Increasing demand and limited supply are causing Americans to feel pain at the pump once again.
In a report released by AAA in October, gas prices across the US hit their highest average levels since 2014.This trend has continued since then. Gas prices rose throughout 2021, reaching levels not seen since the middle of the last decade, according to the US Energy Information Administration . Gas prices spiked throughout October, reaching an average of $3.40 on November 22.
The price spike is caused by supply and demand: Americans are driving more as the flu has subsided, and disruptions in supply and trouble in energy markets overseas have made crude oil more expensive. As Americans are driving more, demand is up.
COVID-19 has radically altered the way Americans travel, just as it has so many other aspects of our lives. As a result of lockdowns and the uncontrolled spread of the virus, travel was canceled and commutes were greatly reduced.
However, by summer 2021, Americans were back on the roads. The number of vehicle miles traveled measured by the Federal Highway Administration declined in spring of 2020, but has now returned to what would normally be seen in midsummer:Increased driving by Americans also means more demand for fuel for cars. The US oil production and refining have not kept pace with the increase in demand for fuel.
In addition to that ramp-up in demand, there have been some big supply constraints as well.
Late in August, Hurricane Ida shut down much of the Gulf of Mexico's oil drilling and refining operations, according to the Energy Information Administration.Despite the prompt return of rigs and refineries, crude oil inventories remain low, indicating continued shortages. As of late September, oil stored at Cushing, Oklahoma, one of the largest crude depots in the United States, was down 40% from the start of the year.
With a shortage of domestic oil supply and stockpiles, gas prices are high. Energy markets around the world are experiencing a crunch.
On top of the slowdown in domestic oil supply, oil and energy markets overseas are also hampering supply.
CNBC reports that OPEC and other major oil exporters have repeatedly agreed to only modest increases in production, despite oil consumers like the United States and India pushing for higher exports.
In spite of the fact that the U.S. has greatly increased production over the past decade and countries around the world are beginning the process of switching to greener energy sources.Broader energy markets have been facing supply shortages as well. Natural gas and electricity prices in Europe are skyrocketing, and traders anticipate higher oil and other energy prices for months to come. The EU's main natural gas supplier, Russia, has held back on delivering more gas to the West, causing prices to be volatile and high.
It is no surprise that gas prices are surging given the surge in demand from the reopening of the US and the tight supply both domestically and globally.Therefore it's time to consider the reasons why we should invest more in solar and lithium battery renewable energy as fuel prices rise.
As solar industry stewards, it is pretty obvious to us why you, as a homeowner, should invest in your own solar power plant. When you partner with companies that research, develop, and install this technology like Koxin Energy , you're not only locking in decades of financial relief, you're also ensuring a cleaner energy future for us all.
1. Your Bills are High,same with fuel/diesel generator.
Savings with Solar: Arizona receives a tremendous amount of energy from an unlimited resource right beneath our feet, and it doesn't cost as much to process or distribute this energy as it does with fossil fuels. Apart from the fact that you can cut down your traditional utility use and bill by installing solar heating and cooling systems for your home, business, and outdoor areas, residents of Arizona who invest in their own solar energy system may also qualify for tax credits and exemptions.
2. It's your own property.
Adding storage batteries and generators to your solar energy system can significantly reduce or even eliminate your reliance on the public utility grid! You can live without relying on utility companies and their outdated, environmentally unfriendly energy-generation methods. Furthermore, whether your property is connected to the grid or not, solar panels and solar energy have been shown to increase the resale value.
3. Environmentally friendly and next generation friendly.
Positive impact on society and the environment. As compared to fossil fuel plants, solar energy plants use less water, produce less noise, and produce less waste, as well as have less of an impact on air quality and land. Since most renewable sources produce little to no carbon emissions during the life-cycle of a renewable power plant, global warming emissions associated with renewable sources are believed to be minimal.
Solar Equals Prevention: Fossil fuel mining and drilling extraction processes cause severe damage to the environment and human health. The byproducts of burning natural gas, oil, and coal also contribute to global warming.
4. A good way to invest in the Future
By investing in renewables is by investing in efficiency. Solar is one of the fastest growing sectors of renewable energy, able to generate electricity more cost-effectively with little environmental impact.
There is no end to the sun but there is a finite supply of fossil fuels. If you invest in solar energy technology and research, you're always making a wiser decision than if you invest in fossil fuels. If you renovate your home or office with solar equipment, you make an immediate impact by investing in solar energy.
5. Underutilised land can be used for solar power
even if you still wonder why solar power is important. Solar energy has become easily accessible to the majority of us due to its increasing need. Across the world there are vast areas of land that are far from big cities or capitals, and are not used for anything.
We can use solar energy to make use of the land and thus generate great value; we can use solar energy to power our homes. We can avoid having to use high-priced land that might be better suited for other purposes.
Probably you've heard of solar farms - large areas that collect solar energy. It is a great example of how solar power utilizes underused land.
6. Solar Power Creates Jobs and Economic Growth
Solar power has the potential to grow our economy. Companies installing solar panels will have an increased need as more people choose solar. Additionally, this creates additional jobs for skilled workers, which ultimately keeps the economy growing.