• Allison Miles •
• Originally published May 18, 2008 at 12:14 a.m., updated May 18, 2008 at 12:14 a.m.

At an average of $97.94 per barrel, 2008’s first-quarter crude oil prices have nearly doubled from last year’s first-quarter average of $58.08 per barrel.

The growing worldwide demand for oil — with a supply that hasn’t kept up — is the main contributing factor, said Ron Planting, an economist with the American Petroleum Institute.

Most of that growth takes place in Asia and developing countries, since the United States’ oil consumption remains flat, Planting said.

“If you look at places like China, they have strong economic growth - close to double-digit,” he said. “It’s a large population that wants to improve its living standards, and that means more energy consumption of all kinds.”

Those increased prices mean paying more at the gas pump, Planting said.

Crude oil closed at $124.02 per barrel on Monday, according to the Energy Information Administration Web site.

Divide that by 42 — the number of gallons per barrel — and you find that $2.95 of Victoria’s average $3.69 per gallon on Monday was because of crude oil prices.

And that worries Dillon Brown.

Brown, 22, said it used to cost him about $20 to fill up on gas, but that price has skyrocketed.

“I try not to drive unless I have to,” said Brown, who attends Texas A&M University. “When I’m at school, I hop on the bus.”

It’s hard, he said, because he doesn’t work when he’s at school. So any time he’s home in Victoria, he does what he can to earn a little extra cash.

While prices may be up, there is a silver lining, said John Bonneau, operations manager for oil field chemicals manufacturer Integrity Industries.

An increased demand means more exploration and more jobs available.

“It affects everybody, but it also stimulates the economy at the same time,” he said. “I don’t think people want to look at it that way, but it does.”

Even in Victoria, which Bonneau said is more natural gas-oriented, new jobs have come into the picture.

“If someone wants to work, there’s a job out there for them, especially in the oil industry,” he said.

Bonneau would like to see wages increase nationwide to help people meet the rising costs, but said people will continue using oil no matter what.

“The demand’s never going to go away,” he said. “We just hope the prices go down.”

Allison Miles is a reporter for the Advocate. Contact her at 361-580-6511 or amiles@vicad.com, or comment on this story at www.VictoriaAdvocate.com.

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