Faculty anticipate oil supply shortage, higher gas prices

"High gas prices have negatively impacted family budgets, but students at Oswego State are footing the gas money without complaint for the sake of experience.

"Many students at Oswego State have internships they have to drive to. Paul Roodin, from Experienced Based Education, said he has not heard students complain about the cost of gas limiting their internship decisions.

""Some internships are paid, a few offer ‘out-of-pocket’ expense reimbursement, and some offer a lump sum ‘stipend’ at the end of the summer when the internship has concluded," Roodin said. "If an internship offer is made almost without exception students will accept the position…regardless of pay or the cost of transportation."

"As gas prices reach four dollars, Oswego State’s faculty speculated the causes and effects.

"Professor Said Atri, of the economics department, noticed a connection between the United States’ foreign affairs and the rising price of gasoline.

""It does appear that the situation in Libya, and possibly in the Middle East in general, has affected crude oil prices and therefore gas prices as well," he said. "Of course on the demand side it is possible that because of the change in the weather and still ongoing economic recovery, demand in the U.S. as well in other countries has also risen. That would put additional pressure on the price."

"Last summer the gas prices dropped. Professor Bill Goffe, also of the economics department, said he believes the future may hold an even larger price hike.

""On Libya itself, they produce a type of oil, ‘light sweet,’ that is particularly well suited for being turned into diesel and gasoline," Goffe said. "World supplies of this type of oil are pretty tight right now. Many European refineries can only use this type of oil. Thus, the reduction in the supply of this type of oil is having an impact on the overall price of oil due to European needs."

"Goffe added that the expectation of other revolutions, like the one in Libya, would also impact the price of oil.

""The world might see a major supply disruption, such as was seen twice in the 1970’s with Arab Oil Embargo in 1973 and the Iranian Revolution in 1979," he said. "These major supply disruptions lead to very dramatic increases in the price of oil and helped put many countries into recessions."