Effect of Oil Refineries in the US Economy - Research Paper Example

Effect of Oil Refineries in the US Economy Insert Insert Annotated Bibliography Beaton, K. (1957). Enterprise in oil. New York: Appleton-Century-Crofts. In this book of enterprise and other ventures undertaken in oil production, Beaton tries to show how the production of oil and oil refinery has led to the economic growth in the USA. He gives the analysis of how the various oil products such as gasoline, diesel fuel, asphalt base, kerosene and heating oil among others have led to an overall increase oil enterprise. He describes the economic impacts of oil refinery to the USA economy, which has made the US emerge the top leading economy of the world. He suggests that the government of United States should come up with other means such as subsidies and tax reliefs to those investors who want to engage in the oil enterprise. His books and ideas have been taken into account by a number of scholars and other policy makers in the process of empowering investors in this particular industry. Burger, J. (1994). Before and after an oil spill. New Brunswick, NJ: Rutgers University Press. Burger, in his book; Before and after an oil spill, compares the past economic condition in the USA to the current state after the discovery and emergence of the different oil refineries in the United States of America. He shows that the discovery of oil and the refinery processes of oil in the USA had lead to the establishment of various factories manufacturing oil and producing various products of oil refinery. He addresses the resultant production of the oil products gives rise to backward and forward linkages, where other companies are emerging to use these products while others supplying the refinery factories with inputs. He believes that the rise in the contracting companies can get rooted from the emergence of different demand by these refinery factories leading to creation of business opportunities, hence the contracts. Cashin, P. (2012). The differential effects of oil demand and supply shocks on the global economy. [Washington, D.C.]: International Monetary Fund. In his book; The differential effects of oil demand and supply shocks on the global economy, Cashin gives a deep analysis oil demand and supply in the United States of America. He analyses some of the factors that have led to a growth in the demand of oil and petroleum as the major reasons that have given rise to the growth of oil refinery industries. Among the possible cause of demand, he talks of the increase in the automotive usage and other industrial demands for oil products. He outlines how the increasing demand of oil products in the United States of America has impacted on the oil demands by other countries. This in turn has made The United States to emerge as an oil products supplier, and therefore the establishment of various oil refinery factory and the expansion of this particular industry, as a whole. Henry, J. (1965). The early and later history of petroleum. New York: B. Franklin. In this book of history and analysis of the discovery of oil; The early and later history of petroleum, Henry tries to analyze the different economic impacts that have gotten realized. Thisimpacts are as a result of oil exploration in America, which has seen the United State’s economy growing tremendously reaching greater heights. He gives an analysis of the original level of gross domestic product, gross national product as well as the per capita income level in the United States. He compares the different periods; during the time of oil and petroleum discovery in United States and the current time of its manufacturing, by looking at the measurement tools of national income standards. He made use of gross domestic product, gross national product as well as the per capita income level in showing the economic impacts of oil production in USA. Hollar, S. (2011). The Environment. Britannica Educational Publishing. In this book of environmental concerns, Hollar has raised a number of issues concerning the environmental threats that oil production emits to the economy of the United States. He looks at the high rate of industrial effluents that get discharged to the water bodies such as rivers, lakes, oceans and seas, resulting to water pollution. He gives an analysis of the effects of water pollution which has in turn threatened the aquatic life of the marine and other sea creatures. He elaborate on the effect of carbon dioxide emission in the atmosphere which results into the formation of acidic rain. The acidic rain formed leaches the soil, killing living microorganism responsible for soil aeration, and general nutrients supply. He also talk of the acidic rain corroding the iron sheets and other metallic surfaces, in the economy of the United States. Mayhew, A. (2008). Narrating the rise of big business in the USA. London: Routledge. In this book; Narrating the rise of big business in the USA, Mayhew has come out clearly in expressing his view on how the economy of the United States has undergone significant change. This is in relation to the time horizon between the period of emergence of the oil refinery and the oil industry as a whole and the current state. He analyzes the current state which has numerous oil refinery factories forming the oil industry in the, which has in turn resulted into backwards and forward linkages. In the case of backward linkages, he talks of the rise of other big business enterprises and organizations which emerge with the prime reason of supplying these refinery factories with inputs. These inputs are needed for the manufacture of oil products, as well as other petroleum outputs, ranging from gasoline, diesel fuel, asphalt base, kerosene and heating oil among others. Neimark, P., & Mott, P. (2011). The environmental debate. Amenia, NY: Grey House Pub. In his book of the various debates arising from the environmental impacts of oil and petroleum production, Neimark gives a deep analysis of both the positive and negative externalities of oil manufacturing in the USA. He makes a comparisons between these externalities as well as comparing the impacts they bring to the economy and finds the better option to chose from. In his analysis, some of the