With some predicting that that US gasoline prices will rise nationally to more than USD3 per gallon this spring, a new study shows the heavy toll these spikes would have on Americans’ wallets. The economic white paper, “Ranking States Oil Vulnerability: Assessing the Continued Threat of Gas Price Spikes,” examines the impact of a gas price spike similar to the summer of 2008 in states across the country.
The data reveals that drivers in all states are dependent on oil for their transportation needs, but some states are more vulnerable to oil price increases than others. Drivers in the most vulnerable states will be particularly hard hit in the event of another spike in the price of gasoline, which is one of the economic risks Americans face due to the country’s dependence on oil.
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“Our ongoing oil addiction is draining our wallets and our economy, and rising gas prices will only add to this burden,” said Deron Lovaas, transportation expert at the Natural Resources Defense Council. “That’s why we need to move forward with clean energy and climate solutions that will not only strengthen our national security and our environment, but will also help revitalize our economy.”
Even without an oil price shock, there is a major gulf between the US’s 10 most vulnerable states and the 10 least vulnerable, the study says. The 10 most vulnerable states are (from most to least): Mississippi, Montana, Louisiana, Oklahoma, South Carolina, Kentucky, Texas, Maine, Georgia and Idaho. The 10 least vulnerable states are (from most to least): Florida, Washington, Pennsylvania, New Jersey, Colorado, New Hampshire, Maryland, Massachusetts, New York, and Connecticut (least vulnerable).
“The impacts of gasoline prices in the midst of a struggling economy make it clear that our country needs to reduce its dependence on oil,” said Elizabeth Hogan, analyst at David Gardiner and Associates and the author of the report.
“By promoting more efficient vehicles, clean fuels, smart growth, and public transportation, our government can put an end to our unhealthy addiction that pinches our wallets and threatens our national security and the environment.”
During the oil price spike of 2008, the US car market quickly shifted to higher demand for small and more fuel efficient vehicles, a trend which abated when gasoline prices later fell.
