english - Ms. sue - please proofread

The economy is influenced by many factors that determine its surplus or deficit.

Throughout the last several decades, we have seen the world’s dependency on oil and

gas. Also, oil and gas are among two of the most important resources in the globe. 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 economy is seriously affected when gas and oil prices are on

the rise; however, finding a solution is no easy task when dealing with such a complex global

issues.


The world, as a whole, depends greatly on Oil and gas as their main energy source.

Our economy has continuously shown that it seriously gets 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 economist questions whether the price per barrel will ever drop to the 40 or even 50

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 $3.115 a gallon, within the last several months. This price surge has

been the highest since last year. Many analysts are in accord with the probability that it will

reach $4 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 barrel of oil going up. This in itself has translated to an increase in

gasoline prices. Since our entire economy is oil energy dependent, that has given rise in the

prices of both perishable and nonperishable goods, that Americans purchase. The war in Iraq

has also caused instability in the region and a decrease in production, coupled with an

increase in demand from emerging nation 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 to be unable to focus on maintaining a production level needed to

keep the price per barrel of oil at an acceptable level. 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. 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.

One of the greatest questions that have loomed over the Organization Petroleum

Exporting Countries (OPEC), the 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. There 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 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 good amount of time and resources to curtail its dependency on

foreign oil. Over the last several decades, there has been 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. One of

the most discussed options is the drilling in the Artic National Wildlife Refuge, which is

located in the northeast area of Alaska. Since the 1950’s, there has been considerable

discussion 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 loses to several species that are

common to the serene habitat. 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 1960’s, it

is at a very low minimum and it is not likely to impede on the ramped price increases that

we are seeing. Suppose the domestic production levels were 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. As a result, oil and gas became cheaper

and safer to be imported from the other oil rich countries in the Middle East, Africa and

South America. In essence, the good tariff tax that were levied some 60 years ago are now

not so good, as far as it concerns, to make a strong argument in extracting domestic crude oil

today. As a result, environmentalist are determined to keep 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 is has always been a

very complex issue that the world must deal with. 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.

  1. 👍 0
  2. 👎 0
  3. 👁 56
asked by rose
  1. "The economy is seriously affected" -- what does that mean exactly?

  2. look wha is happening to the economy today.

    1. 👍 0
    2. 👎 0
    posted by rose
  3. My point is that simply saying "seriously affected" is very general. HOW is the economy affected? What are the results?

  4. Writeacher is correct -- she wants you to be specific.

  5. Ms. Sue,

    How should I present this then.

    1. 👍 0
    2. 👎 0
    posted by rose

Respond to this Question

First Name

Your Response

Similar Questions

  1. english- Ms. sue

    The economy is influenced by many factors that determine its surplus or deficit. Throughout the last several decades, we have seen the world’s dependency on oil and gas. Also, oil and gas are among two of the most important

    asked by rose on April 6, 2008
  2. Economics

    When the economy is at full employment, should the federal government run a budget deficit, surplus . Or neither? Explain. Remember WWII? The US was at full employment then...but the expenditures great. I am not and economics

    asked by Paul on July 16, 2006
  3. Macro econ

    Use the Keynesian model for this problem. Assume the following model of the economy, where c, t, and nx are positive constants: Y=C+Ip+G+NX C= 200 0 + c(Y-T) T= 400 + tY Ip = 1500 G = 2000 NX = 1000 - nxY where c=.75, t=.2, nx =

    asked by Ty on February 9, 2008
  4. history

    What type of economy eventually led to the soviet union's collapse? 1) a devolping world economy 2)a non surplus economy 3)a command economy 4)a demand economy i choose 3

    asked by Ciara's Sister on December 16, 2011
  5. math check answers

    1.  A surplus is _____. (1 point) when you spend more than you have in income when you spend less than you have in income when you spend the same amount that you have in income

    asked by Anonymous on October 14, 2016
  6. macroecon

    the greatest expansionary impact of a budget deficit will occur when: a-government borrows the money from the general public b-economy is operating in the intermediate range of its aggregate supply curve c-marginal propensity to

    asked by steve on October 2, 2008
  7. career

    suppose a school needs to hire 2 new teachers, but there are 20 recent college graduateas hoping to get a teaching job at that school. what is this an example of? job surplus job shortage economy expectation shortage when the

    asked by Anonymous on March 14, 2019
  8. Writing------PLZ HELP--I'M DESPERATE!!

    In writing an essay,what are some factors that have influenced your life? What are some hereditary and enviromental factors that have influenced how you have developed? Please tell us what has influenced YOUR life, and we'll be

    asked by Mandy on November 7, 2006
  9. accounting

    surplus better off than deficit worse off

    asked by Happy on August 17, 2015
  10. economics

    If a nations exports=60 and imports=50 why is 10=surplus and not a balance or deficit.

    asked by Hu on March 13, 2008
  11. consumer math

    The following describes the status of the O'Daniel's budget. A) It is in surplus B) It is in deficit C) It is balanced

    asked by Kayla on February 28, 2012

More Similar Questions