Over the last week, gas prices across the country have risen dramatically. While the White House is taking the brunt of the abuse, the real culprits behind skyrocketing gas prices are OPEC and Russia.
A Tough Summer for Road Trips
Over the last seven days, gas prices across Texas have risen as much as six cents. In Wyoming, it’s risen ten cents. In every corner of the country, drivers faced a dramatic 4-cent-a-gallon increase at the pumps.
In response to the hike in gas prices, some pointed the finger of blame at Donald Trump. They argue that the President’s exit from the Iran Deal has triggered the spike. In other words, people are worried about Iran’s ability to export oil, so the price of oil rises in preparation for the expected shortage.
That’s a convenient solution to the problem, but it’s not right. The real issue lies in the OPEC/Russia connection.
The World Is Crying Out for Energy
The simple fact is that there is a whole lot of oil and natural gas on planet Earth beyond the supply found in Iran. Questions about the availability of oil coming out of a single country shouldn’t impact the global price of crude so drastically. The problem isn’t with Iran; it’s with OPEC/Russia failing to meet the rising demand for oil.
As more and more nations build up their infrastructure, the demand for oil and natural gas has risen to epic proportions. Even as the United States continues to smash production records month after month, the US energy industry is still struggling to meet international demand. The need for energy is too high.
Pick Up the Production Already, Folks
Which brings us back to OPEC/Russia, who entered discussions focused on how to proceed moving forward. Whatever clandestine decision they landed on, the result has not been to increase production significantly. OPEC, in particular, is having a tough run of it.
In May, OPEC output hit a 13-month low thanks to turmoil in Venezuela and outages in Nigeria.
More Oil Is Good for Everyone
Regardless of what the oil and gas landscape is for Iran moving forward, the most apparent solution to oil concerns is to follow the United States’ example and pick up production as quickly and safely as possible. There’s certainly more than enough desire for crude oil and shale to sustain several entries in the international marketplace.
At this rate, OPEC/Russia need to get back in the game. The United States can’t sustain the price of oil on its own.