The Effects of Oil Prices on Our Nation's Economy
The Effects of Oil Prices on Our Nation's Economy
Introduction
As one may have noticed in the past few years the price of oil has risen drastically. Either at the gas pump or at home in the winter with the heating bill the price of oil effects everyone.
The beginning of this paper discusses what OPEC is, what it does, and why it is good or bad. Also it will begin to discuss the price of oil in the global oil market but mostly in our nation's economy: who, what, when, where, why, how.
The purpose of this research paper is to educate the reader on the effects of oil prices and how another oil crisis can be prevented like the one in 1973. That oil crisis quadrupled the price of oil, eliminated economic growth, double inflation rates, and launched many nations into urgent pursuit energy self-sufficiency (Shojal 27).
What should the price be on a barrel of oil? This question is asked a lot and does not always have a easy answer. Oil is a strategic and valuable resource. The question of running out of oil is a major concern.
Another major concern is the rising price of a barrel of oil. Barrels of oil are currently approaching more than $70 dollars. Effects of these high prices are spreading throughout the world economy; increases in the cost of gas, travel, and home-heating oil are really starting to take a big bite into everyone's pockets.
Oil is found in large quantities below the surface of Earth and is used as a fuel and as a raw material in the chemical industry. Modern societies use it mainly to achieve a degree of mobility on land, at sea, and in the air. In addition, oil and its by-products are used in the manufacture of medicines and fertilizers, foodstuffs, plastics, building materials, paints, cloth, to generate electricity, and most importantly gasoline.
OPEC
History
OPEC stands for the Organization of Petroleum Exporting Countries. OPEC was originally established in 1960 in response to a unilateral decision of oil companies
Introduction
As one may have noticed in the past few years the price of oil has risen drastically. Either at the gas pump or at home in the winter with the heating bill the price of oil effects everyone.
The beginning of this paper discusses what OPEC is, what it does, and why it is good or bad. Also it will begin to discuss the price of oil in the global oil market but mostly in our nation's economy: who, what, when, where, why, how.
The purpose of this research paper is to educate the reader on the effects of oil prices and how another oil crisis can be prevented like the one in 1973. That oil crisis quadrupled the price of oil, eliminated economic growth, double inflation rates, and launched many nations into urgent pursuit energy self-sufficiency (Shojal 27).
What should the price be on a barrel of oil? This question is asked a lot and does not always have a easy answer. Oil is a strategic and valuable resource. The question of running out of oil is a major concern.
Another major concern is the rising price of a barrel of oil. Barrels of oil are currently approaching more than $70 dollars. Effects of these high prices are spreading throughout the world economy; increases in the cost of gas, travel, and home-heating oil are really starting to take a big bite into everyone's pockets.
Oil is found in large quantities below the surface of Earth and is used as a fuel and as a raw material in the chemical industry. Modern societies use it mainly to achieve a degree of mobility on land, at sea, and in the air. In addition, oil and its by-products are used in the manufacture of medicines and fertilizers, foodstuffs, plastics, building materials, paints, cloth, to generate electricity, and most importantly gasoline.
OPEC
History
OPEC stands for the Organization of Petroleum Exporting Countries. OPEC was originally established in 1960 in response to a unilateral decision of oil companies