Abstract
An examination of the effects of gas prices on the economy.

From the Paper
"Rising costs of gas affect the economy and everyone in it, including business and consumer members, as well as the general population. According to the EIA, from ... to ... energy prices decreased, boosting the economy. If this had not taken place, steady prices would have reduced the growth rate of GDP by .... percentage points. Following this period, energy prices first rose dramatically and then declined again. Over this four-year period, steady energy prices could have boosted GDP growth by ... percentage points..."

Tags:gas, prices

Abstract
This paper explains that one of the strangest issues about gas prices is that, even though they are rising rapidly, the variance of how much gasoline costs per gallon on any given day across the country is fascinating. The author points out that many people believe that the reason gas prices have risen so high is that America basically is at war in the Middle East now; however, there are gas stations across the country that do not buy gasoline from the Middle East and instead purchase it from gasoline and oil suppliers within the United States and other countries. The paper stresses that gas prices are rising so rapidly because demand is coming from not only consumer transportation but also from almost everything, which is brought to the various grocers, supermarkets, department stores and other stores, which comes by truck at least for some part of its journey. This increased price of transportation will result in increased prices for every item in the transportation-based economy.

From the Paper
"Naturally, the reasons behind why gas prices are rising are important but how gas prices and their rise is affecting the economy is even more significant. There are several affects on the economy. First, those that are involved with the ownership of gasoline stations, oil refineries, and others that work closely with this type of product are seeing higher profits, but they also have to spend more money for the items that they need to create an end product for the purchaser of gasoline (Kirms, 2005). In other words, companies that buy oil from the Middle East and other suppliers are making money because the gas prices are so high. On the other hand, these same individuals must also pay more money than they used to pay to get the barrels of oil that they need to create gasoline. Many people think that the economy is being affected generally by gas companies and oil companies gouging the public to make huge profits. In reality, however, most of the gasoline companies and many of the oil companies are not actually making any more money, because it is all being spent to purchase what is needed to finally get the gasoline to the consumer."

Tags:stations, transportation, war, profit, variance

Abstract
The paper discusses the price of crude oil and how it is determined by supply and demand and by speculators in the global commodities markets. The paper also looks at the impact of federal and state taxes, refining costs and marketing and distribution costs. The paper notes that the most relevant of these components of oil prices remains the price of crude oil, and while the price at the pump cannot be attributed entirely to the fluctuations in the price of crude, there is a strong correlation. The paper points out that the key for consumers is to understand that the presence of speculators in the commodities markets increases the volatility in the crude oil market. The paper concludes that as long as this is the case, and emerging nations continue to increase their consumption, the price of gas will have significant upward pressure exerted upon it.

From the Paper
"Crude prices are also affected by speculators on the global commodities markets. Oil is traded on commodities exchanges such as the New York Mercantile Exchange, and is typically purchased on credit (leverage). This increases the amount of oil that any one investor is able to sell. Commodities exchanges have historically been immune from speculative buying because the buyer must take physical delivery of the product. This has historically limited the market to oil companies, airlines and other major users. However, speculators have been able to enter the market, as long as they are able to unwind their positions before they are forced to take delivery. This speculation increases the volatility in the oil markets, such that over the first half of 2008 they behaved irrationally. A large number of unusual investors are recorded in this group - the California pension fund, Harvard Endowment fund, hedge funds, sovereign wealth funds and a variety of institutional investors (Kroft, 2009)."

Tags:speculation, OPEC, price, supply, demand, taxes

Abstract
This paper offers a detailed overview on the price of light, sweet crude oil on NYMEX in 2005, noting its highs, lows and its relative cost to previous months and years. It continues to discuss the reasons for the price surges namely, the war in Iraq and hurricane Ivan. The paper highlights that the movement of gas and oil is similar to that of the business cycle. In conclusion, the author of the paper offers an opinion as to why the gas and oil hike will not cause a recession as in 1973.

From the Paper
"Drilling for crude oil generally moves with oil prices. A closer relationship is more evident prior to 1998. As OPEC pushed prices upward by restricting production in 1999, however, the relationship weakened. The overhang of excess capacity in OPEC created the possibility that oil prices might fall. The result was a muted and delayed response in oil drilling. Oil drilling did not pick up until growing demand pushed OPEC closer to full capacity. The story is similar today. Political uncertainty and OPEC production restraint have pushed world oil prices upward, although excess capacity is nearly 10 percent of world oil consumption at 6 million barrels per day. The overhang of capacity creates the possibility of a sharp oil price decline and adds considerable risk to future oil prices, which discourages exploration and development activities."

Tags:cost, fuel, production, recession, increase

Abstract
The purpose of this paper is to introduce, discuss and analyze the topic of gasoline prices in the United States and offer some insight as to why they are so high. Specifically, it answers the question "Do Americans really have a right to complain?" It also discusses European gas prices, and why they are higher than America's, as well as some alternative fuels that might help ease gas prices in the United States.

