Comparing Oil Prices
The fluctuation of oil prices are dependent on numerous factors controlled by the way oil companies operate in the United States. Other variables exist external of an oil company’s control, due to rules and regulations that are associated with various environmental agencies. The most common are the import and export capabilities and limitations, the cost of production, and the supply and demand consumers possess dependent on the time of year. All of these elements will seem similar in nature yet yield an inverse reaction that is reliant on the current price of oil.
High oil prices hold different opinions with the public. When oil prices are high and the market is thriving, the gasoline prices will follow. This is where consumers dislike the higher prices, unless family members are employed in the petroleum field. This guarantees a stable jobs for those employees. You …show more content…
This is where other countries can control the price by shipping large volumes around the world. The more oil we import signifies that there is a great demand in the United States. This is when you see the prices rise. With these higher prices, drilling companies can afford to drill more wells at a faster rate producing large volumes to meet the demand of America’s consumers but also the demand of other countries like Asia and South America. It can cost anywhere between 3 Million dollars to 25 million dollars to drill a well contingent on the location and type of oil. Once the well is drilled there is a cost to continually bring it out of the ground. Companies call this the uplift cost. The goal is to reduce this uplift cost by minimizing electrical cost,