The Economic Factors Involved with the Rising Price of Gasoline

The following article is regarding what is most important to everyone around us regarding the pricing for gasoline at the pumps. This is a topic that concerns most people on this planet, why are the prices for gasoline so high and is it regarding the greed of oil producing companies to continue to keep rising the gasoline prices as high as possible. We will discuss the many reasons why these fluctuating pricing keeps occurring within our world market. We will use the retail gasoline pricing between the

This article “Why the Price of Filling Up Has Been Going Down” written by Alan Neuhauser stated that back in 2012. The article analyse fighters with the Islamic State group have seized oil fields, huge swathes of territory and major cities in Iraq and Syria, threatening oil supplies. On normal situation, this is going to threaten markets as it is threaten the supply of oil. Despite of the global unrest the prices at the pump in US are currently at their lowest levels in the year of 2012. According to the article there are several reason which make the price of oil fall, but the main reason which is causing this is the less use of oil crude after the Labor Day.

The demand of gasoline has increased steadily over the last twenty years. In 1981 the U.S. averaged 6.5 million barrels of gasoline consumption per day. By comparison, in 2004 the U.S. averaged 9.2 million barrels of gasoline consumption per day. For most of this time period, gas prices stayed relatively the same. This is because the U.S. refineries increased their production to meet the demand and maintain the equilibrium price. Also during this same time period worldwide demand for crude oil increased 27%. Crude oil producers also increased their production to meet the demand keeping prices the same.

The United States consumes more than 25% of the world’s petroleum products which is a large percentage, considering only 3% of the world’s oil reserves are produced by the United States. Given the demand for petroleum products such as gasoline, understanding why Crude oil prices have skyrocketed in recent years, is not hard. According to the article “Ending America’s Oil Addiction,” the surge in crude oil prices can be reduced in large part to the simple concepts of supply and demand. (Cooper, 2008)

United States domestic production has nearly doubled over the last several years, pushing out oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Canadian and Iraqi oil production and exports are rising year after year. Even the Russians, with all their economic problems, manage to keep pumping. There are signs, however, that production is falling in the United States and some other oil-producing countries because of the drop in exploration investments. But the drop in production is not happening fast enough, especially with output from deep waters off the Gulf of Mexico and Canada continuing to build as new projects comes online. On the demand side, the economies of Europe and developing countries are weak and vehicles are becoming more energy-efficient. So demand for fuel is lagging a bit.

For example, the Intercontinental Exchange while oil prices have not been decided on by oil producers such as Niami refinery fires, Nigerian Pirates and global oil markets. The laws of demand and supply are also predicted by the increase and decrease in the prices of oil. Oil prices are driven by the increase in demand for oil which has limited or completely destroyed the gains for suppliers and producers. While the U.S still consumes more oil than any other country, it is evident from the increase in oil demand that developing countries such as China, India and Japan are driving oil prices higher by their continous growth in oil demand (Anderson, 1).

This research paper provides an overview on why there is oil price falling in the United States. It will examine the reasons that are influencing fall of oil prices. Additionally, the paper will seek to explore the effects caused by the fall of oil prices in the American’s economy.

In the 1970s, there were high gas prices, long lines and even a shortage just because the government tried to mandate a set price for gasoline. There were many gas station failures and many were very upset in the Middle East. This proves that the gasoline prices are best without the government’s control.

High gas prices can make you stop and think about your commute. See hybrid car pictures to see models that save you money.In May 2008, average gas prices in the United States approached, and in some places passed, $4.00 a gallon, shattering records. But this was nothing new to American consumers. May was a month of records that broke one after another, and that came on the heels of months of rising prices. And then the cycle continued, with prices eventually falling and then inching toward the $4.00 mark again in 2011.

United States, China and Russia are the top 3 producers of Oil shale in the world. Oil shale is important because of its usage and economical factor , It can be transformed or treated into diesel and jet fuels or petrol. Oil shale was deposited in the Songlio Basin(NE china) during the upper cretaceous period, representing an excellent hydrocarbon source of rocks.

During 2012 and 2015 gasoline prices have gone done to 2.00 and then went up to 5.00 a gallon that would be in California or big city's like that . A fuel efficient automobile like a high bird and electric cars, have been more popular now they have grown to be a 33.9 percent more popular in the united sates consumers have loved these cars because they can travel u to 100 miles between charges consumers have supported these vehicles since

The oil-rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was for many decades considered among the wealthiest nations in the entire continent. While having the largest proven oil reserves in the world has often proved a tremendous boon for Venezuela, the very black gold that has been the cause of its success has also proven to repeatedly be its kryptonite. Over half of the nation’s Gross Domestic Product stems from petroleum exports – which equates to approximately 95% of total exports. It is really not too hard to imagine what drastic consequences shifts in global oil prices could have on the economy.

In this text, I concern myself with the contents of two articles based on recent microeconomics issues. During the last two months, the price of gas in the U.S. has been on an upward trend. Taking into consideration recent happenings on the international scene, this trend could have been triggered by many different factors. The articles I make use of in this case discuss the rising oil and gas prices.

The US consumed 142 billion gallons of gasoline in 2007 and the tax applied on it is 18. 4 cents on one gallon. All around the US, there are around 162,000 retail gasoline outlets. With the price of crude oil hovering around $100 a barrel, it is no wonder that concern is growing about the gas prices being so high. After all, modern economies are kept moving by this lifeblood. For instance, in the United States alone personal vehicles consume more than 140 billion gallons of diesel fuel and gasoline per year.However, there are several factors that contribute to the gas prices being so high. Given below are a few of them. Increasing Demand for Oil One of the main catalysts for the incessant rise in gas prices has been one of the most

The topic of this paper is Gasoline prices and potentially high state sales tax. According to Stephen Singer’s article (2017, August 24); Connecticut legislators are deciding to raise 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 legislators of Connecticut are making to fix budget gap with higher taxes on retail products and gasoline prices because, increasing the prices of these products with higher taxes would “hurt consumers and would hurt retailers.” It would limit the amount of tax revenues generated by the tax and slow the economy activity.