StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Gas prices - Essay Example

Comments (0) Cite this document
Summary
America's lifeline is gasoline. It is observed that vehicles for personal use alone consume 65 gallons of gasoline and diesel fuel annually. This number is believed to enhance by 2.6 percent every year. The galloping prices of gas are down one month and shoot up next before escalating to over 30 percent…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
Gas prices
Read TextPreview

Extract of sample "Gas prices"

Download file to see previous pages (How Gasoline Works)
The economy of the United States has witnessed four major shocks in connection with the oil price which occurred during 1973-74, 1979-80, 1990-91, NS 1999-2000 with a time span of 25 years. There was a unanimous view among the analysts that holding of energy independently would be the pivotal factor for designing a relevant National energy policy. If higher energy efficiency is mastered the aftermath of the oil price shock on the economy can be controlled. This effect has been proved for the year 1999-2000 where the oil price shock had a negligible effect on the economy when compared to the recent past. The candidates for the presidential campaign brought to light the necessity for greater American energy independence and expressed the idea of less dependence on oil import. Even though the United States has a hold to effect the gas price, it is to be understood that the market is not national but international. The American energy policy proves to be relatively undeterred force of supply and demand which allowed constituting the prices for various energy sources. The public consumption of the energy source is also effected through this policy. The prices that are thought to be particularly sticky are wage contracts, publication subscriptions and items from catalogues. (Labonte; Makinen, 2000)
The totally market based national energy policy argues that the market prices may blend all the relevant costs to the individual it may exempt the cause that are relevant to the nation. It is important to note that the prices may fall short to bring in a premium that would counteract any unwarranted foreign influence on the foreign and domestic policies of the United States. In the end, since the oil supply shocks are fickle and less anticipated market prices can soar high when they occur. So when this jerk disrupts, as in the past, it will have a considerable effect on Gross Domestic Product -- GDP, employment and inflation. Oil being an inevitable ingredient in the production and transit of most goods, naturally an oil price hike will affect the cost of production for the producers. This effect will also be shunned by products which use supplementary energy sources since those prices would have also experienced a hike. Thus the supply shock decreases an economic output and increases the price level in a short run.
If there is flexibility in the prices then the producers could reduce input prices such as wages excluding the total output and total price level. Only then, there would be no decline in output or hike in the price level. But when sticky prices persist then producers have no other alternative than to lower the rest of the input prices quickly which would result on a price hike that would affect the consumers. The consequence would be the rate of output is lowered as people decide to buy fewer goods, the prices being higher. Price of labor would be compensated with some employers signed off. So with fewer workers, only a lesser output is produced, so a rise in the price of oil and the inefficacy of other prices to accommodate temporarily results in the reduction of the rate of growth of output that is produced by an economy. (Labonte; Makinen ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Gas prices Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Gas prices Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/miscellaneous/1511718-gas-prices
(Gas Prices Essay Example | Topics and Well Written Essays - 1000 Words)
Gas Prices Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/miscellaneous/1511718-gas-prices.
“Gas Prices Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1511718-gas-prices.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Gas prices

Why are gas prices inflated

...to the consumption. b. Citigroup reported that in May 2006, it noticed close to 120 billion USD in US commodity markets. A survey in the market found that 30.3 billion USD in natural gas, 30.1 billion USD in crude oil and 13.3 billion USD in gold was the realm of speculative positions in the commodity market. (Committee on Homeland Security) Goldman Sachs state that natural gas prices is also affected by crude oil prices. Speculators contributed to roughly 7 USD per barrel in 2004. During this period crude oil prices were in the range of 35-40 USD per barrel. Thus speculators had managed to boost the oil price by about 20%. (Committee on...
27 Pages(6750 words)Essay

Gas prices

...of the modern age life style. In the contemporary age, there is massive consumption of gas even on the domestic level. We use gas heaters, gas ovens, gas stoves, and gas lamps. In addition to the in-house consumption of gas, a vast majority of vehicles on the roads use gas as a secondary fuelling source that works as efficiently as petrol does. The voluminous increase in the use of natural gas does not accord with its declining natural reserves. There is an inverse relationship between the two. Gas prices have risen almost all over the world in the past few years. Much...
2 Pages(500 words)Essay

Proposing a Solution on Gas Prices

... alternative solutions that can be used to save money on gas. The optimum solution identified was to purchase a green vehicle. All the solutions have their validity and could be used by different people depending on their circumstances. As we move forward in the 21st century there going to be more electric vehicles models in the marketplace and their prices are going to go down as the demand for these vehicles increases Work Cited Page Gasbuddy.com. 2011. “Local Gas Prices in the USA.” 28 April 2011. Nissanusa.com. 2011. “Nissan LEAF” 28 April 2011. ...
3 Pages(750 words)Essay

