Gasoline Term paper
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Why are we paying so much for gasoline? If you haven’t noticed you must not drive, but there has been a drastic increase in gas prices in the past year and a half. It seemed like just the other day when I was at the gas station and I said “Can I get 20 dollars on pump 3 please?” and that would guarantee a full tank of gas. But those were the good old days when gasoline was a low, low, low price of .99 cents per gallon. 20 dollars has my gauge reaching for the halfway mark on the gas meter. Nowadays it takes double that money to get a full tank. Anyone who drives a SUV has it the worst of all drivers. SUV’s have some the largest tanks and get the worst mileage. The last time I went to the pump it cost me 40 dollars to fill up my tank. That breaks down to almost $2 a gallon. That’s me dedicating a whole day’s worth of work toward filling up my gas tank. Who is to blame for all this?
The major culprits behind all these rising prices are the Big Oil companies. They decided not to produce their standard gasoline inventories due to the high costs of crude oil before Memorial Day of 2000. The cost of crude oil is $34 per barrel. Which leaves the Midwest fuel market highly vulnerable to supply disruption especially since supply in the Midwest is depends mostly on pipelines. In turn, three major Big Oil pipeline disruptions wreak havoc on the market because of the lack of gasoline inventories. With the lack of supply, brought on by decisions by the Big Oil companies, gas prices skyrocket in the Midwest. Now, the Big Oil companies gather record profit margins as a result of their own supply mismanagement. The Big Oil companies blame ethanol (a fuel made from corn to reduce emissions from the cars), to cover up their profit. Now, guess who is stuck with paying the price at the pump???
I was reading the paper and I read “California gas prices fall” and it mad me laugh. What did it fall to? The average price in Sacramento is $1.92 and falling a whole .2 cents from a month ago. Only a year ago you could have bought that same gallon for $1.46. The state average is now at a $1.85 with Lake Tahoe at the top of the list at $2.10 per gallon and Salinas at the bottom at $1.86
When the prices are $1.20 or below I would call that a fall but .2 cents is only...
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