But the basic rule of political economy may not be sufficient to best understand the matter; therefore, the problem will be analyzed within the international context.
An additional cause, aside the diminishing resources compared against the increasing demand, could be given from within the United States and would materialize in an unstable economy and a weaker dollar, which is less trusted by the exporting countries. Then, the country possesses limited capacity to refine the oil, and these facilities are restricted by an increased demand, technological limitations and even environmental concerns, which force them to increase operating expenditure and eventually influence the retail price. Other reasons, this time outside the United States, could refer to increasing political tensions between importing and exporting countries, but also the global regulations imposed by various organizations influencing the market of oil and gas.
The next step in this direction will be to identify the international institution in charge of monitoring the market for oil and gas. This organization is generically OPEC, or the Organization of the Petroleum Exporting Countries. Thirteen countries are currently members of OPEC and they are (in alphabetical order) Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and finally, Venezuela (Official Website of OPEC, 2008). It will be interesting to see the behavior of the countries in the organization, whether any military or political tensions...
All these factors have added too many variables to the Middle East, an important region for crude oil production" (Xuequan, 2008). 4. Conclusions The improved standards of living have contributed significantly to an increase in the population's demands. And to satisfy these demands, with the ultimate scope of registering higher profits, the American corporations have abused the natural resources and are now moving towards the resources in other countries. Two such
Oil Market & U.S. Economy In June 2008, when the price of oil had crossed $120 per barrel, the predictions for the impacts on the U.S. economy were dire. Whereas just months previous, prices were expected to top out at $100 before returning to a more reasonable equilibrium point (Schoen, 2007), now the potential of $200 barrel oil came to pass, bringing with it economic catastrophe (Biderman, 2008). The short version
Producer Symbolism) at that time, the oil balance of these countries was not as critical as it is today, and they were not really depending on "foreign" oil. The entire situation changed with the October War which started shortly after midday on Saturday, October 6, 1973 with a concerted attack by Egypt and Syria on Israel. (Oil Price History and Analysis) At the same time, one has to remember three
Few states taxes increased during the run-up of early 2008. Refining costs also account for 19% of the price at the pump. Most refining takes place close the market, although the U.S. is served by some refineries in the Caribbean. The greatest amount of U.S. refining capacity is along the Gulf Coast (EIA, 2009). There is no evidence that an increase in refining costs occurred to justify the price increases
This will require the evaluating organization to determine which competitors are already successfully entrenched in more innovative and 'green' auto designs, which are growing in market share for adopting such innovations and which are shrinking for failing to do so. The power of this knowledge should allow an organization to make constructive decisions about segmenting its own approach to a market which still depends on fossil fuels but which
If Nigerian local content law is not complied with Requires licensee to submit a detailed programme for recruitment and training of Nigerians (Nigerian Local Content Policy) 2.3. History of the LCL The Local Content Law was signed into law in April 2010 by acting President Goodluck Jonathan. In brief, the Nigerian Oil and Gas Industry Local Content Development Bill 2010 places "…obligations on upstream oil companies in the areas of finance, community
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