Gas Prices: Data Analysis Using Descriptive Statistics

... the prices in California are exceptionally higher that the other regions because of the lack of supply sources of the special blend of gasoline required in the State. The five regions identified by the U.S. Department of Energy are the East Coast, Midwest, Gulf Coast, Rocky Mountains, and West coast regions, all of which encompass a specific number of states in the region. Data from the U.S. DOE indicates that historical gasoline prices for the last three weeks can be presented according to the following table. Gas Prices According to Region (U.S Energy Information Administration, 2011) Date Region 9/5/2011 9/12/2011 9/19/2011 East Coast 3.639 3.632 3.586 Mid West 3.711 3.683 3.575 Gulf Coast 3.494 3.472 3.412 Rocky Mountains 3.575 3.597...
3 Pages(750 words)Research Paper

Oil and Gas Prices

...Oil and Gas The price of oil has constantly fluctuated through the years, but never more so than in the past ten years. This erratic trend has caused many changes to the economic and political climate. The prices of commodities have also fluctuated because of oil price changes. Political tensions between and among countries can trace their origin to oil price fluctuations. In some instances, these tensions have resulted to actual conflicts and show of arms. And in other instances, it has potentially created fodder for wars and violence. This paper shall discuss the thesis that worldwide conflict is the cause for the constant fluctuation of oil prices. History has been riddled with many incidents of oil price increases due...
6 Pages(1500 words)Essay

High Oil and Gas Prices

... Hurrican Katrina and Rita, also caused oil prices to rise (Matthews 1). Works Cited Jeffords, James M. “Clean Air Regulations and Natural Gas Prices.” Congressional Testimony,. MAS Ultra - School Edition, 2006. Web. 16 Sep 2011. . Liveris, Andrew. “Natural Gas Supply and Prices.” FDCH Congressional Testimony. MAS Ultra - School Edition, 2005. Web. 16 Sep 2011. . Matthews, Dan. “Mitigating Impact of High Gas Prices.” FDCH Congressional Testimony. MAS Ultra - School Edition, 2005. Web. 16 Sep 2011. Gas Prices There are various potential causes of rising oil prices around the globe and since crude oil prices make up a huge percentage of gasoline...
1 Pages(250 words)Essay

Rising Gas Prices by Jeremy W Mattson

... Natural Gas Prices and Real Economic Activity, a computer numeric data file by Ann Arbor, Mich. : Inter-university Consortium for Political and Social Research [distributor], 2006.  The destruction caused by the hurricanes Katrina and Rita widely affected the natural gas prices. Because it is an important energy source, the prices of natural gas rose to record-high levels. It was assumed that high prices would directly affect the economy. The analysis presented in the file suggests that it did affect the economy but only some manufacturing units and sectors in comparison to the increase in the prices of crude oil. The role of market speculation in rising oil and gas prices: a need to put the cop back on the beat: staff report by United...
2 Pages(500 words)Article

The Issues on Rising Gas Prices

...Shaderricka Huff Ogden ENC 1101 M/W 9 November Rising Gas Prices Introduction Gasoline prices have increased dramatically throughout the years in the United States. Since gas is an essential item in today’s society, I argue that gas prices should have a maximum limit. Gas prices should only be able to reach $5.00 per gallon at the highest for Regular, $5.40 for Premium, and $6.00 for Diesel. In today’s society, gas prices are too high with the status of the United States economy. Gas prices increase daily with an average of about $0.02 a day. Unfortunately, gas continues to increase more and more each day. The gas we intake into our motor vehicles is not even 100% gasoline. Within our gasoline there are contents of ethanol, therefore...
7 Pages(1750 words)Research Paper

Causes of increasing gas prices

...? Is it merely supply and demand issues, or are there other factors that are influencing the rise in gas prices? Purpose of the Paper This paper has the general aim of being informative of the causes of the rise in gas prices. However, within this general aim, the paper has a specific purpose in trying to uncover that the rise in gas prices is not merely caused by supply and demand issues. Factors Involved in Increasing Gas PricesGas prices in the USA are linked to international oil prices, as the cost of oil constitutes 70% of the cost of a gallon of...
4 Pages(1000 words)Essay

Lower Gas Prices In America

...to $2.77 on Monday, this is according to the auto club AAA analysis. The drop in prices should be a key boost in an era when growth abroad is faltering even though it may curb investment in the expanding energy sector. According to the IMF chief on Monday, she said that the falling oil prices will be of help in boosting the economies in the U.S and across the world. Lagarde also projected the U.S economy to grow at a 3.5% rate as at next year (Timiraos, 2014). The lowering of gas prices in America means that the people will have more to spend. It is apparent that Americans will have a bounteous Christmas due to the Saudi discounts from crude oil at a time of falling...
2 Pages(500 words)Essay

History of Gas Prices and their Effect on the Economy

The relation of inflation within a society with the ever-changing oil and gas prices is pretty much significant and one must understand that there is a strong bond present between the two. This strong linkage allows for prices to shoot up whenever there is a sudden upward trend experienced in the oil and gas prices and whenever the gold rates have increased on the global front. With so much at stake and economies coming to a standstill with the uprising trend in the oil and gas prices on a global level, one can only expect problems coming to the fore of the common man and woman present on the street. The worst possible explanation given by experts in the field of oil and gas prices’ regimes is that these are done to benefit...
9 Pages(2250 words)Coursework

