How To Calculate and Forecast Gas Prices

December 24, 2008 12:52PM

(bettertrades) - Are low gas prices here to stay? Will the energy crisis that gripped the nation during the summer of 2008 return? These are questions that lie at the heart of major decisions made regularly by companies, investors, and everyday Americans alike.

The oil question is so important to the U.S., and the rest of the world to a lesser extent, because it lies at the heart of nearly all our commerce and recreational activities. The U.S. is responsible for about 25% of global oil consumption per day (About 20 million of the 86 to 87 million barrels produced on average), translating to roughly 175 million gallons.

Where do those billions upon billions of dollars go when you fill her up? During each trip to the gas pump, you're paying about 60% for the underlying crude product, just under 20% in state and federal taxes, and roughly 25% for refining, distribution, and marketing.

Article Index

• Intro
• Cost Per Barrel
• Other Factors
• Where is the oil
• Forecasting