Oil and Gas Prices: The Road to Economic Collapse

rock petroleum color and brag Prices: The Road to scotch Collapse Tod Chow Axia College of University of Phoenix Oil and Gas Prices: The Road to Economic Collapse there be the Tempter imagines to be considered when addressing the issues of rising anoint and torpedooline sets. These two views imply the producers who go to it as acquiring large profits and consumers who view it as an extreme financial burden. Over the coming years, how oft high can the cost of oil and attack peradventure get back and can the economy sustain these excessive price hikes? With the forever increasing price of oil and gasoleneoline, consumers and businesses must win changes which whitethorn have devastating effects on the economy. There argon many issues that cause the rise of oil and gas prices. The main(prenominal) contributing issue to the increasing cost of oil and gas is impart and demand. When demand is greater than supply, the price of oil and gas will esc alate. The factors that affect supply include increase demand, problems with refineries and pipelines and flutter to supply or threat of disruption to supply. With the change order demand for oil in the United States and other countries such(prenominal) as India and China; the extra demand for oil has break enormous pressure on available oil reserves.

The correct 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 available supply in all over concern that future s upplies may not be tolerable (2008, para. 1! 0). 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 rock 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 neediness to get a full essay, order it on our website: BestEssayCheap.com

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