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Article Analysis

974 words - 4 pages

Article Analysis
Eric Graves
Dr. Satish Sharma
University of Phoenix
ECO/365

Abstract:

The following article is regarding what is most important to everyone around us regarding the pricing for oil and gas. This is a topic that concerns most people on this planet, why are the prices for gasoline so high and is it regarding the greed of oil producing companies to continue to keep rising the gasoline prices as high as possible. We will talk about the many reasons why ...view middle of the document...

so it can be upgraded to process larger amounts of Canada's heavy crude. The project is taking longer than planned, and analysts expect it to be at least a few more months before the refinery runs at full capacity. Gas prices in the Midwest have be mixed. They went under the national average until April then in May refinery problems sent them soaring to 20 cents above the national average. In Dec refiners could buy Canadian heavy oil for about $44 per barrel half the going price of $88.32 per barrel for West Texas Intermediate, the U.S. benchmark oil. Gas prices went down to $3.14 a gallon still more than the drivers in the Gulf coast.

The Demand Oil and Gas
The world as we know it runs on fossil fuels. The United States is the biggest consumer of oil and gas. Although total unplanned production outages worldwide remained at 2.9 million bbl/d in October, crude oil prices fell toward the end of the month, reflecting lower seasonal liquid fuels consumption. Outages among producers who are not members of the Organization of the Petroleum Exporting Countries (OPEC) rose by nearly 0.1 million bbl/d month-over-month in October because of new disruptions in the United States, Brazil, Canada, and Colombia. They expect a growth in consumption before the summer of 2014. We do not know how to use less than what we need. There are still other kinds of energy and fuels we could use, but we are so stuck on oil and gas that it would hurt the economy if we all out stop using oil and gas.
What Changed the Supply of Oil and Gas?
Over the years there have been many things that changed the supply and demand for oil and gas. The biggest thing that happened was the Gulf War, which I served in. in January of 1999 the Iraqi army opened up valves at the Sea Island oil terminal and dumped oil from tankers in a move against the U.S. I...

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