Gas prices hit a historic high: What's driving them up?

[Spider Jerusalem]

10. One word: China

Conventional crude oil production has been flat since 2005. Shale oil, tar sands, and deepwater are making up some of the shortfall in conventional crude, but those resources are not economically viable with oil below a certain price point ($80-100 a barrel or so). The US still imports about half its oil; therefore US fuel prices are determined largely by the world market price, which is determined by demand (limited supply of oil, increasing demand from China and other developing countries). Total world demand for oil has increased by over 20 million barrels a day in the last 15 years or so; China alone has accounted for nearly a third of that increased demand.