preview

Essay on Rising Gas Prices in the United States

Decent Essays
Once upon a time Americans hopped into their cars on warm spring days and took long drives to admire the beauty of nature. Teenagers took joy rides around town to meet friends and rode from one “hot spot” to another. Those were the days when gas prices were affordable to the average American. Over the past few years, gas prices in the United States have been on the rise. What is causing the increase in gas prices? To understand the increase in gas prices, one must first identify the distribution of dollars paid per gallon at the pump. According to the U.S. Energy Information Administration (eia) in 2010, the annual average paid at the pump consisted of 68% crude oil, 7% refining, 10% distribution and marketing, and 15% taxes…show more content…
In response to the rebellion, Gadhafi has amassed a military force that includes regime supporters and hired mercenaries to fight against the rebels. This has caused an upheaval all throughout Libya’s oil industry causing turmoil within the National Oil Corporation (NOC). “Along with smaller subsidiary companies, the NOC accounts for around 50 percent of the country's oil output.” (Reuters) In addition, major foreign international oil companies operating in Libya have evacuated employees. These companies include Eni, StatoilHydro, Occidental Petroleum, OMV, ConocoPhillips, Hess Corp, Marathon, Shell, BP, ExxonMobil, and Wintershall, a subsidiary of chemical company BASF. (Reuters) Meanwhile the North Atlantic Treaty Organization (NATO) has decided to enforce the no-fly zone over Libya and protect citizens. As the United States, United Kingdom, and France prepared for action against Libya under the U. N. resolution, the cost of crude oil per barrel rose to $103.66. (Press) The United States launched cruise missiles against Gadhafi’s military forces. Missile strikes as well as Gadhafi’s own land attacks have halted Libya’s oil production and exportation. “The International Energy Agency (IEA) said that while the rebellion against Libyan leader Moammar Gadhafi continues, "what is becoming clearer is the country's oil production and exports could be off the market for many months due to
Get Access