...significant oil and gas producers. Malaysia holds the world’s 28th largest crude oil reserves with proven oil reserves of 4 billion barrels. Malaysia is also the world’s 13th largest natural gas reserves with a 33 capacity of 2400 billion cubic meters. Regarding to this, the development of oil and gas industry in Malaysia bring some impact to us. Mining in the past few decades in the oil，it brings some effects on economic, social and environment to some developing countries led to a huge problem. As one of the nation's main commodities, oil and gas has a very strong impact on the Malaysian economy. Our Oil and Gas team with its industry professionals and worldwide capabilities is ideally placed to help companies...
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...There are many factors that go into determining the price of a gallon of gas. The cost to crude oil refineries, refinery processing costs, distribution and tax all account for the high prices consumers are paying. Tax alone can makes up about 19 percent of the cost. While the price does fluctuate, it is steadily increasing. Between 2004 and 2005 the price of crude oil per barrel rose from $36.98 to $50.23 as reported by the Energy Information Administration. Fluctuation in price can be brought on by oil supply disruptions, such disruptions can stem from events from around the world. Disruption of production at refineries can raise the cost of gas. (Davis, 2007) In Atlanta, gas averaged less than 90 cents a gallon in early 2002, then rose steadily through the next several years, cresting at $3.15 after Hurricane Katrina in 2005. But prices moderated, falling to less than $2 a gallon in early 2007. Falling oil prices dampened gasoline’s cost this summer — until the hurricanes hit the Gulf. (Kanell, 2008) Such a disruption occurred after Hurricane Katrina hit the Gulf of Mexico and surrounding areas, where a number of refineries are located. The further you are from the gulf area, the more likely you are to find yourself paying more at the pump. It is a common occurrence to be driving down the road and to see that gas prices vary significantly from station to station. Competition between gas stations is a source of price variance. Some stations are even sending employees to...
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... Everyone’s Gasoline Problem Since September 2010, average monthly gas prices have risen 45 cents to $3.21 (February month-to-date), an increase of 16.4%. But during the past four years, there have been several periods where gas prices increased by even more substantial amounts. In 2008, gas prices rose 94 cents — or 33.4% — to $4.11 between February 2008 and June 2008. Gas prices also increased 63 cents from February to May 2006, 86 cents from February to May 2007, and 94 cents from December 2008 to June 2009. (http://www.edmunds.com/about/press/current-gas-price-hikes-dont-measure-up-to-recent-history-says-edmundscom.html). Prices fluctuate at the pump because of problems in the Middle East, natural disasters and government regulation. Crude oil also plays an important role in gas prices. Crude oil is a natural substance found underground that is used to produce fuel for cars, trucks, airplanes, boats and trains. As of February 2012, crude oil prices made up 72% of the price of gasoline. (http://useconomy.about.com). For every $1 increase in the price of a barrel of crude oil, U.S. consumers are likely to pay 2-1/2 more cents for a gallon of gasoline. The prices that we pay at the pump are determined by supply and demand. For example, if demand rises and supply falls, prices increase, and just the opposite when supply increases and demand decreases, prices will decrease. Being an inelastic product, few substitutes are available. The price does not have much effect...
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...Spring 2011 Everyone’s Gasoline Problem. We are all familiar with fluctuating prices of gasoline at the pump. Why does this happen? Research the recent history of gasoline pricing in your area, and attempt to relate any fluctuations you observe to documented supply and demand factors, as outlined in our book. By the end of the 6-week period of November 19th –December 31, gas prices in Chicago had risen significantly. In it’s bi-monthly newsletter at the beginning of January 2011, the Lundberg Survey, a report which tracks gas prices, points to Chicago for the highest gasoline prices nationally topping the charts at an average of $3.35 per gallon for regular. With Illinois already high, 58.8 cent gas tax coupled with the city of Chicago’s gas tax of 50 cent a gallon any nationwide increase in gas prices will be even more significant in Chicago (1). Gas prices vary widely from state to state based largely on local taxes placed on the inelastic product. But prices have been trending higher nationwide after an increase in the price of crude oil, the main ingredient in gasoline (2). In Chicago, just as in the rest of the U.S., there was an increase in demand for oil during the period of November 19th –December 31, 2010. This increase in demand is illustrated by the decrease in U.S. crude oil inventories. Between the mentioned period of 6 weeks, crude oil inventories declined by 21.84 million barrels (3). These declines were a result of increases in gas consumptions, which also translate...