positive externalities rising from oil refinery include economic impacts ranging from job opportunities, technology and contracts and business opportunities. Others include growth of wealth and infrastructural development, while negative externalities include environmental impacts such as air and water pollution, ozone layer depletion and global warming. He relates the externalities of oil refinery processes to the well being of the economy and on the other hand, its demerits to the environmental threats. He gives a general recommendation that part of the income realized from oil refinery processes by the United States’ government should get allocated to take care of the negative environmental outcomes. Ocic, O. (2005). Oil refineries in the 21st century. Weinheim: Wiley-VCH. In this book of the analysis of oil refineries and the general oil industry of the 21st century; Oil refineries in the 21st century, Ocic has given a clear description of 21st century and oil production. He has analyzed the different stages of oil refinery form the process of its crude nature, until when the different products are produced. He talks of both the positive and negative impacts that oil production and manufacturing has brought to the economy of the United States. In his book, he describes the positive impacts of oil production and manufacturing to the economy which includes economic impacts ranging from job opportunities, technology and contracts and business opportunities. He further describes other positive implications to the economy which include growth of wealth and infrastructural development. Among the negative impacts of environmental concerns, he dominates on the environmental challenges resulting from oil production. These includes as air and water pollution, ozone layer depletion and global warming. Pelletiere, S. (2004). Americas oil wars. Westport, CT: Praeger. Pelletiere, in his book; Americas oil wars, explains some of the resultant forces of demand and supply of oil in the United States of America, and their corresponding outcomes. He believes that the high demand of oil in the US is resulting from the increased domestic and industrial increase in oil consumption. In the domestic sectors, there is high demand of oil to meet some oil requirements in executing domestic activities. In the case of industrial sectors, he talks of the high oil demand which resulting from the increased use of locomotives and other machines which requires oil products in their maintenance and usage. He talks of the overall demand for oil and petroleum products which has further led to increased prices of oil products in the American nation. The increased pricing and the oil wars has therefore made the United States government to support efforts by the private investors in getting involved in the oil refinery enterprise. Simon, S. (2010). Global warming. New York: Collins. In this book of environmental concern and awareness; Global warming, Simon, illustrates some of the health hazards realized from the various factory emissions to the atmosphere in oil refinery industries. In his analysis, he based his arguments and facts on the global warming which results excessive penetration of ultra violet rays due to ozone layer depletion. He argues that increased industrial emissions of CO to the atmosphere has further led to the depletion of the ozone layer, permitting a lot of ultra violet rays (UV), penetrating and reach the earth’s surface. The increased levels of solar radiation due to the excessive penetration of the UV has led to increased warming of the earth’s surface, global warming and other diseases such as cataracts. The US government has been forced to shift part of its expenditure to carter for these diseases and other environmental hazards resulting from the increased solar insulation (Simon, 2010). 0 Introduction The increasing demand for oil refinery products such as gasoline, diesel fuel, asphalt base, kerosene and heating oil among others have led to an overall increase in the establishment of new refinery plants (Beaton, 1957). This is a result of the increasing population consumption of these products in industrial and domestic usages, ranging from locomotives, and factory machine among other machineries. In this essay paper on environmental studies, I am going to discuss the local refineries impact in the USA economy, as well as providing annotated bibliographies for the same. Economic Effects The establishment of various oil refineries plants in the USA has seen the US economy over the last five decades change positively; by growth (Mayhew, 2008). This has been as a result of improvement in some of its macro economic variables such as taxation, consumption levels, government expenditure, exports, imports and investments levels. The growth in these macro economic variables has in turn led to increased job opportunities, emergence of various concerns, technology, contracts and business opportunities, wealth and infrastructural development. i) Job Opportunities and Investments The various local refineries in the US have led to the creation of many job opportunities that have seen a high population of the US getting absorbed for employment purposes. A lot of graduate from different engineering schools and institution have found themselves working for a number of this factories, getting salaries and improving their standards of life (Pelletiere, 2004). These refineries, through proper management, have gotten in a position to realize profits and making other further investments. This has in turn led to the growth of the economy due to high investment levels earning the US government revenues inform of corporate tax, among, others. The employed workers also pay taxation to the government in form of PAYE leading to the overall increase in government expenditure, aggregate demand and supply from the government, employees and these industries (Henry, 1965). ii) Technological Advancement The rise of the oil industry in the USA which resulted to increase in the number of oil refineries have resulted to technological increase in the economy. The increased demand has resulted to increased levels of innovation and invention leading to general technological dynamism resulting to technological