Saturday, August 21, 2010

What does the price of oil affect in the economy?

Oil companies (due to no competition) have closed many oil refineries which has caused a much lower capacity of oil to be refined. This, in turn, not only causes the price of gas to rise but anything made of plastic to rise as well. http://www.consumerfed.org/pdfs/gasoline鈥?/a>





It affects so many different things (besides what is mentioned above by the other).





Here is a list of the many, many products that use petroleum to be made--Both lists are found on the same link. It seems that once I tried to click on the links that I provided, it said they couldn't be found.





There are roughly 6000 items made from petroleum. Only 19.4 gallons of gasoline are made from a 42 gallon barrel of oil. The rest is consumer products and things we rely on a daily basis.





It would be literally impossible to list all the things made from petroleum, but as you can see, when oil prises rise, so do many other things.





And, to boot, think of when these products get transported. By vehicles that need gasoline. Shoot, even precious metals increase in price because they need machinery to dig them out of the ground and then to refine them.





The following is just a partial list (could you imagine me researching and finding out every product that is affected by the price of oil?).





Here is a list of the many, many products that use petroleum to be made--First list found on http://www.saveandconserve.com/2007/05/p鈥?/a>








ammonia


anesthetics


antifreeze


antihistamines


antiseptics


artificial limbs


artificial turf


aspirin


awnings


balloons


ballpoint pens


bandages


basketballs


bearing grease


bicycle tires


boats


cameras


candles


car battery cases


car enamel


cassettes


caulking


cd player


cd's


clothes


clothesline


cold cream


combs


cortisone


crayons


curtains


dashboards


denture adhesive


dentures


deodorant


detergents


dice


diesel


dishes


dishwasher


dresses


drinking cups


dyes


electric blankets


electrician's tape


enamel


epoxy


eyeglasses


fan belts


faucet washers


fertilizers


fishing boots


fishing lures


fishing rods


floor wax


folding doors


food preservatives


football cleats


football helmets


footballs


footballs


gasoline


glycerin


golf bags


golf balls


guitar strings


hair coloring


hair curlers


hand lotion


heart valves


house paint


ice chests


ice cube trays


ink


insect repellent


insecticides


life jackets


linings


linoleum


lipstick


luggage


model cars


mops


motor oil


motorcycle helmet


movie film


nail polish


nylon rope


oil filters


paint


paint brushes


paint rollers


panty hose


parachutes


percolators


perfumes


petroleum jelly


pillows


plastic wood


purses


putty


refrigerant


refrigerators


roller skates


roofing


rubber cement


rubbing alcohol


safety glasses


shag rugs


shampoo


shaving cream


shoe polish


shoes


shower curtains


skis


slacks


soap


soft contact lenses


solvents


speakers


sports car bodies


sun glasses


surf boards


sweaters


synthetic rubber


telephones


tennis rackets


tents


tires


toilet seats


tool boxes


tool racks


toothbrushes


toothpaste


transparent tape


trash bags


tv cabinets


umbrellas


upholstery


vaporizers


vitamin capsules


water pipes


wheels


yarn





Second list found on http://www.saveandconserve.com/2007/05/p鈥?/a>





air conditioners


ammonia


anti-histamines


antiseptics


artificial turf


asphalt


aspirin


balloons


bandages


boats


bottles


bras


bubble gum


butane


cameras


candles


car batteries


car bodies


carpet


cassette tapes


caulking


cds


chewing gum


combs/brushes


computers


contacts


cortisone


crayons


cream


denture adhesives


deodorant


detergents


dice


dishwashing liquid


dresses


dryers


electric blankets


electrician鈥檚 tape


fertilizers


fishing lures


fishing rods


floor wax


footballs


glues


glycerin


golf balls


guitar strings


hair


hair coloring


hair curlers


hearing aids


heart valves


heating oil


house paint


ice chests


ink


insect repellent


insulation


jet fuel


life jackets


linoleum


lip balm


lipstick


loudspeakers


medicines


mops


motor oil


motorcycle helmets


movie film


nail polish


oil filters


paddles


paint brushes


paints


parachutes


paraffin


pens


perfumes


petroleum jelly


plastic chairs


plastic cups


plastic forks


plastic wrap


plastics


plywood adhesives


refrigerators


roller-skate wheels


roofing paper


rubber bands


rubber boots


rubber cement


rubbish bags


running shoes


saccharine


seals


shirts (non-cotton)


shoe polish


shoes


shower curtains


solvents


spectacles


stereos


sweaters


table tennis balls


tape recorders


telephones


tennis rackets


thermos


tights


toilet seats


toners


toothpaste


transparencies


transparent tape


tv cabinets


typewriter/computer ribbons


tires


umbrellas


upholstery


vaporizers


vitamin capsules


volleyballs


water pipes


water skis


wax


wax paper








Solvents--http://www.saveandconserve.com/2007/05/p鈥?/a>What does the price of oil affect in the economy?
oil is a key factor in the cost of transporting goods, so virtually anything that is moved from one place to another on the path from harvesting the resource, to processing it into a product and then delivering it to the point of sale would be affected.





To the extent that gas and electricity are substitutes for oil in some cases, you will also see the price of those commodities rise as plants and consumers shift from oil to gas or electric energyWhat does the price of oil affect in the economy?
EVERYTHING - even down to the milk and eggs you buy from the grocery store. Truckers are going on strike because its no longer viable for them to continue hauling goods with the current price of diesel over $4 a gallon. and as u can imagine it affects every kind of transportation.


-airline industry


-auto (has also caused new legislation from Bush administration to make cars get better m.p.g. by 2025)


-The 12 member nations of OPEC are refusing to increase output of oil (cant blame them - when u have countries like us and eu pursuing alternative energy like bio fuels/fossil fuels/ solar etc. )
It affects the cost of all transportation such as personal driving and the transportation industry which in turn affects everything they transport such as food.


It has a favorable effect on the value of your investments in the oil, gas producing companies, dilling companies and well servicing companies.
Oil should be even more expensive, as US dollar plummets, the price of Oil must increase.Commander Chavez said a fair price will be 200 ( now).
It does affect many things, the question now is how to stop the oil price going up further?
  • jane iredale
  • No comments:

    Post a Comment