Economics On The Fuel Economy

1. Americans are known for their long-term love affair with their cars. But as gasoline prices soar and concern about the environment mounts, the standard of living by ordinary people on a daily basis also become difficult; the need to conserve gasoline has become increasingly clear. What would it take to reduce the overall demand for gasoline in the United States most especially as we see it now?

The following article is regarding what is most important to everyone around us regarding the pricing for gasoline at the pumps. This is a topic that concerns most people on this planet, why are the prices for gasoline so high and is it regarding the greed of oil producing companies to continue to keep rising the gasoline prices as high as possible. We will discuss the many reasons why these fluctuating pricing keeps occurring within our world market. We will use the retail gasoline pricing between the

The “U.S. became the world’s top producer of petroleum and natural gas” in 2013 (Energy Infrastructure). “Capital spending in the infrastructure that moves and transforms oil and gas into everyday products … has increased by 60 percent between 2010 and 2013” (Energy Infrastructure). The rise to become the top producer has led to the decrease in “U.S. oil import dependence” and the “rise of U.S. product exports” (U.S. Oil Import Dependence). The increased exportation of oil and gas by the U.S. has allowed both of these products to become large moneymakers for the United States. Although we will probably never “completely eliminate our need” for oil, we can reduce our petroleum consumption and the damage we inflict on the environment (Reduce Oil Dependence Costs). By decreasing the “dependence on oil” in new vehicles, there has been a

In 2012, gas reached more than $3.50 per gallon. Today, gas averages have remained around $2.50. What I found most compelling about the pros is with every penny decline, a billion dollars is returned to customers. It is completely astonishing that one cent can have such an enormous impact. Because of the production of oil in America, low fuel cost have allowed Americans to save money and take much-needed vacations. Whether traveling by vehicle or plane, we are all much happier when we get behind the wheels of our vehicles or on a plan due to low fuel costs. On average, households are saving over $700 per year and even more if there are multiple vehicles. Americans were long overdue

The supply of gasoline to various regions of the United States also plays a significant role. The country is divided into five different regions: Gulf Coast, East Coast, Midwest, Rocky Mountain, and West Coast. Some of these areas do not have enough refineries in their own region to support the consumption and therefore need it brought in. For example, the West Coast has very limited pipeline connections from the other regions. It must rely on water shipments and its small amount of refiners for its supply. If something should happen to the water shipments, i.e. a hurricane, tsunami, etc. it would greatly effect the supply of gasoline.

Even though the many different modes of transportation are crucial for survival, what happens behind the scenes is the most important attribute in keeping millions of vehicles and all of the world’s population running smoothly everyday, all day. This priceless and valuable commodity is what is commonly referred to as crude oil, and after several steps of refining, useable petroleum products emerge. (How Stuff Works, 2016)

Citizens in a traditional economy are already accustomed to the long walks in heat or cold in order to get to their destination, so they do not need gasoline to power their motor vehicles. Economist John Maynard Keynes would argue that the government should be spending money on reasonably priced gasoline for the nation and that by buying expensive fuel products not only is it polluting the environment but it is running many citizens into bankruptcy. Several cars are put up for sale every year because individuals across the nation cannot afford to keep the bills, between insurance, maintenance and gasoline a cars expense in a month ranges from one to three grand. The government needs to set a new price standard for gasoline, by having it set to a lower rate, it would save the stress of many

Drivers realize that the price of gas is tied to the market value of crude oil, and has a direct impact to their daily commutes, errands, and vacations. However the reality is that the price of fuel has implications much grater than most consumers realize. Fuel prices affect nearly everything we purchase. For example, the price of farm commodities and food increase because farmers pay more for the fuel for their farm equipment and trucking firms pay more for fuel to get the commodities to market. These shipping “fuel surcharges” impact all goods

Discuss how rising oil prices might affect the macroeconomic performance of an economy. (25 marks)

Gasoline is a flammable liquid that is made from the refinement of petroleum or better known as crude oil. It helps fuel cars, farm machinery, planes and other type of engines. What is petroleum? It’s a fossil fuel that supplies energy around the world than any other source out there. Petroleum, including gasoline is primarily a mixture between hydrocarbons and small amounts of other substances. In 1994, its known that the United States used up to 7,587,00 barrels of oil a day which concludes that America is the worlds largest consumer in oil. The majority of today’s crude oil is located along side the Persian Gulf Basin with some amounts in Alaska and in

Over the past couple of years, global fuel subsidies have had tremendous influence on energy market systems. The incentives created by global fuel subsidies create excess consumption as well as ineffective markets. In his article titled: “The Environmental Cost of Global Fuel Subsidies”, Lucas W. Davis explains that it is necessary for countries to reform fuel subsidies in order to accurately reflect private costs and external costs in energy prices (Davis, 2017). In other words, Lucas W. Davis attempts to quantify the external costs from global fuel subsidies in order to reflect the true cost on environmental externalities. This is an important issue because the presence of fuel subsidies not only damages energy market systems but it

The main reason that a government imposes a taxes on fossil fuels is to try and correct for the negative externality (pollution) which is produced when they are consumed. Without the tax there would be a market failure as drivers would be over consuming petrol as they are not being charged for the damage to the environment. In order to order to answer this essay as to whether the tax should be reduced, I am going to focus on 3 aspects; those that lose from a reduction, those that gain from a reduction and finally at what level the overall price for petrol was BEFORE the tax reduction. In my conclusion I will show that this is key to deciding whether the

The formation of the other two fossil fuels (crude oil and natural gas) took millions of years just like coal. Oil and gas come from the remains of small animals and plants. Long ago, when the animals and plants died, they sank to the bottom of the sea. The dead matter formed a large mass, which over time was covered by layers of sand, silt, and mud. As the weight of the sediment increased, the mass became more and more compressed. Then, the heat and pressure of the Earth eventually turned the mass into oil and gas. If the heat applied during the formation was low, then more oil was produced than gas. If the temperature was

The US consumed 142 billion gallons of gasoline in 2007 and the tax applied on it is 18. 4 cents on one gallon. All around the US, there are around 162,000 retail gasoline outlets. With the price of crude oil hovering around $100 a barrel, it is no wonder that concern is growing about the gas prices being so high. After all, modern economies are kept moving by this lifeblood. For instance, in the United States alone personal vehicles consume more than 140 billion gallons of diesel fuel and gasoline per year.However, there are several factors that contribute to the gas prices being so high. Given below are a few of them. Increasing Demand for Oil One of the main catalysts for the incessant rise in gas prices has been one of the most

Fuel and the economy, the effect it has on the general public. The present gas costs have a bigger effect on purchaser spending, however less on the percent of fuel bought, after all individuals still need to drive themselves places. (buyer psychologist.com) A significant increment in expense will be important to decrease the amount requested. Fuel is too expensive and unsafe to the economy and the earth in this manner society needs to discover option fills, which best serve, the general public. Fuel and nature, it adds to contamination noticeable all around and different impacts it has on individuals. Gas utilization adds to Air and Water Contamination, thusly individuals need to figure out how to decrease contamination in their social