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...Spring 2011 Everyone’s Gasoline Problem. We are all familiar with fluctuating prices of gasoline at the pump. Why does this happen? Research the recent history of gasoline pricing in your area, and attempt to relate any fluctuations you observe to documented supply and demand factors, as outlined in our book. By the end of the 6-week period of November 19th –December 31, gas prices in Chicago had risen significantly. In it’s bi-monthly newsletter at the beginning of January 2011, the Lundberg Survey, a report which tracks gas prices, points to Chicago for the highest gasoline prices nationally topping the charts at an average of $3.35 per gallon for regular. With Illinois already high, 58.8 cent gas tax coupled with the city of Chicago’s gas tax of 50 cent a gallon any nationwide increase in gas prices will be even more significant in Chicago (1). Gas prices vary widely from state to state based largely on local taxes placed on the inelastic product. But prices have been trending higher nationwide after an increase in the price of crude oil, the main ingredient in gasoline (2). In Chicago, just as in the rest of the U.S., there was an increase in demand for oil during the period of November 19th –December 31, 2010. This increase in demand is illustrated by the decrease in U.S. crude oil inventories. Between the mentioned period of 6 weeks, crude oil inventories declined by 21.84 million barrels (3). These declines were a result of increases in gas consumptions, which also translate...
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...topics that we have been facing. What impacts does global warming have on the atmosphere and what actions can we take to rectify the problem. Does global warming exist and what can we do about it? Global warming is caused by natural and human interference. Some global warming differences with natural and anthropogenic climates changes are, natural climate changes include volcanic activity and anthropogenic changes are caused by human influences such as burning coal oil. I believe that global warming is taking place; climate change has already had observable effects on the environment. Glaciers are shrinking, ice on rivers and lakes are breaking up earlier, plants and trees are flowering sooner. The changes in the weather is one indication, many places have been experiencing more floods, droughts and more severe heat waves. According to the Environmental Protection Agency (EPA), the average surface temperature across the contiguous 48 states has risen at an average rate of 0.13°F per decade. Average temperatures have risen more quickly since the late 1970s and seven of the top 10 warmest years on record for the United States have occurred since 1998, with 2012 being the warmest year on record. A second indicator is the change in the sea level. After a period of approximately 2,000 years of little change, sea level averages has rose throughout the 20th century, and the rate of change has accelerated in recent years. When averaged over all the world’s oceans, total sea...
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...net I researched gasoline prices in the Kansas City, MO area from 2006 to 2013 along with the number of cars and trucks sold in the area to see how the gasoline prices may have affected supply and demand in that market since they are complementary goods. The price of gasoline can change for many reasons, including natural disasters, refinery problems, political unrest, war, the price of crude oil and wholesale gas, and trade disagreements between countries, to name a few. For simplicity sake, I am focusing on the 2 most drastic points I found. The highest point was in July 2008, when the price of gas reached close to $6 a gallon, and the lowest point was in the winter months of 2008, when the price fell to less than $1.50 per gallon. When the price of gas gets high enough, some may curb their consumption, but gas has an inelastic demand so most people will still find a way to pay for the gas they normally use. In July of 2008 when gas prices were at their highest, auto and truck sales were steady with the sales done in the prior months of 2008. In August the sales for both went up, they fell in September, raised some in October, and plummeted during November and rose again slightly in December. Truck sales in December had the largest increase and overall new car sales had the largest decrease. All of this proves to me that gas does in fact have an inelastic demand. People want it and need it to do what they want...
