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Communications and External Relations
Audio Spot: Crude oil prices expected to remain high; keeping gasoline prices up
OAK RIDGE, Tenn.,
Aug. 26, 2005
Projections are for gasoline prices to remain high for at least the next year, due to rising crude oil prices, according to David Greene, a corporate fellow at the Department of Energy's Oak Ridge National Laboratory.
"It's now on the spot markets over $60 a barrel," said Greene, an authority on fuel economy issues. "There are 42 gallons of crude oil in a barrel. So you can see we're paying about $1.50 a gallon just for the crude oil."
Greene said there is a greater demand for gasoline worldwide, as well as in the United States.
"The supplies are tight and the demand is still strong," Greene said. "People point especially to the demand from South Asia, China, India, growing much faster than people expected. There is continued growing demand in Europe and the United States especially."
Greene added there is a growing feeling that the world's conventional oil supply may indeed be limited, which may be another reason for the price increases.
ORNL is managed by UT-Battelle for the Department of Energy.