Hey guys,
For this post I would like you to :
1.) read this article on skyrocketing gas prices. If you are a driver do these prices have any impact on choices you make about driving? If you are a non driver what are your parents thoughts on the rising prices and does it affect their decisions to drive?
2.) Watch the following video on supply and demand and relate how the crisis in libya posed in the first article might help to explain why prices for gasoline in the US are rising so much
Thanks
Mr. Allen
As my parents drive me places or occasionally pick me up from school, we sometimes have to stop and buy gasoline. I had noticed how the gas prices had been slowly rising, and my parents, with much exclamation have as well. On a regular basis my family does not have to drive obscene distances. I take the bus to school, but if I was driven that would be a 11.5 mile round trip which adds up everyday. My family owns two cars, one with very good gas milage (A hybrid) and one with poor gas milage (An old mini van.) Often my father explains how the poor milage car only gets about 20 miles a gallon and how it is costing us a lot more money to drive it compared to the hybrid. He would like to by another car, but there is no money to do so.
ReplyDeleteBecause of the Crisis in Libya many places that the Unites States gets their oil from are being cut off. This means less oil for the U.S.A. The rising prices of gasoline are largely the outcome of this. This can be explained by Supply and Demand. The biggest goal of companies is to make money, so they will try to get as much oil as possible in a situation like this. Then the companies will slowly bring up the prices trying to make the most profit, and supply more when that price is high. Eventually people will buy less and the companies will have to bring down the prices, but they will supply less gasoline until the prices rise again. We all, right now are dependent on oil for transportation, heating etc. When there is less oil it is more valuable.
1) I am not a driver but I do notice the effect on gas prices when my friends drive me places and ask me to contribute to their gas money and when my parents drive me. It does not affect my parents as much when they worry about driving far places because usually it is for work and they have to be there and there is nothing they can do about it. I notice with my friends and young drivers that they are more conservative with their gas and that they car pool and cut down long rides better than my parents do.
ReplyDelete2) There are more and new drivers everyday needing more and more gasoline also because of the harsh weather in some areas of the united states there is a larger demand for gasoline making the supply go down which is raising the prices.
I have my permit, so i'm kind of a driver, but my parents drive much more than I do and the gas prices have much more of an effect on them than they do on me. Like probably everyone else, the rising gas prices do not make them happy. It probably affects them somewhat when driving, like if we're on our way home and we have to go to a place that is out of the way, we'lll just wait until we're around there to stop by.
ReplyDeleteThe conflict in Libya probably can relate to our rising gasoline prices because we get our gas from that part of the world and things over their aren't too peachy at the moment, so getting gas isn't the first thing that pops into their minds. Therefore, there is probably a lack of gas and oil being drilled or what have you. Since there is a lack of supply, they have to make up for the lack of supply by rising the prices. For ex. if a store has 10 candybars and sells them for 2 dollars each, they will make 20 dollars that day. Say the next day the store only gets 5, to keep the profit they always get, because the supply is low, the store will charge 4 dollars for a candybar instead of 2 to still get 20 dollars at the end of the day.
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ReplyDelete1. Obviously as a freshman I do not yet have a permit to drive so the rising gas prices do not effect the distances that I drive. But, my parents are constant drivers who drive me to school and many other places. The rising gas prices do not make my parents happy but they still have to drive for our transportation. We almost always try to take the shortest route to conserve gas. Our cars also have decent gas mileage so that helps save gas. Theres not really anything else we do to conserve gas that affects our driving decisions.
ReplyDelete2. The occurring crisis in Libya is partially causing the rise in gasoline prices for the United States due to the concept of supply and demand. Since there is less oil trade with the United States due to Libya, and there is still the same high demand for oil, the price of oil will rise because there is a higher demand then there is supply. In a hypothetical situation, if there was a sudden abundance of oil for and the demand for oil was not equal to the supply. The price of oil would eventually decrease because there is not a demand for the supply available. When supply goes up, demand will in opposition go down.
Right now I currently have my permit, and have been thinking a lot about the costs that come along with driving. That also involves the cost of gas, which obviously has been raising pretty quickly. When I get my license I know the price of gas will really make me think about if I really need to drive or if I could get there another way. I know that I won't want to pay for gasoline but I also know that my parents won't either, and since it's so expensive, I will deffinatly need to get a job. Also, if I get a car, then I would really want to make sure that it has good gas mileage to help cut back on the costs.
