Works Cited Since the September 11th incident it seems that energy prices have skyrocketed. Not long ago gas prices were a dollar seventy-five, but now it is almost four dollars a gallon. These days gas and energy prices seem to be a weekly topic on local and national news. Every time there is some type of fluctuation, it causes chaos, because it is probably a difference of ten cents and sometimes more. So that raise you received, just throw it right out the window because it is not doing anything for you except paying your energy bills and putting a petite more amount gas in your tank. People point fingers in every direction searching for a scapegoat of this epidemic. Who is truly to blame? Oil companies are to blame for the rising of energy prices. Energy consists of more than just fuel. It is your hot water, electricity, heat, as well as gas. All of these factors are considered energy sources, and the prices of them have significantly increased. "Energy supplies and prices are major economic factors in the U.S. and energy markets are volatile and unpredictable." (Glover and Behrens, Energy: selected facts and numbers) This just shows how important energy is to the United States, which makes sense that oil companies would attempt to overcharge and swindle us because the U.S. is dependent on it. Like the spoiled Americans that most of us are we use energy every day, and if all of a sudden we couldn?t access it things would be chaotic, for instance, the California blackout. Like most issues there is always two sides, just as in this one, and while oil companies ?observe? the energy price crisis, they blame the consumers. 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 rising of energy prices lie only in the hands of oil companies?not consumers. ?Each quarter of a year, oil companies see record profits.?(We Need Energy Independence, 19A) So every year oil companies are rich and getting richer at the expense of thinning wallets and shrinking bank accounts of consumers, who apparently, according to oil companies, are at fault for this situation. ?Exxon Mobil?s 2nd quarter earnings jumped 35% over last year, Royal Dutch(Shell gas) rose 34%, and Conoco Phillips 51%.?(Oil Companies Profiteering) It is obvious that if oil companies are making all this money at our expense, it only makes sense for them to be at fault because the consumers are not blame.
Energy Crisis (1970’s) states that the crisis officially began when the “Organization of Arab Petroleum Exporting Countries (OAPEC) reduced their petroleum production and proclaimed an embargo on oil shipments to the United States and the Netherlands, the main supporters of Israel.” They did this because of the United States providing support to Israel during the Yom Kippur War (Energy Crisis (1970’s)). Although it “ended in late October, the embargo and limitations on oil production continued, sparking an international energy crisis” (Energy Crisis (1970’s)). The United States presumed that a boycott would damage the Persian Gulf financially, however, because of the rise in the price of oil, it actually helped them (Energy Crisis (1970’s)). The price of oil actually shot from $3 a barrel to $12 a barrel. (Energy Crisis (1970’s)). This produced tremendous lines at gas stations, exorbitant gas prices, and people were told not to put up Christmas lights. Other countries that were affected could only heat one room in the winter (Energy Crisis (1970’s)). The American auto manufactures were injured as well while they were turning out large vehicles, whereas Japanese manufacturers produced tiny fuel- efficient autos (Energy Crisis (1970’s)).
Gasoline is one of the many conversation starters anywhere you go. People have different opinions on why gasoline prices are fluctuating at such a rapid pace. Some Americans have chosen a way of thinking towards the prices. Whether it be making up rumors or just plainly trash talking towards our government. You make ask yourself the same questions many economist do, why has the price of oil been dropping so fast? Why now? This a complicated question, but it boils down to the simple economics of supply and demand. Supply and demand means a relationship between how much of a particular product is available and how much of it people want, and especially the way that this affects the level of pricing. Now of course there would be a shortage of gasoline during the summer time when everyone is traveling
Arguments: America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil, at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future, considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%).
Pratt, Joseph A. “Exxon and the Control of Oil.” Journal of American History. 99.1 (2012): 145-154. Academic search elite. Web. 26. Jan. 2014.
...ut throughout the past two decades, the realization of folly has called for a step in a new direction. For our society to finally rid ourselves of this parasite the change would have to be very slow; it would have to start with putting the entire industry in the hands of the government. In this way the corporation owners would truly be penalized while the product would be safer and the country would benefit from the profits. Marketing to children, testing underage smokers, using money to avoid the law, manipulating nicotine and suppressing research are among many of the immoral practices of the industry. Although they are very numerous and diverse they all share the same motive: to get rich. Money has become more important than compassion in the minds of the industry’s players. The success of the industry is merely a reflection of its immoral practices.
In 2004, crude oil producers around the world expected a 1.5% growth in the world’s demand for crude oil. The actual growth rate was more than double the projections at 3.3%. This growth was due to rapidly industrializing of foreign countries such as, China and India. Therefore the lack of crude oil affected the supply of gasoline to consumers at the pump.
