APA RESEARCH PAPER

APA Research Paper

High Oil and Gas Prices

“Oil and Gas prices were at a record all time high for numerous reasons. Some of the reasons have to do with the crude oil supply? offshore drilling controversy refinery capacity? and the worldwide market. When gas supply is low due to refine oil the price of gas increases. High oil prices are affected by supply and demand and oil price futures because prices fluctuate daily? which affect the prices. Life's events also contribute to the cost of oil and gas prices. Some of life's events that have contributed to the rising cost of oil prices are Hurricane Katrina? War and Oil Prices? and the recession. Wars? recession? and devastating weather are the main external factors that can affect oil prices. The Hurricane slowed production around the southern coast? which increased the barrels of oil. The war in the Middle East increased barrels of oil to $136 a barrel due to global issues. The suppliers were unable to convince buyers that they would be able to properly deliver oil that contributed to the increase in oil prices. The recession has decreased the oil demand due to the high prices? which in turn decreases the price of oil.

Oil and Gas is shows how it effects our economy? oil futures has a lot to do with the affects do to buying and selling and the time that the oil and gas is purchased can cause an increase in the gas prices even when oil prices are low. One of the problems is that the world's oil production is too dependent on a small number of giant fields? most of which have been pumping oil for over four decades. It is not enough that production remains flat since producers are forced to make up for decline rates. Unconventional production from offshore drilling? heavy oil deposits or even oil shale's will be able to help? but won't be

Enough in the long run. The price of crude oil is not something entirely beyond America's control regrettably; most of that oil has been placed off-limits to production by presidential? Congressional? and state moratoria on exploration and development. The primary reason for high gasoline prices? as any economist will tell you? is very simple: demand for oil and gasoline is high? and the available supply is limited. Even though there is a limited supply? there are reserves.

The strategic petroleum reserves are the world's largest stockpiles of emergency crude oil. The oil is kept underground in off the coast of Mexico and holds 700 million barrels. This reserve can replace approximate 2 months worth of imports? if needed. To qualify as a reserve they must be discovered? commercially recoverable? and still remaining. They are also categorized by the level of certainty associated with the estimates such as quantities of petroleum estimated? as of a given date? to be potentially recoverable from known accumulation.

Crude oil is used in many ways other than gasoline such as natural gas? and heating ...