February 27, 2017

Homework Help: english

Posted by tee on Friday, September 5, 2008 at 11:38am.

Can you proofread and suggest any changes or additions to make better?


Throughout the last several decades, we have seen the world’s dependency on oil and gas, which are among two of the most important resources, 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 forty or even the fifty 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 $4.00 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.

It has been obvious that in the international market the consumption of oil and gas is increasing day by day. It is due to the fact there are numerous more advancements in the 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 for a miracle. Our energy future is extremely important to everyone with costs increasing by double digit amounts almost daily. When asking about the price of anything, the answer is always "Supply and Demand". The demand for fuel is higher. The supply is limited.

There are also conflicts of interests between Venezuela’s president Hugo Chavez and the George Bush’s administration. Constant quarrels between the two presidents may also fuel the price problems. Venezuela's proven oil reserves are among the top ten in the world. Oil generates about 80 percent of the country’s total export revenue, contributes about half of the central government’s income, and is responsible for about one-third of the country’s gross domestic product (GDP).

In addition, the falling American dollar, coupled with the United States credit woes in the secondary mortgage market and its ominous banking industry, the U.S. dollar’s purchasing power continues to get battered.

OPEC: Organization of the Petroleum Exporting Countries. OPEC's mission is to coordinate and unify the petroleum policies of member countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital to those investing in the petroleum industry. One of the greatest questions that has loomed over OPEC’s ability to keep the price of oil below an acceptable level, is whether or not OPEC will have the capacity to produce an average of 20 million barrels of crude oil, per day. It is no secret that OPEC has been known to submit false capable production numbers on several occasions. The international markets have on several occasions questioned whether or not they are actually capable of meeting the required production levels, or are they simply in a position where they may not be able to sustain the needed production levels, to combat the increasing price of gas.

With these issues looming over our minds, the United States is now in a position where it must allocate a great amount of time and resources to curtail its dependency on foreign oil. Over the last several decades, it has been a focal point of discussion amongst the different administrations that have governed the United States. With the price of a barrel of oil surpassing the $110 mark, the need to put into action one of these plans is of utmost importance. By developing alternative sources of energy, we can place ourselves in a position where we can begin to promote a less costly energy. <what about other alternatives?

One of the most talked about options is the drilling in the Arctic National Wildlife Refuge, which is located in the northeast area of Alaska. Since the 1950’s, there has been considerable talk about its role in minimizing our dependency on foreign oil; however, the cost of this exploration will likely result in an insurmountable cost, that will be measured not on a monetary level, but on the loss of animal species and the habitat where those species reside. Information gathered from the biological, seismic, and geological studies were used to complete a Legislative Environmental Impact Statement (LEIS) that described the potential impacts of oil and gas production in these areas. The results found has supported the environmentalist claim, that drilling will result in irreparable losses to several species that are common to the serene habitat. Polar bears and the millions of migratory birds that depend on the vital habitat would become extinct due to oil spills.

Much of the nation’s coastal waters are off-limits to new oil and gas leasing until 2012 under executive orders first issued by Bush’s father, President George H.W. Bush, in 1991 and extended by President Clinton in 1998. In addition, Congress has taken action annually since 1981 to preclude drilling in coastal areas. But high petroleum prices have caused policymakers to begin rethinking a variety of issues, including opening the Arctic National Wildlife Refuge to energy exploration and imposing mandatory limits on greenhouse gas emissions from oil refineries and power plants.

In addition, whether or not the areas have the necessary amounts of crude oil in the grounds has become a difficult question to answer. Although production has been going on in Alaska, on the Naval Petroleum Reserve since the 1970’s, it is at a very bare minimum, and it is not likely to impede on the ramped price increases, that we are seeing.

Suppose the domestic production levels were actually sufficient to keep prices at bay, would our problems be resolved? The unfortunate answer to that questions is no, because during the early 1900’s, there were heavy tariffs imposed on domestic oil drilling. These tariffs were created to keep oil companies form drilling in these areas. During these early times, foreign oil dependency became that much more appealing, because there was never a tax imposed on the imports of foreign oil. It became cheaper and safer to import oil from other oil rich countries in the Middle East, Africa, and South America. In essence, the good tariff taxes that were levied some 60 years ago are now actually not so good, as far as making a strong argument to extract domestic crude oil today. Environmentalists, however, contend that it has kept our serene frontier less prone to species and terrain depletion.

With so many different issues that we must contend with, to extract crude oil for our personal consumption, it is not difficult to understand why it has always been a very complex issue that the world must resolve. There is no real definitive solution to this problem, and as more problems come about, we are likely going to see this problem manifesting to major global problem.

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