Do you wonder why oil and gas prices are so high? I often find myself wondering this, and finding OPEC or the oil companies at fault.

But is OPEC and Big Oil really responsible for these prices?

photo credit: glenn.batuyong

This excellent article titled: Why Are Oil And Gas Prices So High does a very nice job of explaining the drivers behind rising oil prices. When you combine the fact that both India and China are booming and starting to demand increasing amounts of oil, with the fact that the United States has been conditioned to low gas prices, you start to see why the demand for oil is skyrocketing. In the US, sales of SUVs and trucks have been booming, wiping out any MPG improvements we made after the last “oil shock.”

The Three Major Oil Shocks

The first “oil shock” came in 1973, during the Arab-Israeli war. The second came in 1978 during the Iranian revolution when Iran, the second largest oil producer at the time, ceased oil production.

And the third oil shock is what we’re now experiencing, instability in the middle east coupled with surging demand for oil worldwide - especially from the rapidly growing economies of China and India.

Speculation and The Peak Oil Theory

All of this is fueling speculation on the availability of world oil supplies. One of the concepts that troubles people is something called Peak Oil. Peak Oil is a controversial theory - given that world oil supplies are finite, when the world reaches the half way point in oil capacity, beyond which supplies can only decrease, it will radically drive up the prices of oil permanently, causing huge economic impacts.

But recent event have people buzzing more and more about this, and many are speculating that we have already entered the realm of Peak Oil.

In any event, we’re all going to need to find ways to improve our fuel efficiency and find alternate sources of energy.

We’re going to be sharing some proven tips on this blog for how to get the most MPG from your car, and also explore hybrid vehicles and other alternatives. Stay tuned for some great tips that can save you money at the pump!