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Oil And Gas Prices Essay

1981 words - 8 pages

In America oil and gas prices have sky rocketed to record breaking figures over the past few years. Throughout the past several decades, the world's dependency on oil and gas has increased rapidly. These are among the most important resources. The need for oil and gas are growing at a rapid rate. The economy is influenced by many factors that determine its surplus or deficit. As the demand for oil and gas grows, the American family spends an average of $200 to $300 in gasoline every month. Oil and gas continue to be major contributors to the stability or instability, of the larger economies, such as those of the United States, Germany, and Japan, and the third-world nations as well.The world, as a whole, depends greatly on oil and gas as their main energy source. Our economy has continuously shown that it is seriously affected when gas and oil prices are on the rise. Over the last several years, the price per barrel has set record highs and many economists question whether the price per barrel will ever drop to the 40 or even the 50 dollar range.According to the Oil Price Information Service, supplies are still at a relatively good level, in spite of the growing demand for greater consumption. This demand has pushed the price of the gallon of gas in the United States from a comfortable amount of $2.09, to more than $3.50 a gallon, within the last several months. This price surge has been the highest since last year. Since our entire economy is oil energy dependent, that has raised the prices of both perishable and nonperishable goods that Americans purchase. Many analysts are in accord with the probability that it will reach $4 a gallon, by summer's end.The catalysts responsible for these sharp increases are directly related to the many disruptive current events that we hear in our news channels. Recent world events such as the war in Iraq, the instability in Nigeria, and the conflict between Chavez and Bush have all contributed to the price of oil going up. This in itself has translated to an increase in gasoline prices.The war in Iraq has also caused instability in the region and a decrease in production, coupled with an increase in demand from emerging nations such as China and India. The oil rich country of Nigeria has also been dealing with internal political conflicts, which has brought about sabotage and chaos in its region. While it is dealing with these local problems, it too is unable to focus on maintaining a production level needed to keep the price per barrel of oil at an acceptable level.This has been obvious that in the international market the consumption of oil and gas is increasing day by day. This is due to the fact that there are numerous more advancements in the Oil and Gas Prices Page Three Field of science and technology so we have more requirements. Despite of all these facts we have limited reserves of gas and oil in many countries so import usually results in the facts. All we can do is to pray for betterment and wait...

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