Oil Industry

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 passage I will analyze in this close reading is from the works of Theodore

The state adopted a new regulation on the quality of fuel, thus raising prices of production of the good. Among other things a great amount of additional environmental guidelines have all contributed to sky-high prices. As a result in 2006 gas was 23 cents higher in the state of California than the national average. Other control within the government has contributed to the shut down of many small refineries in the state only 14 refineries remain. Since there are so few refineries in the state, an issue at one refinery will significantly affect the gas

Oil was first thought to be discovered in the state of Louisiana in 1868 by the Louisiana Oil and Coal Company fifteen miles west of Lake Charles. However, the Louisiana Oil and Coal Company was unsuccessful at drilling oil but the company did find extensive sulfur deposits. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/) Oil was first discovered in Louisiana on September 21, 1901. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/)

The chart above shows a graphic comparison regarding the different gas prices at the two different Marathon locations. This graph shows a visual trend of each of the various gasoline prices. According to the data recorded, the gasoline prices at the Angola Marathon throughout the week were, on average, about fourteen cents more per gallon than at the Muncie Marathon. The prices of gasoline at the Muncie Marathon declined, on average, about four cents per gallon per day throughout the week. While the gas prices at the Muncie Marathon continuously decreased each day, the gas prices at the Angola Marathon varied each day. Within the first three days, the gas prices at the Angola Marathon decreased about two and a half cents each day, on average. On the last day data was recorded, the trend at the Angola Marathon was reversed, and the price of gas increased by one cent.

Supply and demand is best describes as the varying of prices of a specific service, product or commodity and the desirability for consumers. In theory, the supply and demand model works best for markets that are normally in perfect competition. Now in order for this desired market to work, there has to be a numerous amount of sellers and a numerous amount of buyers that have no real or major impact on the pricing of goods and services. In the follow essay, we will receive a better understand on what the supply and demand really is, further discuss a brief historical perspective on the supply and demand in comparison to the fickle prices of gasoline, go into detail about government involvement in gasoline prices, and finally examine how the supply and demand of gasoline is applicable in our everyday lives.

As the prices of fuel increase nationwide, it isn’t only the local residents that feel the pinch of higher fuel prices. Those responsible for fueling ambulances, fire engines, and police cars are also battling the soaring transportation costs.

The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the

The consumer plays a very large role, as two-thirds of U.S. oil consumption is accounted for by the transportation sector.

The topic of this paper is Gasoline prices and potentially higher state sales tax. According to Stephen Singer’s article (2017, August 24); Connecticut legislators are deciding to raise the state sales tax and gas prices from its current rate to 6.85% to close a budget gap that’s predicted to reach $3.5 billion over two years to help lower state aid cut to towns. I disagree with the decision the legislatures of Connecticut are making to fix a budget gap with higher taxes on retail products and gasoline prices because increasing the prices of these products with higher taxes would increase the price of consumer goods and services. According to the law of demand and the law of supply, when there is an

First of all, it is very obvious that if the prices go up for something, then people who do not have as much money are going to struggle. If the prices go up for gas then the non wealthy people will probably have trouble finding money to pay for their gas in their cars. Not only will they struggle with paying for their gas, they will have distress in paying for their house and their bills. Imagine living in a governer house with a few kids and a wife or a husband. Then all the sudden the gas prices go up about one dollar! That family would not be happy at those changes. Then if they found out that the government increased the prices only to reduce consumption, then they would definitely be in rough scenario.

When the market became smaller, the demand of gasoline decreased. This caused the demand curve shift to the left. And then, the new equilibrium generated. The price would decreased.

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

The price increase of gasoline will impact the consumer and producer surplus. The area between the demand curve and the price line for the quantity of gasoline sold provides the consumer surplus. The consumer surplus decreases when the

We need oil because it burns to produce energy. We use it to run a vehicle, to heat a building, and to produce electric power in a generator. My family use it for our car which is important because our car gets us to school, my mother to work, and my sisters to their school activities. Oil is also used as a raw material to create products such as plastics, and hundreds of other intermediate goods. Those goods include; paint for houses, carpets, trash bags, and tool boxes. Some other materials that are made from oils are hair coloring, nail polish, shampoo, and vitamin capsules. One of the main types of oils we use everyday is gasoline. Gasoline is the main petroleum product consumed in the United States. Another type of oil consumed is distillate fuel oil, which includes diesel fuel and heating oil. Diesel fuel is used in the diesel engines of heavy construction equipment, trucks, buses, tractors, boats, trains, some automobiles, and electricity generators. Heating oil, also called fuel oil, is used in boilers and furnaces to heat homes and buildings, for industrial heating, and for producing electricity. Hydrocarbon gas