Abstract This paper discusses the effects of rising gasolineprices on the American economy. It looks at consumer confidence, the assumptions underlying the economics of energy, crude petroleum prices and the power of the OPEC cartel.
From the Paper "This analyst argued that when energy prices decline the U S economy booms. Cheap energy said Ciscel helped get the economy out of the stock market crash through the continuing savings and loan crisis and kept minor downturns in construction real estate and manufacturing from threatening the economic boom. Given this general background the purpose of ..."
Tags: economics, gasolineprices, American economy, OPEC
Abstract Over the past few years, the American economy has seen a gradual rise in gasolineprices. 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."
Abstract This paper tests hypothesis that higher gasolineprices lead to lower demand for SUVs
From the Paper "Gasoline prices in the United States increased in the summer of before declining in the fall of the year to levels that prevailed in the spring of ... . Gasoline prices began another increasing trend in January, which lasted through May of that year, before beginning to moderate once again. The average per gallon price reached in May was percent higher than the May average and the ..."
Abstract This paper takes a look at the price of gasoline and how we need to increase gasolineprices to prevent all our national policies from being determined by our thirst for oil. According to the paper, US foreign policy has become a hostage to ensuring adequate supplies of imported oil.
Outline:
Context of the Problem
Statement of the Problem
Research and Review of the Problem
Crude Oil Prices and its Impact on GasolinePrices Political Impact of Higher Energy Prices Objective of Study: To Advocate Higher GasolinePrices Potential Benefits of Higher Energy Prices Environmental Impact
Global Warming
Significance of the Study
Research Design & Methodology
Discussion
From the Paper "The carbon dioxide produced by motor gasoline in 2003 was equivalent to 311 million metric tons of carbon [Bureau of Transportation Statistics, 2005]. If we could achieve even 10% improvement in energy efficiency through use of lighter cars, it would save million of tons of oil and also reduce the carbon emission by 30 million tons. The 10% target is not just possible it is very realistic and even now a family car is about 25% more fuel efficient than a light truck (a term also applied to SUVs). The federal corporate average fuel economy (CAFE) standards set the fuel economy goals for new passenger cars at 27.5 miles per gallon (mpg). The regulations do not classify SUVs as cars but as light trucks. The light trucks only have to achieve 20.7 mpg. Even this is taken as an average of all light trucks and some SUVs operate at 12 mpg and can remain on the road legally. Some SUVs like Ford Excursions don't even qualify as light trucks and are not subject to CAFE standard."
Abstract This paper discusses how the core concern and primary factor related to the price of gasoline is the understanding of inflation adjustment and in compensating for inflation in determining the true cost of gasoline. While the general population prefers to recall or at least read about the relatively low cost of gasoline in the 1960s when the average cost of fuel was .30 cents a gallon, in inflation adjusted terms this would be equivalent to roughly $1.70 today (Gasoline). The paper explains that the price of gasoline, and certainly of gasoline related spikes in the average cost of goods, is a major contributor to inflation and yet, factoring for the effects of inflation across the economy, tends to reduce the real cost of fuel.
Abstract The purpose of this paper is to introduce, discuss and analyze the topic of gasolineprices 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."
Abstract This paper discusses how crude oil has proved to be one of the most versatile forms of energy and how man has used this fundamental law of energy conversation to make life easier for himself and the community at large. It explores the topic of gasoline from its refining to its conservation and, in particular, the factors affecting its ever-changing price and the economy.
Outline
Introduction
Information About Crude Oil
Refining of Crude Oil in the United States and Worldwide
Workforce in the Petroleum Industry
The History of International Petroleum Pricing The Achnacarry Agreement
The Rise of OPEC Power in the 70?s
Effect of Oil Price Increase on the U.S. Economy
Variables Affecting the Cost of Petroleum Products
Impact of Price Increase on the U.S. Economy
Impact of Petroleum Price Increase on the World Economy
Political Influence on Price Increase
Petroleum Product Transportation and Distribution
Petroleum and the Transportation Industry
Types of Fuel Used in the Transportation Industry
Fluctuating Fuel Prices in Recent Times
Impact of Prolonged Petroleum Use on the Economy
Conclusion
From the Paper "The high cost of oil production in the U.S. would also be impacted by the price decrease as a result of the additional capacity in Iraq. The U.S. producers would become uncompetitive and may eventually have to stop production of oil in current oil and gas-producing states of Alaska, Louisiana, Oklahoma, Texas and Wyoming. The U.S. government may have to impose tariffs and taxes on imported oil in order to keep the local U.S. producers competitive. (Bartis, 2003) Oil exploration and distribution channels can cost billions of dollars to develop. This includes the location and identifying of oil wells, the size and capacity of the well, the type of geography of the area and the long-term potential of the oil well are all-important factors in the cost of the oil production set up for any oil well site. It takes time and effort from the identification of the oil well to the actual production of crude oil."
Abstract This paper discusses the steadily rising price of gasoline, especially over the year 2008. It discusses the impact this has had on American consumers and businesses and how these impacts are being felt across all lines of industry and in almost every aspect of consumers' lives. The paper then briefly discusses some of the views as to the answer to the high gasolineprices.
From the Paper "If the price of fuel is not in equilibrium, we have a market failure, at least temporarily. Market failures can occur many ways. In the case of the recent fuel price runup, speculation surrounds both negative externalities and monopolistic practices. The key externality under consideration is the role of commodity speculators. Both the Senate and Congress have addressed this issue directly. Senator Claire McCaskill directly challenged the US Commodity Futures Trading Commission to deal with the issue."
Tags: monopoly, supply and demand, crude oil, consumption
Abstract Based on an informal survey (conducted in 2003) of 15 retail gasoline outlets in the Los Angeles area, pricing differentials are observed between "majors" and convenience/supermarket outlets. This essay explores the reasons for price differentials.