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... Britain has a bigger workforce than it did before it tipped into recession in 2008 yet is producing far fewer goods and services. This mismatch between output and jobs has led to a collapse in productivity, a measure of how effectively an economy uses its resources that’s an important driver of future growth prospects. Bank of Mexico’s Carstens: Inflation to Move Above 4% URL:http://blogs.wsj.com/economics/2014/01/10/bank-of-mexicos-carstens-inflation-to-move-above-4/?KEYWORDS=inflation abstract:Mexico’s inflation is bound to move above 4% in coming months as a result of new taxes on some consumer goods, but the effect should be temporary, Bank of MexicoGovernor Agustin Carstens said Friday. Inflation measured by the consumer price index rose sharply in December to end last year at...
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...to everyone around us regarding the pricing for oil and gas. This is a topic that concerns most people on this planet, why are the prices for gasoline so high and is it regarding the greed of oil producing companies to continue to keep rising the gasoline prices as high as possible. We will talk about the many reasons why these fluctuating pricing keeps occurring within our world market. Introduction: Gas and oil pricing is a constant irritate for many of us who are not happy about the high cost of fuel and why it remains high. We can use practical results that can provide evidence to this very contention of high fuel expense if we do the right research. These explanations can provide some examples of why the costs are constantly affected in our everyday life. When crude oil is produced it provides the cost per barrel depending on how many barrels it’s producing, therefore if the price is $ 80 dollars per gallon it may in fact cost the consumer the same amount by the cost of fuel per gallon. (Rising Gas Prices) Article Review of Cheaper Canadian Oil Not Reflected in Midwest Pump Prices The following information within this article relates that there is in fact a variable that continues to cause and affect our Oil and Gasoline pricing. These pricing effects can either the cost of oil per barrel; the higher the barrels are the higher the cost of fuel will be indicated. The biggest factor in the region's gas prices has been the partial shutdown of the Midwest's largest refinery...
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...costs for food, housing, clothing and fuel has gone up. The high price increase for products has hurt the economy tremendously. The high rate of unemployment has contributed to the actual economy crisis. One would certainly think that there would be some relief at the gas pump. Gasoline prices are at breaking record levels. Many residents have a hard time affording the cost for fuel. Today people are finding themselves choosing different ways of transportation. Many people are hoping to see gasoline prices drop significantly which would provide a much needed relief to their budgets. The demand for gasoline has remained the same, as people continue to have a need for it. People need to drive their automobiles everywhere they go. This has not changed the demand for gasoline. The market for gasoline has also gone up. Wherever gasoline is cheaper, people will flock to buy it. The equilibrium for gas prices is not balanced. The price for gasoline varies from neighborhood to neighborhood, city to city etc. Some prices being lower, and some being higher, but overall still remains higher than previous years. The supply of gasoline in the United States is available, but the government chooses to purchase fuel from other countries. This in turn leads to higher gasoline prices. The United States decided that they would not drill off shore because of the last big oil spill. The oil spill cost the United States more problems for the economy. People who live and depend on support from the...
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...Chrysler: A Short History On June 6th, Walter Chrysler founded THE CHRYSLER COMPANY. It appeared as the Detroit’s third largest auto company after the World War 2. The Chrysler car was developed as a 6 cylinder automobile, which was designed with advanced engineering and sold to customers at a more affordable price than competitors. Chrysler Corporation reached second position in sales during 1936 because of advanced testing and engineering that went into developing Chrysler cars. Chrysler Crisis: Chrysler was on the verge of bankruptcy in 1979 and was in desperate need of 1.5 billion dollars from the federal government. Chrysler’s problem started back in 1960’s when the company expanded in the American and other global...