advancement. Improved and innovative ways of mechanization in the refinery plants have been initiated leading to an overall increase in the oil products and quality improvement (Patrick & Durndell, 2004). The new technological skills initiated in this industry has in turn led to emergence of new locomotives with modified technologies for the prime purpose getting compatible to the new products from the industry. As a result of this, over the last three decades, the US has found itself manufacturing different locomotives consuming a range of oil products from gasoline, diesel fuel, asphalt base, kerosene among others. iii) Contracts and Business Opportunities The rise of oil refineries industry in the USA has let to an overall increase in contracts and business opportunities in the US economy (Cashin, 2012). Different contracting companies have emerged for the purpose of securing different tenders advertised by these factories, ranging from building and construction, office repair and maintenance, supplies and procurement contracts among others. The rise in the contracting companies can get rooted from the emergence of different demand by these refinery factories leading to creation of business opportunities, hence the contracts (Burger, 1994). These new business contractual agreements and tenders by the established companies give rise to creation of employment opportunities which in turn absorb the unemployed citizens in the USA. The new income received by the employees in this contracting and tendering firms later lead to growth in the aggregate demand and supply, increase in the tax base, hence a general economic growth and development. iv) Infrastructural Development The general rise in the number of oil refineries in the US has led to improvement of the already existing infrastructure as well as growth of the general infrastructural levels in the US economy. The increased output levels realized by this industry have led to increase in the level of exports on oil products by the US to the other parts of the world. Since the emergence of this industry, the US economy has realized construction of modern and most developed tarmac road, superhighways, others having dual and triple-ways systems. There transport system has realized improvement by the massive construction of railway lines and railway stations, airports and other marine and sea ports for the purposes of exporting the oil products (Ocic, 2005). The economy has realized an improvement in its financial systems due to the increased growth of wealth, control of inflation standards and the increased liquidity cash flow in the economy. A number of financial institutions such as banking systems and insurance systems, among others, have risen with the prime purpose of controlling the increased financial levels in the US economy. As a result of this, the US economy has gotten in a position to control its inflation rates to the most favorable level. This has later lead to an increased value of the American Dollar in the foreign exchange market, in relation to the currency of the other countries of the world. Environmental Impacts i) Pollution The increased number of oil refinery factories in the US has led to increased carbon dioxide (CO) emissions from these factories. This has led to high levels of environmental pollution due to this emission in the atmosphere, contaminating the atmospheric oxygen and among other valuable gasses such as hydrogen and nitrogen consumed by plants. The release of carbon dioxide in the atmosphere has led to the formation of acidic rain in the USA, corroding iron sheets among other items of metallic nature (Neimark & Mott, 2011). ii) Ozone layer Depletion and Global Warming The increased industrial emissions of CO to the atmosphere has further led to the depletion of the ozone layer, permitting a lot of ultra violet rays (UV), penetrating and reach the earth’s surface. The increased levels of solar radiation due to the excessive penetration of the UV has led to increased warming of the earth’s surface, global warming and other diseases such as cataracts. The US government has been forced to shift part of its expenditure to carter for these diseases and other environmental hazards resulting from the increased solar insulation (Simon, 2010). iii) Industrial Effluents The increased levels of oil refineries in the US have led to general increase in the industrial effluents discharged into the water bodies in and around the country. The discharge of these effluents into the water bodies have resulted into water pollution and threatening aquatic and marine life (Hollar, 2011). The US government, in turn, has been forced to shift parts of its expenditure towards treating the water bodies for the purpose of restoring the marine and aquatic life. Conclusion Most of the economies of the world have desired to realize improvements in various industrial sectors. The rise as well as improvement in the oil refinery industry in the USA has led to a number of economic impacts ranging from job opportunities, technology and contracts and business opportunities. It has also realized growth of wealth and infrastructural development as well as other environmental impacts such as air and water pollution, ozone layer depletion and global warming. In general, the growth of the oil refineries in the USA has made the nation improve in its economic status and emerge the world’s leading economy. References Beaton, K. (1957). Enterprise in oil. New York: Appleton-Century-Crofts. Burger, J. (1994). Before and after an oil spill. New Brunswick, NJ: Rutgers University Press. Cashin, P. (2012). The differential effects of oil demand and supply shocks on the global economy. [Washington, D.C.]: International Monetary Fund. Henry, J. (1965). The early and later history of petroleum. New York: B. Franklin. Hollar, S. (2011). The Environment. Britannica Educational Publishing. Mayhew, A. (2008). Narrating the rise of big business in the USA. London: Routledge. Neimark, P., & Mott, P. (2011). The environmental debate. Amenia, NY: Grey House Pub. Ocic, O. (2005). Oil refineries in the 21st century. Weinheim: Wiley-VCH. Pelletiere, S. (2004). Americas oil wars. Westport, CT: Praeger. Simon, S. (2010). Global warming. New York: Collins. Read More