Global thirst, fears keep gas prices high

(CNN) — An interconnected set of domestic and international factors have pushed gas prices steadily higher over the past few years, and an almost unquenchable global demand for energy may keep them there for at least the short term, industry observers say.

The average price for self-service regular was hovering near $3 a gallon as the summer of 2006 got under way, according to a national survey of gas prices.

…Meanwhile, American production of crude oil also has gotten more expensive because the easiest places to drill have mostly gone dry, said Rob Schlichting, a spokesman for the California Energy Commission.

“It looks like we may be coming to the end of cheap oil. The really easy-to-pump product has been pretty much pulled out of the ground unless we have some new finds,” he said. “More often, we’re going to offshore areas like the Gulf of Mexico, which are more expensive to drill in.”

CNN