Effects of Crude Oil Prices

5118 Words Feb 13th, 2006 21 Pages
Executive Summary What affect does the price of oil and gas have on the economy? How does this affect the daily lives of the entire population? The preceding questions are the basis for the enclosed report. The primary objective of this report is to give a few reasons as to what causes prices of oil and prices of gas to rise. Among these reasons, speculation of things that may or may not happen, like a terrorist strike, is one of the leading factors. Another reason for the continued rise in prices of oil and gas is the constant growth that China is experiencing in population and energy consumption. While each of these natural resources is often spoken of in conjunction with one another, they are very different commodities with …show more content…
It seemed on plausible to research the knowledge questions within the survey itself to verify what the actual answers to the questions asked were. The answers for these questions were found from the Department of Energy, American Petroleum Institute, and presentations from technical experts within the industry, such as the University of Houston 's Michael Economides.
The survey was taken from several University Center students and co-workers. While this in no way is representative of the entire population, it did provide a slice of information necessary for comparison. The survey was intended to provide an insight into common knowledge of the oil and gas industry and opinions of those surveyed. The survey included three questions for a demographic baseline, four questions related to knowledge of the oil and gas industry, and eleven questions of opinion related to the oil and gas industry. The opinion questions dealt particularly with prices of by-products such as gasoline. A total of forty surveys were conducted.
Findings

Secondary Research
Oil and natural gas effects consumer 's daily lives in aspects of not only petrochemical costs but also items such as electricity, clothing, and medication. Today the saying has been, "as goes oil, so does the economy" but the price of oil has not always been known in this way. Two reasons said to be responsible for the rising prices in oil have to do with wealthy countries and the fact that predominant oil
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