From the Paper "Retail pricing for gasoline has a marked differential depending onthe location brand grade or service level. This paper explores the reasons behind these apparent anomalies and tries to explain the ..."
Tags:Pricing, differentials/retail/gasoline, distribution
Abstract The article "GasolinePrices Fact or Fiction: A Primer on Supply and Demand" by Tom Lehman, reviews a number of theories about the rise in gas prices and determines whether or not these theories are fact or fiction. The paper shows that the ideas have risen over the past few years, especially following natural disasters.
From the Paper "The first idea presented is that "Gas prices are controlled entirely by wholesalers and big refinery oligopolists who illegally collude and profiteer at consumer expense." This idea has been deemed fictional because gas prices are controlled by supply and demand. This theory completely ignores the demand for gasoline. The demand for gas is price inelastic because when prices change consumers buying habits change much less than the change in price. Gas is a necessity and with the rise and fall of prices consumers do not have the time to react. Gasoline has very few, if any close substitutes and in the short run consumers don't really have a solution. Consumers could go out and buy hybrid cars but that would be a long term solution that would cost a significant amount of capital up front, much more than the temporary rise is prices."
Abstract In this article, the writer presents a detailed examination of the topic of suspected price gouging by oil companies. Using concrete recent examples of well known companies, including Exxon Mobile, the writer explores allegations of price gouging and argues that it is unfair for oil companies to take advantage of consumers when consumers have supported them for years. According to the writer, social responsibility should supercede corporate responsibility. The writer concludes that the time has come for the oil companies to recognize their social responsibilities and protect the consumers who have kept them in business since their inception. Further, the writer claims that the oil companies need to lower their prices so that the consumer can again trust the prices are fair to everyone involved. The writer includes in this paper approximately 30 pages of source copies.
Outline:
Introduction
The Problem
Current Gas Prices and Price History
Conclusion
References
Source Copies
From the Paper "According to studies conducted with regards to gasoline refiners are getting more of a profit out of each gallon now than they were at this time a year ago. Crude producers are getting an additional 47 cents a gallon. After Katrina and the price of oil company products began to increase rapidly, Congress held a special session in which many experts and oil company representatives testified regarding the accusation of price gouging. The companies maintained their belief that it was not their work that was price gouging but it was the retailers who sold the gasoline that were participating in price gouging. Retail representatives responded that it was nonsense, pointing out that their customers would not remain loyal if they suddenly began upping the price of gasoline compared to the retailer across the street."
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."
Abstract This paper discusses wrongful conviction in the criminal justice system in the United States. The paper analyzes how it is now evident that there are hundreds of individuals that have been incarcerated who are innocent and how in recent years many of these innocent individuals have been released after serving time on death row or having been incarcerated for decades for crimes that they did not commit.
From the Paper "Wrongful Conviction in the Criminal Justice System Introduction Wrongful convictions have been recorded in the United States since the early 1800s. While it has been historically believed that all individuals convicted of crime claim to be innocent although they are guilty, it is now evident that there are hundreds of individuals that have been incarcerated who are innocent. Furthermore, in recent years many of these innocent individuals have been released after serving time on death row, or having been incarcerated for decades for crimes that they did not commit. The public concern for this issue has only been realized in the past few decades since the advancements of DNA testing, and the ability of scientists to prove innocence in many cases. However, forensic science is not the only method that is used to convict in this country."
Abstract This paper examines the loss leader pricing scheme employed by retail businesses like Wal-Mart. It explains how this pricing scheme should be included in Wal-Mart's pricing strategies in order to increase the volume of goods sold and therefore the amount of profits realized by the company. The writer discusses how a retailer such as Wal-Mart relies mostly on economy and occasionally loss leader pricing to maintain profitability. The writer suggests that a successful retailer such as Wal-Mart must make use of a variety of pricing schemes in order to be profitable. The writer notes that Wal-Mart is a success because it sells products at low prices that people want to buy, satisfying customer's wants and needs. The writer concludes that Wal-Mart should continue using a combination of pricing strategies, to include loss leader pricing, to entice consumers to shop in their stores.
From the Paper "I am asked if Wal-Mart should use loss leader pricing? One must consider the overall effects of such a practice as well as the company objectives in instituting such a policy. Additionally, a variety of pricing schemes and strategies must be understood as well as the intentions of such schemes. First, loss leader pricing is an aggressive pricing strategy where a retailer sells goods for less than they bought them for, attracting more consumers to their stores. The hope is that these consumers will buy other goods and more than offset the cost of the good being sold for a loss. This is a type of promotional pricing strategy which is a very effective method of pricing."
Abstract For this assignment, the writer chose to check the price of Michael Jackson's "Invincible" CD, released in 2001, online at www.BestBuy.com and www.Ebay.com and at a local Wal-Mart store. The writer begins this paper by stating the price found for the product at each point of purchase. Then, it discusses the pricing rationale for each point of purchase location in turn in light of the price set for this product. Finally, the writer concludes this essay by summarizing the above noted information.
From the Paper "I found the CD for $14.99 at www.BestBuy.com including free shipping. At www.Ebay.com I found the CD (used) at an in progress auction at www.Ebay.com for $0.99 with $2.90 for shipping / handling and insurance. Finally, at my local Wal-Mart the CD was available for $13.99, plus all the stores CD's were 20% off for a holiday sale. At www.BestBuy.com the company is employing the premium pricing strategy (Kotler, 715). Because they are willing to include shipping for free the item is not any more expensive to the consumer than it would be if they simply went to the local store to purchase it outright or if they ordered it online and then went to a local store to pick it up."
