screw up Prices: What has caused them to soar?
Business 350
1 October 2008
Gas Prices: What has caused them to soar?
This sudden surge in extreme splosh prices has put the United States in a state of panic. Our in one case roaring economy has screeched to a halt. Millions of homes seduce gone into foreclosure. reference work cards are maxed out. Thousands of Businesss, big(p) and small, are curtailment or closing their doors for good. The unemployment rate is at an all cartridge clip high and does non seem to be slowing coldcock anytime soon. The financial market is in shambles. Almost every study bank has either gone belly up, or is in merger talks. The sudden spike in gas prices seems to have been the tipping point that has caused all this turmpetroleum. So where did these gas prices come from? thither seems to be several factors contributing to the soaring gas prices: the fading U.S. production, the Iraq War, the OPEC stranglehold, an increase in world demand, and newly emerging technologies.
I. fading U.S. Production
Over the past few decades, United States based petroleum companies have seen their production cost greatly increase. Not so much in maintaining embrocate fields that are already in production. But in finding and establishing new resources.
It has twist very expensive to find these new resources, and it is hit or miss. Many times when they decide on a localization and drill for the petroleum, there is nothing there. They lose ever centime invested in that location. Not only is it expensive to produce the oil in the United States, it is expensive to refine it as well. The lastly U.S. based oil refinery was built in 1976. Big oil companies have attempted to build several more, but environmental groups and local residents have tied the process up in court spanning a decade or more. So not only is it very expensive to find and drill in new locations, the legal fees can be a large deterrent as well. So as the established oil fields have dried up over the years, it has...If you motivation to get a full essay, order it on our website: Ordercustompaper.com
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