The war has helped to make the cost of oil go up, because we are at war with Iraq and that is where we get our oil. There is a shortness of oil and with this the cost of oil will go up, so will the cost of living, and the cost of fuel. Across the United States individuals are feeling the high prices of gas and oil prices. These prices are starting to hurt our economy because people are not being able to travel as much as they used to be able to. Families are feeling the hurt when they do travel because when people go to go camping with there children it costs more in food then they had in there budget and same with fuel.
This epidemic is a strong battle between the consumers and oil companies. Oil companies think that the... ... middle of paper ... ... bringing in record profits almost every year. This only proves how much of a scandal this epidemic is. The whole issue is solely based on oil companies? exploitation of a situation.
The terrorist attack on the World Trade Center in 2001 was a devastating day for America’s oil industry. Oil prices skyrocketed and fear was put in America. In his article “Take $10 off the Price of Oil,” Steve Hanke states that from 2001 to 2004 oil prices more than doubled reaching $55 per barrel due to Bush’s order for the government to purchase 700 million barrels of oil that caused prices to rise from storage cost. On top of this, oil prices were high to help preserve the oil supply because the nation was afraid oil imports from the Middle East would come to a halt. The September 11th tragedy was not the only time America suffered with high oil prices.
For example, many families cutting back in a necessity like food, health insurance and even going out for some time. Gas prices effect the middle class, also affects people in steady incomes like senior citizens. Second, inflation prices are going up, because of the gas prices high it effected everything a round from goods and services. Goods and services depend on gas for transportation and moving the goods from place to another. Services are going up due to higher cost of the gas.
The crisis is a nationwide energy discontent in which natural gas rates have soared to the highest level in 15 years, and OPEC has slashed its oil output again to keep prices up. Most Americans know they are the ones who are mostly to blame for the energy crisis. Americans' greed drives us to demand more space and privacy, more power and speed, and more comfort and ease. Satisfying these demands requires the burning of more fossil fuels. Due to the large amounts of energy that Americans use, the demand for more energy resources are becoming low.
The recent surge in the cost of heating oil, diesel fuel, and gasoline in the United States has had significant impact on many sectors of the U.S. economy, but most importantly it has had quite a devastating affect on the trucking industry. This is important due to the fact that nearly “70% of U.S. communities rely solely on trucking for their supplies” (“ATA” 23). If the government continues it’s trend of non-intervention and refuses to place pressure on OPEC, the prices will continue to soar well over the two-dollar mark, and cause the trucking industry as a whole to shut down bringing the U.S. economy to a grinding halt. What is the reason that gasoline and fuel prices are so high? Most people believe it is because of OPEC raising the price of oil.
The vicious circle of the economy in the United States has been revolving for a long time. With the economy in a bad place and importing oil from foreign countries, oil prices will rise. Since Americans rely on oil too much they have to pay for the oil, and when oil prices rise Americans pay more for what they used to get for a dollar a gallon. Not only do Americans pay more for oil, but companies do as well, causing increased prices for everything. The cost of driving your car to work and mowing the lawn will skyrocket.
Over the last five to seven years, the American people have had to pay outrageous prices at the gas pumps, wildly fluctuating from under $2.00 a gallon or less to paying $4.00 a gallon or even higher for gasoline. This issue of paying unreasonable and unpredictable prices at the pump comes from the higher prices of oil. Most will say that oil prices fluctuate so because of conflicts in the Middle East or due to shortages of oil, but the simple reason of the oil prices go up so high is because of oil speculation. Oil speculation is the single greatest problem of higher gas prices further causing more economic problems and compounding living for the middle and lower class individuals and families. The economical truth is that speculation is not a necessary thing.
The current crude oil price spike began early in 1999 due to a variety of factors. Struggle in the Middle East along with minimal policy changes from the Organization of Petroleum Exporting Countries and the U.S. Government has kept prices high to this very day. The History of Oil Crisis Within the United States Before looking at the current oil situation, it is important to understand the times of oil crisis in our country?s past. Through the years between 1970 and 2000, the price of oil has risen and fallen in often-drastic amounts. It is these price fluxuations in crude oil that has caused fuel prices to vary and the economy of the United States to be volatile.
Energy Crisis Interrelated to Global Warming. Photovoltaic Cell – A Possible Solution Abstract- The world’s energy crisis has worsened in recent years, as oil prices dramatically increased due to the limited amount of available oil. Global warming is considered as a byproduct of energy crisis, because as oil continues to burn in the refining process, CO2 is constantly emitted to the atmosphere at a fast rate and in heavy concentrations, which in turn, worsens the global warming situation. Photovoltaic cell technology converts sunlight into direct current electricity. This source can be a possible solution to solve the energy crisis as well as the global warming issue.