Oil and Gas Prices: The Road to Economic Collapse

rock petroleum color and flatulence Prices: The Road to frugal Collapse Tod Chow Axia College of University of Phoenix Oil and Gas Prices: The Road to Economic Collapse there argon devil imagines to be considered when addressing the issues of rising oil colour and torpedooline sets. These two views imply the producers who acquire it as acquiring large profits and consumers who view it as an extreme financial burden. Over the coming years, how oft higher(prenominal) can the cost of oil and heavy weapon peradventure arrive and can the economy sustain these excessive price hikes? With the ever so increasing price of oil and shoot a lineoline, consumers and businesses must win changes which may have devastating effects on the economy. There argon many issues that cause the rise of oil and gas prices. The of import contributing issue to the increasing cost of oil and gas is sum and demand. When demand is greater than supply, the price of oil and gas will escalate. The factors that affect supply include increase demand, problems with refineries and pipelines and fluttering to supply or threat of disruption to supply. With the change magnitude demand for oil in the United States and other countries much(prenominal) as India and China; the extra demand for oil has consecrate enormous pressure on available oil reserves.

The null Information Administration stated, If refinery or pipeline and/or reductions in imports cause supplies to decline unexpectedly, gasoline inventories (stocks) may drop rapidly. This may cause wholesalers to bid higher for avail able supply on the whole over concern that! future supplies may not be tolerable (2008, para. 10). These issues which affect production have contributed in depleting oil reserves. With this in mind, the other underlying factors that affect supply are disruption to supply or threat of disruption to supply on with the Organization of the crude oil export Countries (OPEC). The Organization of the Petroleum Exporting Countries is an organization of oil producing countries which produces almost half of the globes crude...If you insufficiency to get a full essay, order it on our website: BestEssayCheap.com

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