OPEC Cuts Oil Production
December 8, 2022
Anyone who drives is no stranger to the fact that gas prices in California continue to climb higher and higher, but when the Organization of Petroleum Exporting Countries, more commonly referred to as OPEC, made the announcement to reduce oil production by two-million barrels a day, it became clear to the masses that gas prices would not be lowering any time in the near future.
As of October 10, KTLA News reports that the average gas prices in California are around $6.30 per gallon while the national average is significantly lower at around $3.19 per gallon. Even though California’s gas prices are much higher than the national average, the nation as a whole is negatively impacted by OPEC’s oil production cuts. Due to the worldwide decrease in oil supply because of OPEC’s decision, gas prices will likely continue to rise.
OPEC’s oil production cut has highlighted the many problems of being overly reliant on fossil fuels. By relying on a scarce resource that is strategically controlled by foreign nations, people across the world are impacted whenever changes in production and prices are made. People were shown this truth when gas prices first rose over Russia’s war in Ukraine, and now that prices will continue to rise because of OPEC’s production cut, it is becoming increasingly more evident that being too reliant on fossil fuels can become a major problem.
While the United States is working on trying to combat the rising gas prices that are affecting so many Americans, there is little that can be done, as the United States is very reliant on foreign oil. Many American policy makers are scrutinizing President Biden’s cooperation with Saudi Arabia, and even more are concerned with the fact that Russia is the nation that is benefitting the most from the OPEC production cut.
According to Megan Chou (12), “It is disappointing to hear that OPEC is cutting oil production because it means that [she] will have to spend more on gas.” The already very high price of gas has already become a pressing issue for many Americans, and now a relief from the high prices seems even further out of sight. Until better solutions are found for combating the rising oil prices in America, many people will continue struggling to afford record high gas prices. OPEC’s production cut has only further revealed problems with being too reliant on foreign nations for resources as essential as oil.