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...Everyone’s Gasoline Problem When it comes to issues in fluctuation in gasoline prices, supply and demand play a huge role. When prices fall, quantity demand will rise, when prices rises, quantity demand will fall. In most situations these are true statements, and it would seem that the demand for fuel would decrease when prices for fuel increase. Because fuel is a large necessity, this isn’t always the case. In the past few years oil prices have risen to an all-time high. The change in resource price has caused the supply curve to shift to the left. The increase in the price of oil, have reduced the supply of gasoline. Recently, especially in town’s similar Seattle where I live, People have begun to find alternatives to using gasoline. The current gas prices in Seattle are up to $3.88 per gallon, and this is just for regular. In the past month alone, gas has jumped from $3.76 per gallon, to $3.88 per gallon. Prices fluctuate for a variety of economic reasons, one of the main being supply and demand. The price of gasoline is determined by supply and demand. When the there is a decrease in supply, demand rises, and prices will increase. When consumers noticed the increase in price, they began looking for alternative solutions in transportation in order to save money, which have caused gas prices to slowly decrease. When the demand is less, the price may still decrease even when there is a lack in supply. In conclusion, last summer when gasoline was priced at over $4.00 per...
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...economic of Malaysia, the largest deposits of tin in the 1840s led to Malaysia is being responsible for nearly half of the world’s tin output. Started in the early 20th century, the booming of the country’s agricultural sector is being seen that the rubber is replacing tin as Malaysia main export product. Today, Malaysia is one of the largest exporters of semiconductors and electronic goods. The factories devote about 30% Malaysia’s total manufacturing sector output and there are 40 semiconductor companies operating in Malaysia. By the time, the International multi-national companies have set up assembly and testing units in Malaysia. The important reserves of oil and gas are founded. The oil production occurs near Peninsular Malaysia as well as the regions of Sabah in east Malaysia ad Sarawak. Natural gas production has been steadily rising with several companies engaged in its production. In 2007, the 3rd largest economy in South East Asia and the 29th largest economy in the world was the economy of Malaysia through the purchasing of power parity with gross domestic product. When one of three countries controls the Strait of Malacca and the international trade takes the role in the...
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...Economics GM545 January 2013 kellyl.hester@gmail.com Q1 – Everyone’s Gasoline Problem Gas prices fluctuate almost daily. Along with it are the pain and frustration of having to fill up my Jeep with gas weekly while hoping to get the lowest price in town. In my quest I have narrowed it down to the HESS station on one corner where there are two other competing gas stations in the city in which I live and the HESS station in the city where I work which are about 25 miles apart. While the demand for gasoline is inelastic, the elasticity for specific brands of gasoline is elastic. Brand preferences for homogenous commodities such as gasoline are weak (Stone, 115). If the QT Station offers a lower price than my preferred HESS station, I will definitely buy from the QT Station regardless of my preference. Competition among retail outlets thus affects pricing. More choices generally mean more competition for business. The marketplace forces of supply and demand determine the price of fuel. If demand grows or if a disruption in supply occurs, there will be upward pressure on prices. By the same token, if demand falls or there is an oversupply of product in the market, there will be downward pressure on prices (http://www.thepriceoffuel.com/whataffectsfuelpricing/). . Because of the disruption of supply during Hurricane Katrina, gas prices in my area of Charlotte, North Carolina rose to over $4.50 per gallon. As more and more consumers panicked about the possibility...
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...Economic Profile on the Oil and Gas Industry The oil and gas industry is one of the most talked about industries today, at least in my town it is. Everywhere I go I hear people talking about the rise or fall in gas prices or how the cost of a barrel of crude oil has just gone up or down .10 cents. I also hear about how the current hurricane season could pose a threat to the oil industry, as it did last year with hurricane Katrina, putting oil refineries under water or causing extreme damage to them. In this essay I am going to discuss the shifts and price elasticity of supply and demand in the oil and gas industry. I am also going to discuss the oil and gas industry’s positive and negative externalities, wage inequality, and monetary and fiscal policies. Lastly, I will discuss the economic affects and influence on the oil and gas industry. Shifts and Price Elasticity of Supply and Demand The price elasticity is the affect of the price for a good on the demand of that good. If consumers are not affected by the change in price then this good would be referred to as inelastic. If consumers are affected by the change in price then this good would be referred to as elastic. The oil and gas industry is inelastic when the prices rise because, although consumers slightly reduce their consumption of oil and gas, consumers still purchase oil and gas. With gasoline prices in the U.S. approaching an average $3 a gallon, Americans are moaning about the rising cost, but so far they are...
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