People need oil for daily life and work. Since World War II, oil had caused many serious problems in United States and throughout the world. Remarkably, economic and social problems were heightened by the emerging energy crisis. By 1974, the United States gained a third of its oil by importing from the Middle East.[ James Oakes, et al. Of The People: A History Of The United States (Oxford University Press, 2011), 881.] When the heavy war between Israel and Arabia erupted, the United States was not able to gain enough petroleum because it supported Israel. To show the dissatisfaction with the United States’ support to Israel, Arab members of the Organization of Petroleum Exporting Countries even raised oil prices. “Overnight, OPEC raised the price of its oil from $3 to $5.11/By ”[ Merrill, Karen R.. The oil crisis of 1973-1974: a brief history with documents. Boston: Bedford/St. Martin's, 2007, 22.] Not surprisingly, the United States was strongly affected by the oil shortage and the the high price of oil. Homes and businesses could not easily solve the serious problem. Drastic protests occurred in many states such as Arkansas, New York, and Florida because a huge number of drivers could not accept the high price of gasoline.[ Merrill, Karen R.. The oil crisis of 1973-1974: a brief history with documents, 1.] Transportation was decreased in order to use less oil. Faced to the great challenge, several presidents analyzed the seriousness about the oil crisis and provided effective ways of reducing the use of oil.
the gas prices unfairly in order to make a bigger profit. It's true, gas prices
According to the website of Oil-Price, today’s value for a barrel can be bought at the price of $41.25 this means that oil is not demanded as much as it used to be over the years, because of the awareness of the environment and also because it is a cyclical phenomenon, there’s no actual reason, but the price will eventually rise again. Since oil is used to produce gas, it would come with surprise if the price of gas is low since the oil cost are also low. Gas prices depend on oil costs and oil costs depend on
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 (see Fig.1). This shows an increase of crude oil over the 2000-2009 average of 51%. (e. I. Administration)
" Oil is the life blood of our modern industrial society. It fuels the machines and lubricates the wheels of the world’s production. But when that vital resource is out of control, it can destroy marine life and devastate the environment and economy of an entire region…. The plain facts are that the technology of oil-- its extraction, its transport, its refinery and use-- has outpaced laws to control that technology and prevent oil from polluting the environment…" (Max, 1969). Oil in its many forms has become one of the necessities of modern industrial life. Under control, and serving its intended purpose, oil is efficient, versatile, and productive. On the other hand, when oil becomes out of control, it can be one of the most devastating substances in the environment. When spilled in water, it spreads for miles around leaving a black memory behind (Stanley, 1969).
... production costs is amongst the lowest in the world. Iraq has the potential of overthrowing OPEC's regime if OPEC countries like Russia and France are ready to develop Iraq's oilfields so that it can be used to full efficiency. Does this mean that, to stop a monopoly, another monopoly must be used to overcome it? Time will tell, especially when UN sanctions are lifted and the new Iraqi government is formally established.
According to the US Environmental Protection Agency, over half of the oil used in the USA is imported. Most of this imported oil is located in the middle east and is controlled by OPEC members. Subsequent oil price shocks and price manipulation by OPEC have cost our economy dearly—about $1.9 trillion from 2004 to 2008—and each major shock was followed by a recession (Reduce). We may never be able to fully eliminate our need to import oil, but we can reduce cartel market control and the economic impact of price shocks by reducing our demand (Reduce). One way we can reduce our reliance on oil is through investing in renewable energy. Solar power, wind power, and hydro power are all forms of energy which come from renewable resources. Unlike oil, solar, wind and hydro electric power is abundant and can be obtained locally.
The world wide oil industry supplies mankind with many life improving products and services. At the same time these technological advances challenge us with numerous ethical considerations.
The world that we live into today affords us the expectation that the flip a switch will turn the lights on. As populations increase and developing nations undergo dramatic economic growth, this energy demand will only continue to grow. The International Energy Agency (IEA) believes that “the world’s energy needs could be 50% higher in 2030 than they are today” (ElBaradei). Given this projected growth, it is necessary for world leaders must take action to secure the energy supply. Meaning that world leaders need to start seriously considering an alternative to non-renewable energy sources. “In 2012, the United States generated about 4,054 billion kilowatt-hours of electricity. About 68% of the electricity generated was from fossil fuel (coal, natural gas, and petroleum), with 37% attributed from coal” (U.S. Energy Information Administration). The fossil fuels that are used to supply over half of our country’s energy are in finite supply and are increasing in price to astronomical heights.