Heating Commodities
Back in the middle of October, the price of natural-gas had risen because a gas company was forced to shut down a pipeline due to the need for repairs. This impending shortage led to the decrease in prices for other heating commodities, as well as larger profits. The demand for energy was becoming greater and greater because it was that time of year when consumers began storing energy in their homes to prepare for the cold winter months ahead.
The four commodities mentioned in this article, crude oil, heating oil, gasoline and natural gas are all substitutes for one another. This is true because the cross elasticity of demand states that as the
…show more content…
The commodity, energy, is something that people can not go without during the winter months. If their is a shortage, which means that consumers demand more than the available supply, it leads to an increase in price.
As shown in the graph below, as the supply decreases, the price increases. This means that the price is inelastic. This is true because as the price of the commodity is increased, the total amount spent on the commodity will increase also.
The price mechanism reflects scarcity, which is stated as the greater demand for a good, energy, (because of the desire to store it for the colder months ahead) with the same supply of that good becoming scarce resulting in a higher price.
Consumer's demand for energy changes with the seasons. For example, the demand for energy in the summer is probably very low. The demand for energy in the fall will be higher because consumers begin storing it for the winter. And during the winter months the demand is high, where as during the spring months the demand decreases from the other months. This commodity is greatly influenced by the climate and the type of region consumers live in. For example, people in Florida do not have the same type of energy bill as the people in
Pennsylvania do.
The market of a commodity
Our methods of energy generation and usage are another valuable resource that we must use responsibly if we are to protect it. According to the Florida Energy System Consortium,
8. Create a graph: Select the GRAPH tab. Set the mass slider to 0 kg, and click Record to plot a point on the graph. Plot a point for each possible mass to create a graph showing the relationship between pressure and volume.
Florida Public Service Commission forecasts from current trends that by 2024 the use of environmentally harmful energy sources such as coal, nuclear power, and oil will decrease (2). The use of natural gas is forecasted to rise to generate 64.73% of Florida’s energy (Florida Public Service Commission, 2). According to the forecast by Florida Public Service Commission, the use of other sources to generate energy will also decrease
The price of gas has gone up for the 30th day in a row, and with it tempers are rising. Increased demand for public transportation is expected to continue into the spring [1]. The impact of high oil
The Standing Rock Sioux tribe believes that there is a great risk of the pipeline leaking into the water source, even though there is already pipelines located below the Missouri River they do not want any more new oil pipelines to endanger their sacred burial land. They are at great risk of environmental damage and poisoning the people that use this water on a daily by putting this pipeline below Lake Oahe. Most of the 1,200 mile long Dakota Access Pipeline has already been built except for the last piece that is going directly under Lake Oahe, construction has been further halted because of the protesters and their supporters. They halted the construction of the pipeline because of the protest camps that were set up right near the construction site, located near the Missouri River.
Since 2010, there have been “more than 3,000 incidents of leaks and ruptures at oil and gas pipelines” according to the Pipeline and Hazardous Materials Safety Administration (Worland). The Dakota Access Pipeline has sparked controversy between the U.S. Army of Engineers and Native Americans. With threats of damaging their water supply, cultural land, and impeding a treaty made in 1851, had Native Americans protesting by resisting removal. The threatening impact on Native Americans deemed unconsidered and unheard of by government when they originally planned to build the pipeline through the area. And despite a severe winter storm bringing freezing conditions, protesting Natives remained (Maher and Connors). But why did it have to come to desperate measures that endanger one’s personal safety, just to gain the attention of the government? Native American sovereignty has been repeatedly impeded on, forcing them to take matters into their own hands. Concerning the decision prior to construction, the Standing Rock Sioux tribe claims the federal agency did not appropriately consult them prior to construction (Merrit). Recently, Army Corps have halted the passage of the Dakota Access Pipeline due to their outcry. But if the government had just considered the vote of Native Americans in the first place, the decision could have satisfied everyone who at least got a say
With recent event the Obama’s Administration has halted the further construction of the North Dakota Access pipeline. This event have sparked the nation into an uprise in protests and public speaking against North Dakota Access. Now thrusted out onto a global stage, the struggle on both sides intensifies either is not going to stand down. The people of Standing Rock Indian Reservation are protesting against North Dakota Access to continue construction of the “North Dakota Access Pipeline”. Additionally the Army Corps of Engineers has denied the permit that allows construction underneath the Mississippi and Missouri River. These events have now escalated to national attention. It is not in the public safety or well being to have further construction or completion of the North Dakota Access Pipeline should it have negative environmental impacts and be harmful to the American people. ("Federal Government Halts Construction Of Part Of North Dakota Pipeline.")
The federal government has stopped the pipeline company from crossing the river. The reason, the Army Corps of Engineers is reviewing approvals that was previously given for the project. It’s uncleared if the Crops will allow or block the pipeline. Its anyones guess when the final decision will be
the pipeline is close to a river. The river is the only source of water that the Standing Rock Sioux
Oil has been an important resource of energy in America “since the discovery of the Spindletop geyser in 1901. It drove huge growth in the oil industry in America. Within a year, more than 1,500 oil companies had been chartered, and oil became the dominant fuel of the 20th century and an integral part of the American economy” (History.com Staff). This had developed the construction of pipelines to move the oil within the country and offshore in coastal waters. Recently, the federal government approved the construction of a new pipeline that would be transporting crude oil from North Dakota to Illinois.
I believe that this number increases especially during the fall and winter time due to the weather being lower and that affecting homes. As stated in Document D, heating is 31% of the electrical usage in a home. That is the highest percentage out of all the other electrical usages. For example, appliances and computers are only 9% of the electrical usage- which are things we use all the time. Have you ever had your parents’ blame you for the electricity bill being “sky high” because you leave your light on? Well light is only 11% of the electric usage, which isn’t as much as many other things that raise the electric price! If the price is too high then I consider finding ways to reduce the
1. I have experienced high rates first hand. It’s never fun paying $700 for one month of energy when your home claims to be energy efficient.
The environmental consequences, of drilling and other related to the activities of this new pipeline not to mention the nature that is being destroyed. Not to mention the protected forests and other sorts of landmarks that this pipeline will damage.
The United States consumes more energy than needed, compared to the rest of the world. However, to properly address such an issue as over consumption of energy, one first must understand what “energy” is.
Heat is a form of energy that is transferred between two substances at different temperatures. The flow of the energy is from the object of higher temperature to the object of lower temperature. The heat is measured in units of energy, usually calories or joules. Temperature on the other hand, is how cold or hot an object is. The temperature is the average kinetic energy per molecule of a substance. This is measured in degrees on the Celsius or Fahrenheit or in Kelvins.