ReplyDeleteThe prices on gas in the US are rising so much because there is less gas available because of the crisis in Libya. So, because there is less available the prices go up. The opposite would happen if there was more available, because then the prices would be lower.
1) I have a permit, but I don't pay for gas, so it doesn't really affect me directly. My mom drives a lot for work, but she doesn't really compain much except for when she sees gas for a better price than what she paid when she filled up her tank. I think she's kind of accepted that gas isn't going to get any cheaper
ReplyDelete2) Well, the video kind of counfused me more than anything, but simply, if there's a crisis in Lybia, not only is oil probably not being tapped as frequently, we have to problem of shipping which could face issues depending on the crisis, and at the same time we have an increased demand because summer is coming and people are driving more. So my common sense tells me if there's less oil and more people who want it, prices will go up, because oil will become more valued per unit by customers.
1. I have my liscense and through first hand experience I can say that it is frustrating spending your own money on gas. However, I did work all summer and paying for gas is a necessity for me and I would rather pay the gas price than not drive at all. I have a very inelastic demand for gas because my demand would remain constant regardless of price.
ReplyDelete2. The crisis in Libya is concerning for the United States and its citizens. While the demand for gas is still high in the U.S., the supply will decrease due to the happenings in Libya. This is something that is unfortuneate as the gas prices will rise and that means less money in the pocket of everyone who drives a vehicle in the United States.
1.) I am not a driver, however I have noticed that gas prices are rising. My parents make sure to drive only when nessecary with gas prices the way they are. Also with the expensive prices, my parents will drive a car with better gas milage or car pool whenever possible.
ReplyDelete2.)Because of the crisis in Libya, we are having a hard time getting oil from them. Also, because less oil is being retrived in the country, prices of gas go up in the U.S.
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ReplyDelete1. I have a permit but I do not pay for gas. I don't here my parents talk about gas prices much except when contemplating where the lowest price is.So overall my life is not affected by the gasoline prces and by the way my parents act I don't think it affects them too much.
ReplyDelete2. In Libya, they aren't going to drop their conflict to go get oil, so that is one countrt not producing oil. Since there probably is not going to have any oil coming from it for a while the quanity of oil will go down meaning the prices go up.
1. I only have my permit, so I don't have my own car and I don't use my own money for gas yet. My brother and sister both have their licenses, and on occasions when they really need gas they always try to find the lowest price in the area. My dads job includes driving around a lot, so the rising gas prices really effects him. Whenever we go out as a family, we always drive in the same car as to not use up as much gas. Going to and from college, my sister tends to take the train instead of having my parents drive her. We also carpool if we can
ReplyDelete2. Due to the crisis in Libya, oil supply is being decreased day by day. Because of supply and demand and the fact that oil is used so much in the US, oil prices will rise due to the shortness of supply. The demand is going to stay at a somewhat constant rate, until people find alternatives for oil, such as wood or charcoal stoves instead of ones that require gas. Until this happens, gas prices are bound to keep rising.
1. Although I do not have my drivers license yet, I am planning on taking my drivers exam in the next couple weeks. I have always paid attention to gas prices, but I have never paid them. As a near future driver I am extremely nervous about the high gas prices and lack of money in my wallet. Anything done to lower gas prices would be greatly appreciated by me. Tapping into the oil reserve would become a good way to lower prices now, but know one knows how much we could need this oil in the future.
ReplyDelete2. Libya is in a crisis and because of this the oil that we get from them has significantly decreased. Since the supply decreased the price goes up, this directly relates to supply and demand. Without Libya's oil the gas prices will continue to rise.
1. I don't have a license, I have my permit. I don't own a car yet, or pay for gas, although I do pay for some of my brothers. It definitely affects my parents thought on driving, they've already been driving less and I'm sure that my brother will drive less. Because of these gas prices I find that I will try to drive the minimum amount.
ReplyDelete2. Oil prices are rising because of the crisis in Libya. The oil supply is going down every day. The US sadly depends on oil a lot, so it still needs to get this oil. But, that means that the gas prices have to go up to reach the demand. Sadly, the prices will keep on rising since we have no real alternative for it.
