It would take 10 to 15 years to bring any significant oil online....we have to pay back trillions of dollars that we have borrowed....these price rises have NOTHING (-0-) to do with SUPPLY and DEMAND...
It has everything to do with Inflation and Taxes
In the past, inflation and taxes have been the biggest driver in the price of gasoline.
1. Inflation causes everything to increase in price. An item that cost $1.00 in 1950 would cost about $8.78 in 2008. In 1950, gas cost about $0.30 per gallon.
2. Adjusting it for inflation, a gallon of gas should cost about $2.64, assuming taxes, supply and demand stayed the same.
3. The tax on a gallon of gas in 1950 was approximately 1.5% of the price.
4. In 2008 the federal, state and local tax on a gallon of gasoline between 15 and 20% of the price. This means that taxes have added $0.49 to the price increase in a gallon of gas, making it cost about $0.49 per gallon assuming there was no inflation, nor any change in the supply or demand.
5. This brings the total price of a gallon of gasoline to $3.13 in 2008 due to inflation and taxes.
6. Since oil is priced on U.S. Dollars, the decline in the dollars value is THE MAIN REASON for the inflated price and value of oil.
All this without any change in the supply or demand part of the equation.
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