The almost daily fluctuation of fuel prices at the retail pump is a source of frustration for many Americans. Aside from the fact that prices seem to be going nowhere but up, there is a common perception that retailers take advantage of consumers by raising prices unnecessarily on weekends and holidays, when people are more likely to travel. Energy companies such as Triple Diamond Energy Corp. recognize this public perception and hope to educate consumers about the many factors that go into determining the price you pay at the pump.

Political Pressures

Since oil is traded on an open market and sourced primarily from foreign interests, the whirlwind of political events can put a significant strain on the price of a barrel of oil. Just over a third of the suppliers of the world’s crude oil supplies banded together decades ago to form OPEC, an organization of exporters who work together to control the direction of oil prices. This one-third of suppliers control two-thirds of the world’s crude oil reserves, so their power is tremendous. When OPEC decides to reduce production, as it did in 1999, prices rise for everyone around the world. Companies like Triple Diamond Energy Corp. work hard to source oil from the most stable providers possible to ensure the best prices for the end consumer.

Global Demand

With the recent explosion in demand for oil in countries such as China, global demand has sharply increased over the last few years. Of course, production has not escalated fast enough to meet that demand and therefore the natural economic pressures of supply and demand are shaping oil prices every day of the year. With more global players vying for their piece of the petroleum pie, the price of oil has nowhere to go but up.

For this reason, companies such as Triple Diamond Energy Corp. have a priority to search for and support the development of domestic oil resources, so that a greater level of control over the prices that Americans pay at the pump can be achieved regardless of global demand.

Unforseen Vulnerabilities

Sometimes the price of oil is driven up by a short-term problem that unexpectedly affects the supply or availability of crude oil. For example, when hurricanes or other natural events impact a refinery’s ability to produce and distribute refined oil products, the supply decreases suddenly which leads to price spikes that are felt by the consumer at the gas pump. Other factors present may include worker strikes, equipment failures or sudden increased demand from a particular refinery. Companies such as Triple Diamond Energy Corp. strive to work only with refineries that have a track record of consistent capacity and deliverability.

As you can see, many factors affect the price of the gasoline that you and other Americans purchase every day, and these are just a handful of them. Pump distance from refineries, seasonal effects, and other considerations must be accounted for as well when calculating the total price of a gallon of gasoline.