1. I don't drive, but it definitely affects my parents decisions on driving. They try to be more efficient in their trips, they try to take the shortest route, and they don't drive places if it's not necessary. For example, my parents only drive me and my siblings to school if we miss the bus or have to be there before the bus would get us there. I have tried to convince my parents to get a hybrid car because they will save us so much money on gas that eventually it would pay for itself, but unfortunately 'eventually' isn't soon enough.
ReplyDelete2. The current crisis in Libya is affecting the price of gas. The U.S. gets most, if not all, of its oil from Libya, and due to the crisis in Libya, Libya is unable to supply us with the oil that we depend on to drive our cars, heat our homes, and many other things. The demand for oil has stayed the same, but without as much oil being able to be supplied, the prices have been raised. Until the crisis in Libya has been solved, the gas prices will most likely continue to go up.
I am not a driver yet, and so I asked my father what his thoughts were regarding rising gas prices and its effect on his driving habits. He drives a hybrid Toyota Camry that gets roughly 28.5 miles/gallon (34 mpg in summer weather). Although he does not like paying roughly 25% more for fuel ($3.50 today vs. $2.70 last year), the extra cost of approximately $560 (21,000 miles travelled annually/30 mpg x the $.70 gas price difference) is relatively small in comparison to the surge caused by heating oil rising this winter. We consume 1350 gallons of heating fuel during the winter which probably cost $1100 more year over year. He usually takes his car over my mother’s Toyota van on the many hockey games played by myself and my brother, as the mileage on the van is just 21 mpg. The higher gas prices have not yet caused him to not make or consider a trip, nor have they influenced him to carpool to save money, but there may be a point where the costs become a bigger influence on that decision.
ReplyDeleteI did watch the video about supply and demand and how this may relate to oil prices rising as oil producer Libya is engaged in a civil war. Ordinarily oil prices would rise as supply is reduced through events such as the Libyan civil war. This is not the case here however. The reality is that other OPEC nations, mainly Saudi Arabia, have agreed to increase production to compensate for any shortfall in supply from Libya. Libya accounts for only about 2% of the world’s supply of oil, though it does supply a good deal of the high grade light sweet crude. Price is often heavily influenced by market makers taking advantage of a “fear trade”- in this case, the possibility that the conflicts that have engulfed both Egypt and Libya may spread to more important oil producing nations like Saudi Arabia, which accounts for nearly 30% of the world’s supply. On the basis of the equilibrium supply/demand pricing for WT Crude (currently at $101.50) the analysts have suggested that an appropriate price range is roughly $85-$90 per barrel.
1. I have my permit and even though I don't have to pay for gas yet, I've had to stop to fill up the tank. I can't help but notice how high it is. It definitely affects how often and how long I get to drive. Gas prices add up quickly and make it harder for me to finish my hours.
ReplyDelete2. Oil prices are rising primarily because Libya is in a civil war. Libya isn't getting to supply our country with the same amount of oil, even though the demand has roughly stayed the same. The prices are going to continue rising until the crisis is resolved, but until then, the demand is going to decrease. This is because people will most likely cut down on their use of oil to not spend so much money. Instead of waiting around for the price to go down, it would help the entire world a great deal if we could find some alternative.
1. As I do not drive the gas prices do not effect me head on but my parents do drive me around as well as every day to and from school, I see the gas prices continue just keep going up, but I know with summer coming and traveling happening they could go up but I suppose with the heat off they could go down.Anyway my parents really have no other option then to drive and the prices really din't effect them, well maybe their wallets but not their amount of driving.
ReplyDelete2. With the demand for gas always being high but now the resources are being cut off the supply has to meet the demand making the prices go up, they need the supply, they demand it,and sellers cash in on this demand by raising prices. So by cutting off the libya resources made the other supplies they have worth more money.
1. I have a permit, but my parents are usually the main drivers who pay for the gas, which results in no direct impact towards me. Though, the increased gas prices affect my parents significantly with our new car after our old one was wrecked in a car accident. With these losses of money, it does affect my parents money-wise, but not their driving. Even if the prices, my parents still have to work, go out for the essentials, etc which push them in a tough spot. For instance, my dad doesn’t care much on the prices whereas he has to drive 30-45 minutes away for work.
