Gm 545 Project Paper 1

* Which one of the following fuels finds maximum usage in transportation in the US? Gasoline

The average person In the u.s uses 3526 liters of petroleum per year. Experts predict that if not already oil will peak in the next 20 years .

Evidence: 18.6 million barrels per day (MMbd) of petroleum products during 2012, and the United States imported 11.0 million barrels per day of crude oil and refined petroleum products in 2012.

The American Petroleum Institute reports that 32.6 percent of the final cost to the consumer is the refiner's share that covers the cost of refining and provides the oil companies with their profit (Brodrick, 2000a). The government's share is greater, however. "Taxes account for 37.4 percent of gasoline costs and averaged 41.5 cents per gallon in 1999, according to the institute. The federal government's share is 18.4 cents, and the state takes about 23 cents. Occasionally, local municipalities tack on an extra tax" (Brodrick, 2000a; p. 000215b).

Figure 4 in Appendix A demonstrates the supply and demand of white potatoes. In the short run price, demand and supply with all increase because of the commodity being added to the program. While in the long run both supply and demand will increase. Price will decrease because consumers will keep demand high enough to have equilibrium at a lower price than in the short run. By adding the proposed changes white potato farmers will be better off.

The oil/energy industry is one of the largest industries in the United States. According to the Department of Energy (DOE), fossil fuels (including co4tral,

Retaining employees is one way the turnover rate can decrease, Branham (2000), focuses on retaining valuable employees by incorporating four key elements. The first key elements is, “be a company that people want to work for”. There are many companies that have been labeled as, “employers of choice”. These employers all have something in common, which is how they value their employers (Branham, 2000). They treat their employees with respect and like family. With being an “employer of choice,” people are the most valuable asset; not just customers but employees too. Many companies go above and beyond for their customers, but not for their employees, yet they wonder why they are losing valuable talent.

This number may comfort some, but there is still reason to be fearful. Ninety percent of Earth’s refined oil is burned through transportation, with the United States consuming 25 percent alone (Davy par. 5, 6, 8). Collectively, factors will add up to devastating consequences later if change isn 't pursued. Geophysicist M. King Hubbert confirmed, through a calculated formula, that oil production will increase to a peak in the year 2030, but will proceed to decline soon after until oil drains too far down to be economical to continue drilling or having the well run out entirely

The price of gasoline is definitely driven by the concept of supply and demand. When prices fall, quantity demand will rise, when price rises, quantity demanded will fall. This statement is true in most cases. But gasoline is a necessity to most Americans. The demand for fuel does not decrease when the price increase. Consumers often influence the price of gasoline. Gas prices in the late spring and summer months are the highest during the entire year. These are the periods when consumers drive the most. This is the time when most construction and manufacturing jobs are in operation. Like now, in the winter, gas prices are at the lowest point in a six month period. The six-month gasoline price chart I

In the year 2013, according to the U.S. Energy Information Administration, the United States consumed a staggering 6.89 billion barrels of oil (U.S.EIA). Which in fact, equates to 18.89 million barrels being consumed every single day. That is a vast amount of petroleum products being consumed on a daily national level. If the calculation is made, based on a barrel equaling forty two gallons, it would come out to 289,583,700,000 gallons per year, or 793,380,000 gallons per day. The amount is incredible, almost unbelievable. If the United States continues its use of oil at this rate, the supply will only last another forty years. With more and more cars being on the road and operating machinery performing tasks, the supply of petroleum will not be able to meet demand forever. As our use of fossil fuels increases, so does our need for a new source of renewable energy.

Crude oil is used for diesel and gasoline, heating, asphalt, lubricant and many more. In 2014 gas and oil combined value was close to $16 billion.

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.

How much are we consuming? We consume a lot of oil for gas which includes vehicles, airplanes, and etc. There is a lot of consumption in just in an hour in fact “the United States consumes almost 20million barrels of oil per day, and at a rate of 1.5 million barrels per day from Alaska, 7.5 percent of American oil consumption could be met for over 20 years.” ("Oil Drilling in Alaska" 1)

Prices in gasoline change due to various reasons, some of those main reasons are affected by four sets of cost. Crude oil, taxes, refining costs and distribution and marketing. Crude oil affects the price the most, Why? Because crude oil costs are responsible for two-thirds of the cost of a gallon of

*Estimated demand based on the average fuel oil consumption survey made by Shell Oil Company during summer seasons (http://www.shell.com)