Cause And Effects On Todays Rising Gas Prices Term paper

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Oil and Gas: How Both Affect the Economy
The economy is affected by many factors that determine if it is strong or weak. These factors have to do with buyers consuming goods and services and at what rate ...
Cause and Effects on Today's Rising Gas Prices Natural gas is not a renewable resource, since there is a fixed amount of it trapped in the Earth. However, many people carry the misconception that there is a very limited amount of natural gas, and that we may use all of it up. This isn t true. The gas shortages of the 1970's were prompted by the government s lack of faith in the industry s ability to discover and develop
Oil And Gas: How Both Affect The Economy
The economy is affected by many factors that determine if it is strong or weak. These factors have to do with buyers consuming goods and services and at what rate ...
new reserves, not by lack of gas supply. The unfortunate impression left by the shortages of gas in the 1970's is that there is little gas left to be discovered. On the contrary, the gas resource base is vast, and probably even larger than currently estimated. People are often confused by the difference in "proved reserves", those that could be economically produced with the current technology, and the total natural gas resource base. Natural Gas Week (see note) I am
Oil And Gas
The economy is affected by many factors that determine if it is strong or weak. These factors have to do with buyers consuming goods and services and at what rate ...
presenting an informal study on the cause and effects of today's rising gas prices. There are two views as to the cause to these skyrocketing gas prices. The newspaper articles and The Associated Press are linking the problems to the "Organizational of Petroleum Exporting Countries (OPEC) cutting its crude oil production by roughly 8 percent last spring". This statement is true but there is a reason behind OPEC's decision to decrease production. This reason ties into the second view as
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to the cause of rising gas prices. As I had suspected all along, the reason for the increase is a slowing in production that is directly linked to the changing industry and technological standards. There's a new kind of business in town and its name is electronic commerce (e-commerce or e-business). One of the basic fundamental principles of e-commerce is the just-in-time practice. Proctor & Gamble founded just-in-time practices. "As part of the Efficient Consumer Response (ECR) program, (developed
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by the grocery industry) consumer packaged goods giant Proctor & Gamble, with headquarters in Cincinnati, Ohio, developed a continuous replenishment program (CRP) that gained industry wide attention. CRP eliminates unnecessary cost, such as warehousing and handling, by keeping products moving through the supply pipeline instead of storing them in warehouses or distribution centers". The shipments are tracked by a timely, paperless flow of information known as the transaction processing system (TPS) and are delivered on a just-in-time basis. This strategy
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saves money by lowering inventories and administration cost, while reducing warehouse space. The Gas Research Institute (GRI) observed this new trend. GRI's Baseline Projection makes three key observations about trends in energy markets, here are the two that pertain to gas prices: "Gas supply will increasingly rely on higher production from the deeper waters of the Gulf of Mexico and increased Canadian imports. These two sources will become the pillars of supply necessary to meet growing gas demand. However,
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English 101 October 31, 1998 Global Warming Global Warming is an important ecological issue because it has several negative effects upon our environment. Global Warming, or what has been called ...
they will aggressively compete with each other to provide the incremental supply and to meet demand in specific regional markets. The outcome of this competition will depend on the availability of pipeline capacity, the cost to develop the resources, and, ultimately, price competition. Natural gas producers will increasingly implement "just-in-time" development practices that will allow the gas production industry to reduce risk and quickly monetize in-ground natural gas resources. This change in production methods implies lower resource/production (R/P) ratios,
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Global Warming Global Warming, aside from pollution is one of scientists biggest concerns. Global Warming is caused by the Greenhouse effect. There are 4 steps in the Greenhouse effect ...
which could pose supply reliability issues and increase the risk of price volatility. However, the new approach benefits customers by offering lower average costs." As predicted, the new approach has indeed, created supply reliability issues and price volatility. I had suspected this was the cause all along. In my Information Technology class, I was taught the theory of just-in-time practices. It was predicted that all major companies in any industry, world wide, would turn to these practices because of the
Policy Memo: Global Warming
Global Warming Is A Serious Issue That Should Have Immediate Attention As Vice President Al Gore has said about the threat of global warming, it is "the most serious problem ...
development of electronic commerce (e-commerce). In order for businesses to stay competitive, they must employ just-in-time practices that will allow
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