Provisions for Gas, Electricity, and Water Markets

... to wholesale markets. Three major problems arose in introducing competition into the gas market: 1. Permitting equal access to the network 2. Avoiding price discrimination 3. Ensuring that gas supplies were available to newcomers Access pricing, network separation and unbundling In a vertically integrated network utility, access pricing is a key issue. To consider the access pricing problem The underlying problem that was identified when attempting to introduce competition into the gas industry is that, in any regime in which the owner of a common facility that competitors must use to take their product to market also sells the product to consumers (and produces it as well), the conditions for effective competition cannot exist...
9 Pages(2250 words)Report

Oil Prices by OPEC and Market Fundamentals

Market failure is defined as the inefficient allocation of resources by the market, the free market is considered to optimally prices and resources in the production of goods and services, and this is because the price and quantity produced are determined by market forces which include the demand and the supply. The control of prices by a firm or an organization in the market results in market failure, therefore OPEC leads to market failure due to its nature in the market.

OPEC was formed in 1960 by 5 oil-producing countries which include Venezuela, Saudi Arabia, Kuwait, Iran and Iraq, The aim of this organization was to unify petroleum-producing countries in order to realize fair and stable prices of oil .other oil-pro...
6 Pages(1500 words)Report

The Bhopal Gas Disaster

In the incident, a toxic gas called methyl isocyanate (MIC) weighing around 42 tonnes was released into a city with a population estimated at 500,000 people. The incident was devastating: the immediate death toll was 2,259 people. Generally, it is estimated that 8,000 people died in the first two weeks and more than 8,000 died later from gas-related complications. It is believed this is the worst industrial incident of the recent past.
The Union Carbide India was a company that produced carbonyl pesticide, which is an intermediate product of methyl isocyanate. The methyl isocyanate is a toxic material but cheaper compared to other raw materials that could have been used. However, the chemical involved in this incident was a c...
7 Pages(1750 words)Case Study

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages(5000 words)Literature review

Relationship between Monentry Policy and Asset prices: Evidence from UK and US

...Relationship between Monetary Policy and Asset prices: Evidence from UK and US Introduction Asset costs as dictated by market patterns are a sensitive indicator of economic performance at various economic times. Economic interventions are formulated to control economic performance factors and instigate economic protection in times of uncertainty. One of such interventions is the monetary policy which targets money circulation and supply within the economy and is aimed at instilling economic stability as well as economic growth. Market patterns have various observable changes in the economy one of which is inflation, which is represented by increases in prices of goods, assets and services during a specified period of time. It is usually...
8 Pages(2000 words)Literature review

Oil and Gas Exploration Prudent Development Through Environmental Awareness

...U.S. Oil and Gas Exploration Prudent Development U.S. Oiland Gas Exploration Prudent Development Introduction Awareness regarding the significance of environmental issues is currently central to the thoughts of the oil and gas industry, as well as regulators. The integration of the environment and development is the theme of many stakeholder meetings between environmental agencies and oil and gas industries. International bodies are also part of this conversation; for instance, the United Nations Environmental Program headquartered in Kenya held a conference in Rio in 1992. Part of the declaration principles pointed to the fact that sustainable development is solely dependent on environmental protection. Such declarations aim...
7 Pages(1750 words)Literature review

Gas Release Evacuation Plan

...Gas Release Evacuation Plan In most industrial and transportation accidents, hazardous gases may often leak into the environment in such quantities or proximity to individuals that necessitates evacuation of the employees to safer grounds. Although there are a number of universal procedures that must always be followed, the type of gas release evacuation plan usually depend the size of the workforce and availability of onsite resources. This report proposes an evacuation plan that should be used in the event of a gas release. Gas Release Evacuation Plan Introduction The effectiveness of a gas release plan depends on the coordination of the occupants of the affected area. Generally, both the employees and the employers within...
9 Pages(2250 words)Term Paper

Sources of Air Quality Pollutants and Greenhouse Gas Emissions

...A Case Study of Sources of Air Quality Pollutants, Greenhouse Gas Emissions and Associated Action Plans at Bootle Docks Throughout the United Kingdom a standard of eventual compliance with other nations of the European Union in a framework of environmental modernization with respect to air quality and pollution controls are being implemented. The modernization strategy is occurring across the continent in order to avert environmental consequences with negative repercussions for both human health, and the climate at large. Across Europe, an initiative is taking place to begin a gradual shift towards emissions standards dependent upon a reorganization of current patterns of urbanization (Ekins & Lees, 2008), as well as technological...
17 Pages(4250 words)Case Study

Sustainability in Gazprom Gas Production

...Sustainability in Gazprom Gas Production Executive Summary The energy sector has attracted a lot of controversy as a major source ofgreenhouse gases that result in global warming. Gazprom is a leading generator of gas in Russia and has been extensively involved in sustainability measures to ensure that the company produces low-carbon gas. The EU, as the largest market for natural gas is highly liberalized thereby setting a strategic market for Gazprom to open its market to global gas users. By 2050, Gazprom seeks to be the leading producer of natural gas and importer in the EU region. This is following the current market trends which show that there is an increasingly high number of gas consumption the globe that is likely to increase...
8 Pages(2000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Gas prices for FREE!

Contact Us