Friday, December 20, 2019

Causes of Rising Global Oil Prices Essay - 954 Words

Among the factors that often blamed the current price increases embrace the renewed geopolitical concerns in the Middle East, declining excess capacity in oil production, the production cuts agreed by the Organization of Petroleum Exporting Countries, the devaluation of U.S. dollar against other most important currencies, increased demand from rising countries and the noteworthy expansion in provisional dealings on oil futures market. Traders and speculators can earn from these changes in values through purchasing or selling Crude Oil CFDs (Kanter, 2008). Over the long term, Crude Oil is likely to go after strict lines of trend, if one is able to classify a trend appropriately then it is possible to get earnings from those moves by†¦show more content†¦The head of the Democratic majority in the Senate, Harry Reid, should also allow a vote on a Republican that would allow States the northeast and northwest to opt for offshore drilling, and a portion of their rights operations. Such flexibility would be a major shift in U.S. energy policy. For 26 years, Congress has renewed every year because the ban to drill along the coasts of the Atlantic and Pacific and eastern Gulf of Mexico. Today, offshore drilling off the U.S. coast is limited to the western Gulf of Mexico, where oil and gas for decades. However, the expansion of offshore drilling has become a credo reflected in the Republican campaign for the presidential and legislative elections in November, although this measure has little or no impact on gasoline prices for years (Caffentzis, 2008). Processes offshore drilling techniques used differ somewhat down, but the marine environment requires specialized equipment and leads to services. Exploration consists of geophysical surveys of large areas, made from aircraft and / or ships, core samples taken using various methods, seismic blast concussion or diverse devices, and test drilling for geological data. After the formations drilled selected from drill ships or temporary platforms, wells are drilled to delineate additional oil or gas discoveries and production tests are very broad to determine the parameters ofShow MoreRelatedRising Gas Prices1158 Words   |  5 Pagescontribute to rising gasoline prices. The major cause for increasing gasoline prices has to do with refining capacity. Even if oil were inexpensive, we would still have a problem converting it into the gas that fuels our economy. That is what keeps the gas prices high. When gas supplies are short, due to an â€Å"inability to refine crude oil into gas efficiently,† prices increase. This is a component of supply and demand economics. 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