If you drive up to a typical gas pump in the United States, you will have anywhere from two to five options when it comes to the kind of gasoline you can pump. The differences in the gasoline types is based on the octane rating of the fuel. Octane measures the performance of engine fuels. This measurement indicates how much compression must be applied to a fuel before it spontaneously ignites. The higher the rating, the higher the compression level. This rating is important when it comes to engine performance.
Fracking, more properly called hydraulic fracturing, has revolutionized the production of crude oil and natural gas within the United States over the past couple of decades. While the technology has been around since the 1940s, it is only in the past few years that hydraulic fracturing has been applied to underground formations long since deemed unprofitable using more common extraction methods. Innovations in fracking methods has reduced its environmental impact and made it a valuable industry in many regions of the company.
When buying wholesale fuel, retailers, government agencies, construction companies and other large volume users have a couple of options. These buyers can purchase wholesale fuel by contract which sets a price and a steady supply or they can buy on “spot”, also known as rack pricing where there is no commitment by either party.
Oil and gas exploration has been going in new directions the last few years. This new exploration has produced brand new sources of oil and natural gas that have never been explored before. Hydraulic fracturing, known as fracking or hydrofracking, is leading the way in these new exploration efforts. This exploration has produced an ever-increasing amount of U.S. produced crude oil.
Gas prices are going to change. This change is a fact of life for drivers all around the world. The reasons behind why gas prices change are often complex and hard for most people to follow. What is easier to understand is the role of supply and demand when it comes to gas prices.