ReplyDelete2. Relating to gas prices and the crisis in Libya altogether with the information in the video, it shows that the U.S. have higher gas prices because the U.S. has Libya as one of its suppliers of gasoline, and the crisis there is preventing the import of gasoline. This means that the U.S. is losing more of its supplies of gasoline as it tries to meet the demands of the citizens. With the demand high and the supply low, the result becomes our current gas prices which are greatly larger than it was a year before.
1.) I've had my permit for about 3 months so I've had to put gas in the car a few times, but I've never had to pay for it. It certainly doesn't affect me directly, but since I'm living off my parent's money right now, it does in the long shot. We were actually planning a minimum 17 hour car ride to Myrtle Beach, South Carolina, a trip we did last April vacation with ease. But, because of rising gas prices, my parents have kinda decided that a trip that expensive may not be such a smart idea. Honestly though, I'm pretty nervous for when I have my own job hopefully this summer and have to start paying for gas on my own.
ReplyDelete2.) As we lose our imports of oil from places in the Middle East, Libya more specifically, the demand for oil increases dramatically. This is because supply and demand share an inverse relationship in which when less oil is in supply, there is more demand. These prices also go down only if more oil is in supply.
When we hit a crisis such as this one, there is a devastating loss of oil that our country needs. This leads to demand increasing while our country doesn't have the oil to fuel citizen's gas hungry cars. That is why Obama's executives believe we should tap into our oil reserve. This will put more oil in supply, ultimately decreasing demand and also decreasing gas prices altogether.
1.) I don't drive yet. My parents or sister drive me to school everyday, so the gas prices have a large effect on them. We also drive up to sugarloaf every weekend, which is a 2 and a half our drive one way. So my parents try to make sure that they aren't going places unless it isn't nessasary and, they also try to do many different errands on one trip so that it conserves gas.
ReplyDelete2.) The reason that the crisis in Lybia is effecting the oil prices here and around the world is because, the amount of oil that the U.S. uses stays the same, where as the production amount of oil goes down. This mean there is less oil being produced but the amount we use stays the same, so in order to keep things working and to make a profit, oil companies need to charge more per barrel.
1.) the gas prices are rising very quickly. I am not a driver myself but i might be getting my license soon and i have seen the gas prices and i am now realizing that im going to need to start saving money so i can buy gas. My parents think it is ridiculous and the prices dont look like that are slowing down or stopping anytime soon.
ReplyDelete2.) when the supply of an item is going down, the cost goes up. This is a big deal because the gas in libya is going down because of the events occurring there and everyone needs gas from there, not only us.
1-i have my permit, so im kind of a half driver. the rising gas prices have not affected me too much but ive seen how they effect some of my friends who have there licence, they are always very conservative about where they go, and how far it is.
ReplyDelete2-the problems in Libya are slowing the supply of petrolium, and as supply goes down the price has to increase to remain profitable
My parents thoughts on the rising prices is they think its ridiculous. I always hear them complaining how much they spent on gas that day, and how they find it crazy prices goes up so fast. It doesn't really effect how much they drive, because either way they have to get to where they have to be. I know they try their hardest to take the shortest routes possible and we don't drive around anymore just to drive around. We only drive to places we need to be at.
ReplyDeleteThe reason why prices are rising up so much is because there isn't a lot of oil in Libya, and the demand for oil gets higher, so the prices get higher.
1. I am not a driver but as a non driver it does effect me quiet some bit. My mom and my sister (people who typically give me rides) always complain about the rising prices. I actually had to pay my sister for a ride to the school just because gas prices suck.
ReplyDelete2. The crisis in Libya is causing at least 300,000 barrels of oil to be cut. When there is less Oil the price goes up. The video pretty much explained how when The supply goes up the price goes down, and when the supply becomes smaller the price goes down. There is less oil so the prices are going up.
1) I am not a driver just yet but my parents and my friends parents are always dealing with this issue. When I go to soccer practice in Portland, my teammates and I carpool to save gas because otherwise we would all be wasting gas going up there.
ReplyDelete2) The video describes how when there is less production (supply), there are higher costs (due to demand). So, when Libyan oil is not coming into the country, many of the other countries can increase their prices because they will make money off the desperate people who need gas.