Oil And Gas Research Paper

The demand for oil or gasoline in the United States is on a steady rise. With the increase of automobile users every year how can we afford to drop the price of gas. People are buying it, whether the price rises or falls, so why not keep it at a steady price. This all has to do with how oil firms perform in the short and long run. Also what and how much government influence has to deal with the way the price changes. Gas and oil prices play a major role in our economy, so when they rise or fall the outcomes are different and effect all markets.

Consumer spending has a major effect on the way our economy runs. Whether the average American is spending too much or not enough is something that many economists analyze when dealing with the economy. …show more content…
In fact, the government has very little say in what oil companies do, this is because oil is a globally traded commodity among many nations. Therefore, the U.S. has to follow the rules and prices that are set and shared among the world. Even though the government can’t influence the firms doesn’t mean the firms can’t help stretch their influences and beliefs on the government. What I mean by this is that these companies need various approvals of projects they wish to seek in the future like the keystone pipeline, and the expansion of natural gas exports. Without the governments approval these missions and projects wouldn’t be able to be accomplished. Companies try to get their point across or get their views taken into account by doing various tactics which include lobbying, or donating money to the candidate that holds the same …show more content…
Consumers all around the world depend on this natural resource for everyday use. Since its something that plays a key part in the running of our country it doesn’t matter the price or how difficult it is to obtain this resource we will eventually find a way to get it. Meaning that gas and oil are an inelastic good for the fact that the world simply would not run without its existence. Based on this gas prices don’t just rise and fall for no reason they simple are based on different variables, how much a company donates, the amount of the resource that are available, and what type of profit a firm can achieve, so next time you’re at the pump just remember there are a ton of factors for the reason the price is too high or just