowdown in drilling activity, especially because the oil spill also hurt the region's fishing and tourism industries. The Obama administration in September estimated that 8,000 to 12,000 workers could lose their jobs temporarily as a result of the moratorium; some independent estimates have been much higher.

The slowdown also has long-term implications for U.S. oil production. The Energy Information Administration, the research arm of the Department of Energy, last month predicted that domestic offshore oil production will fall 13% this year from 2010 due to the moratorium and the slow return to drilling; a year ago, the agency predicted offshore production would rise 6% in 2011. The difference: a loss of about 220,000 barrels of oil a day.

“2008 was a good year for us,” Lieghio said. “Even though gas prices were high, Mackinaw City isn’t too far for people to visit, and there are good bargains.”

Shepler ferries won’t be raising their fees to take tourists to Mackinac Island this summer, said Bill Shepler, president of the family-owned business. He bought his gas in January to avoid the rising costs.

While his customers couldn’t do that, he doesn’t think paying more for gas will keep people from traveling this summer.

“I think people will keep going on vacations — maybe not as far or as long,” Shepler said.