From the Paper
"American gas prices may be higher than we have ever encountered before, but they are much lower than gas prices around the world. American drivers are spoiled. They tend to drive large, inefficient vehicles, and then rant about the high price of gasoline. They drive long distances for work and play, using more gasoline per capita than residents of many foreign countries. American drivers also rely heavily on their vehicles, rather than using more efficient and fuel-friendly alternatives, like carpooling or public transportation. We depend too much on foreign oil, a resource that is non-renewable. We need to develop more alternatives to our dependence on gasoline by researching more efficient fuels and automobiles, like the hybrids that have recently been developed by Honda and Toyota, which use a mixture of gasoline and electricity to provide better gas mileage while using less gasoline. Our dependency on oil must stop, or one day, our children will wake up to world without gasoline."

Tags:crude, oil, SUV, automobile, OPEC

Abstract
Over the past few years, the American economy has seen a gradual rise in gasoline prices. The paper examines factors that, in the author's opinion, contribute to these price increases and then attempts to explain them.

From the Paper
"American's made a conscious choice to buy the cars that they did. In the early 2000s everyone was so apt to go for the big SUV, feeling that they were safer and more reliable than regular cars. Sadly at that time, automakers had shifted their focus to SUVs insuring that they were exactly that. There was no emphasis placed on fuel economy or otherwise. However the entire picture was not presented--at least not accurately.
"The commute has changed. The daily dynamic has changed. Suddenly global warming and the environment have been pushed to the forefront. Slapped in the face, America has decided to forge ahead once again as an innovator and develop other means of conveyance and supplant its dependence on oil--foreign or otherwise. Alternative means of fueling our daily lives--as well as our economy--are hopefully the means to put the American economy back on top. Similar to the industrial revolution and the silicone explosion, leading the way in alternative fuel technologies can--and will--be the way for America to regain its technological supremacy."

Tags:economics gasoline war OPEC cartel barrels, oil production, nuclear pump price profits financial recession

Abstract
This paper examines the phenomenon of gas price fluctuation, citing the findings of an article written by Scott Horsley in the spring of 2006. The paper explains that Horsley's article examined the economic and political circumstances behind the rising gas prices, and stated that gas prices are one of the most complex supply and demand relationships in the market. The paper notes that, according to Horsley, the biggest factors in rising costs are the costs of crude oil and the cost of refining. The paper asserts that high gasoline prices can have a devastating impact on other areas of the market, as consumers must channel more of their income into transportation; this creates an imbalance where the gasoline market outpaces other areas of the economy. The paper concludes that the government must take action to protect the nation's economy.

Outline:
Summary
Government Interaction and Gasoline Prices
Exploring Alternatives
References

From the Paper
"Oil prices are not set by the oil companies; they are set by the global market. Global demand has increased as countries like India and China become wealthier and more dependent on gasoline. When combined with already high US usage, the demand continues to rise on a global basis. Production is controlled in OPEC countries so that the price can be artificially controlled through regulating supply in comparison to demand. Prices are maintained at artificially high levels, much higher than they would be in a competitive market. Prices are maintained as high as possible, but not so high as to encourage the development of alternatives (Horsley, 2006)."

Tags:inflation, fuel, cost, alternative

Abstract
Contends that the operations of the U.S. Federal Reserve cannot protect an economy from supply shocks. The increase in gas prices in the United States since 2002 has led to inflation that is not caused by an over-extended economy, and is therefore not able to be controlled without high levels of unemployment.

From the Paper
"The open market operations of central banks such as the Federal Reserve Bank of the United States or the European Central Bank of the countries in the European Union that adopted the Euro fine-tune their economies by controlling the money supply. The success of such measures is based upon the theory summed up in the Phillips curve that unemployment and inflation are inversely related. These measures cannot protect an economy from supply shocks, however. The increase in gas prices in the United States..."

Tags:economic, philip, curve, september, 11, 2001, oil, crisis, inflation, unemployment

Abstract
The paper explores whether the most recent oil price rise is just a temporary spike that will eventually correct itself, or whether it indicates a long-term trend. The paper looks at three factors that can help to predict future trends: options and futures trading, supply and demand and oil speculation and the result of inflationary forces. The paper relates that improvements in technology will lead to more efficient use of our oil reserves which will also be a key determining factor in future oil prices.

Outline:
The Financial Markets and Oil
Supply and Demand
Inflationary Adjustments in Oil Prices
Determining the Best Method for Predicting Oil Prices
Conclusion

From the Paper
"Anyone who has filled up their gas tank lately knows that prices have been on the rise for some time. Fluctuations in gasoline at the pump are a reflection of fluctuations in the price of the raw material from which it is made, crude oil (Federal Reserve, 2004). When oil prices peak the public, sparked by the nightly news, tend to overreact. They fantasize about what the world will be like when everyone stays home because they cannot afford gasoline to go places. The picture that some paint is that of economic ruin and despair. However, in reality, the effect of gasoline is not as dramatic as many would believe. The following will examine the real effects of gasoline price fluctuations on the economy."

Tags:speculation, supply, demand, inflation, technology

Abstract
The paper presents a government intervention program for lowering Canadian prices in relation to oil and gas. The approach this paper takes is to lower federal taxes for a direct and immediate impact. Although there are follow-on effects that will have to account for the lost revenues, this approach will lower prices during the summer driving season, which is the goal of this intervention.

Tags:government, policy, taxation