First, according to Finance Daily, Reuters and other sources,  there is NO GLOBAL SHORTAGE OF GASOLINE! 

Yet, gasoline prices continue to rise , with the average cost for regular unleaded now at close to $3.50 a gallon.  Fear that the unrest in the Middle East could spread from Libya, a minor player, to the big boys, Saudia Arabia and Iran, speculators and high end oil users are driving up the price of oil in the United States.

What this will do is slow down an already sluggish economy even more.  When prices rise at the pump, everything is affected--cost of food, medical supplies, fertilizer, travel, etc., because the cost of delivery goes up.

However, according to the Department of Energy, the top five import sources in order for the United States are Canada, Mexico, Saudi Arabia, Venezuela, and Nigeria.  Only one of those countries is in the Middle East.  And we only import 52 per cent of our oil. 

Here are some interesting facts everyone should know.

1.  The United States Currently Has 727 million Gallons of Oil In Its Strategic Oil Reserve (SOR). 

By choosing to release for sale to refineries at random times just some of this reserve, the government could accomplish three things:  It could drive down the cost of oil by as much as $15 dollars for an average savings of 37.5 cents per gallon, it could reduce the deficit, and it could stimulate the economy. 

And releasing reserves is not without precedent.  President Clinton released 28 million barrels at random intervals in 1996-97 to reduce the deficit.  Other oil reserves were released during Gulf Storm and Hurrican Katrina. 

2.  Speculators Drive Up Oil Prices With Quick Buys And Quick Sellsls

 According to Daily Finance's Peter Cohan, the New York Mercantile Exchange and the Intercontinental Exchange(IE) should double their present margin requirements for oil contracts, currently $6075 and $5200 respectively.  Cohan contends that by doing so, regulators could significantly slow speculators' buys, who borrow money for a quick buy and a faster sale of the oil when the price jumps. By slowing the rate of buys for speculators,  the price of oil would drop $15 dollars per gallon or 37.5 cents at the pump.

3.  Federal Gasoline Taxes Are 18.4 Cents Per Gallon While State Taxes Average 48.1  Cents Per Gallon

Were the Federal government to place a summer moratorium on gasoline taxes, it would save the consumer an average of 64.5 cents per gallon.  This would probably be a hard sell to states, though, as many are already struggling to balance their budgets.

4.  The EPA Requires Certain States To Burn A Special Blend Of Gasoline In The Summer To Reduce Emissions. 

 Were the government to lift the summer/winter gasoline formula laws,  some states' air would not be as clean,  but  they would have lower gasoline prices this summer.  In addition, the refineries would save the additional cost of preparing the formula for select states.  All in all, it would translate to a savings of 10 to 15 cents per gallon.

5. When The National Speed Limit Was 55 MPH, We Had Far Less Traffic Related Fatalities.

Lower speeds not only save fuel; they save lives.  Traffic-related deaths averaged 4,000 less in the years we previously had the lower speed limit before it was repealed.  Since prices are also tied to demand, this would result in a savings of about 10% of the fuel or roughly 35 cents per gallon.

IF ALL FIVE STEPS WERE TAKEN:  CONSUMERS COULD SAVE 1.52 TO 1.89 A GALLON!  WOULDN'T THAT BE NICE?

Unfortunately, we have a Republican House who would fight every single one of these measures because it is in the best interest of big oil  here and abroad to keep prices high.

At best, however, these  are temporary measures to stimulate the economy and lower gasoline prices.   Tomorrow, a look at the long term outlook for oil production and where it will come from.

https://www.dailyfinance.com/story/five-ways-the-government-could-make-oil-prices-fall/19872131/?icid=maing%7Cmain5%7Cdl7%7Csec1_lnk1%7C49221