An Endless Means Of Transportation
An Endless Means of Transportation
Supply is at the heart of soaring gas prices. Needless to say, the price of crude oil, gasoline, and diesel fuel prices have reached all-time high, costing over $120 a barrel. The growing demand and tighter supplies for gasoline prices are likely to keep rising as high as $200 a barrel. Rising gas prices are causing financial hardships for majority of Americans and a potential threat to the durability to the economic recovery. Unless the administration gets Organization of the Petroleum Exporting Countries (OPEC) to increase our oil supply, American consumers are looking at $4.00 a gallon for the upcoming summer, with no relief in sight. Or is there? John McCain and Hilary Clinton are pushing for a summer moratorium on the federal gasoline excise tax, and in the same breath, President Bush says the answer is to drill the Arctic National Wildlife Refuge. Could either be enough to alter global trends and prices?
The price of crude oil and gasoline has been steadily increasing is at its record-high. Gas prices have risen more than 18% so far this year hitting an all-time record high of $3.62 a gallon on average nationwide. Also, crude prices hit a record of $123.56 a barrel, according to AAA. Many would assume that the price of oil is set either by OPEC policy, U.S. policy, or oil state policy; that is not the case. Oil operates in a global economy. The price we see on the marquees at a local gas station is determined as much by how much gasoline is being purchased in China and India today as it is how much gas people in the United States are buying. Crude oil and other petroleum products are bought and sold on a free world market. Although, over the years, oil has become public utility, since it is a commodity that is so essential to our welfare, our national security and our economy. In today’s market, oil companies are all affiliated with a single state. Many large oil companies are multinationals...
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