Many insist that drilling is a possible fix to high gasoline prices. The fact is, this will never actually be true. Oil, and thus gasoline, is a finite resource, and on one seriously argues otherwise: there is a time that we will run out, and some theorists insist that the world has already reached peak oil (Carlson). Yet demand continues to increase because of a larger and larger world population that requires more and more oil to function, especially as markets such as China and India develop and more people in those places begin driving cars. Thus, if one examines the rules of supply and demand, an increasing demand and a finite supply will always eventually lead to price increases – a temporary increase in supply may alleviate prices to a small degree, but even this may be minimal because speculators will always be able to buy high and sell higher, as the world supply is still known to be finite. The only way to actually reduce gasoline prices is to reduce dependency – reduce demand, because supply is something that is impossible to control. This can be done through electric cars, alternative fuels, and conservation, eventually building towards a society that does not rely on oil at all, because we know it will eventually run out.
The myth that a temporary increase in supply is good for gasoline prices simply does not hold true. Quick fixes like this will never work – in order to really address this problem, we need to fundamentally change the way we consume oil.
Carlson, Robert. "World Oil Production via Hubbert Linearization of Production and Normalizations of ProductionWorld Oil Production via Hubbert Linearization of Production and Normalizations of Production." Energy Sources, Part B: Economics, Planning, and ...
Cite this document
(“Gasoline prices Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Retrieved from https://studentshare.net/english/494584-gasoline-prices
(Gasoline Prices Essay Example | Topics and Well Written Essays - 250 Words)
“Gasoline Prices Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.net/english/494584-gasoline-prices.
This research will begin with the statement that gasoline is one of the main sources of energy which fuels internal combustion engines. This energy resource is vital for the global economy as it fuels the various sectors of the industry by making possible the transportation of goods and services as well as providing heat.
power and its regulation (Holdich, & Chianelli, 2008). Equilibrium price is determined more or less by some of the same above factors in addition to the level of supply and the elasticity of supply. In other words the supply of gasoline is relatively inelastic.
However, there may also be shorter term influences that the weather has on the price of gas. It is natural to believe that when the weather is clear and sunny that people may want to travel, even for a short distance for the day. This would create a temporary increase in demand that should be reflected in a rise in price.
For example, each additional ten cents per gallon adds as much as $14 billion to American gasoline expenses. In order to understand the importance of gasoline for the national economy, it is essential to look at the market and what factors are affecting the price of gasoline.
Gasoline is one of the main sources of energy which fuels internal combustion engines. This energy resource is vital for the global economy as it fuels the various sectors of the industry by making possible the transportation of goods and services as well as providing heat.
But the massive increase also observed in 2008 when it reached to more than $4 per gallon.
These dramatic changes in gasoline prices in USA are the result of many factors. Some of these factors are related to international changes and some are related
Largely, market prices of gasoline products change whenever crude oil prices change. Policy makers in the oil industry are aware of the influence of this relationship. This paper explores the relationship that exists between the crude oil and the gasoline
Gasoline is a very important resource and people must have it to smoothly go on with their daily lives. Therefore, people have no choice but pay for the product regardless of the cost. Most gasoline supplying companies know when the demand is high, and