Resources for Bay Area
Teachers and Students


Common Core State Standard
SL.CCS.1/2/3/4 Grades 6-12: An essay of a current news event is provided for discussion to encourage participation, but also inspire the use of evidence to support logical claims using the main ideas of the article. Students must analyze background information provided about a current event within the news, draw out the main ideas and key details, and review different opinions on the issue. Then, students should present their own claims using facts and analysis for support.

FOR THE WEEK OF JUNE 27, 2022

Summer travel impact: Here's why gasoline prices steadily spin higher across U.S.

frontpageactionpoints.gif
1.gif
Find and share a comment about gas prices, or the cost of living in general.
2.gif
Can you spot any mention of summer destinations in your state or nearby?
3.gif
Read other news about the U.S. economy, including jobs or inflation, and tell what you learn.

American drivers are paying record prices for gasoline. So summer trips by vehicle with your family will be costlier because filling the tank costs over $5 a gallon nearly everywhere. In some areas, it's $6 or more. This month's continuing spike has various causes, including Russia's invasion of Ukraine. Economic sanctions by U.S. and European leaders have cut off Russian oil exports, a major source of the raw material for gasoline. A large Wall Street firm, Goldman Sachs, recently warned clients about "unsustainably low levels of global oil inventories."

But Russia's war isn't the only reason. Average gas prices were already expected to pass the $4-a-gallon mark for the first time since 2008 because of rising demand as pandemic lockdowns end, business and leisure travel increases, and airlines resume fuller scheduled. All that boosts demand for gasoline, diesel and jet fuel made from petroleum. Summer travel also traditionally raises consumption and prices, reflecting an economic factor called supply and demand. Plus, with prices in Europe even higher than in the United States, U.S. and Canadian oil producers have increased oil and gas exports – further limiting supplies here.

At the same time, U.S. refiners hesitated earlier to return gasoline production to pre-pandemic levels amid concerns that tougher environmental rules could cut future demand. Now it's hard to scale up production while oil companies face the same supply chain and hiring challenges as thousands of other U.S. businesses. In addition, state and federal environmental rules lead some refineries to shut older plants rather than investing what it would cost to keep them operating.

President Joe Biden last week asked oil producers to cut costs for Americans by expanding gasoline supplies. "There is no question that Vladimir Putin is principally responsible for the intense financial pain the American people and their families are bearing," Biden wrote to executives. "But ... historically high refinery profit margins are worsening that pain." Oil executives said at a U.S. House hearing in April that they're not engaging in price gouging and are working to shift to cleaner energy, which is why production of traditional fuel isn't up significantly. "Today's crisis and the pressure on hydrocarbon supplies and prices reveal the urgent need to accelerate the energy transition," testified Gretchen Watkins, president of Shell USA.

Exxon leader says: "The uncertainty of supply in a tight market with growing demand leads to significant price volatility — which is what we are seeing today." – Darren Woods, chief executive

Biden says: "At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable." – June 15 letter to U.S. oil producers

Industry expert says: "Economics mandate you make more [higher-priced] jet and diesel fuel to the detriment of gasoline." – Tom Kloza, top energy analyst at Oil Price Information Service in Rockville, Md.

Front Page Talking Points is written by Alan Stamm for NIEonline.com, Copyright 2022

Front Page Talking Points Archive

Election-year drama: Florida governor draws attention by sending asylum seekers to Massachusetts

Juul, accused of 'relentlessly' targeting teens, will pay $439 million to end vaping legal case

Death of Queen Elizabeth II in Britain ends a historic seven-decade reign

President Biden OKs loan break for students, drawing gratitude along with opposition

Edgy books in schools prompt discussions of parents’ rights, education and 'censorship'

Vacancies at the head of the class: Teacher shortages affect schools across America

Tough steps are ahead as Western states must cut water use from Colorado River's reduced flow

Monkeypox cases rise in U.S. and elsewhere, though this virus doesn't bring Covid-like fears

Awareness spreads that early-morning classes are unwise; California has a new school start-time law

Teens benefit from wider choice of better-paying summer jobs

Complete archive