Structure of Us Gasoline Industry

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December 11, 2011
Structure of the US Gasoline Industry: wherefore We Pay What at the Pump.
In December of 2010 the average bell for gas in the United States was $2.96 per gallon. The U.S Department of Energy breaks this expenditure down into percentages of cost to produce that gallon of gas. The determine of bumpy petroleum made up 68 percent of the price ($2.01), taxes made 14 percent ($.41), followed by the cost of ameliorate at 10 percent ($.30), along with distribution, marketing and network at 8 percent ($.24). I found this teaching surprising.
Oil is a complimentary good to gasoline so the hold for each is directly related. The two main types of petroleum are light/sweet rock oil and heavy/ glowering oil. The most call fored by oil companies is the light/sweet oil because it contains fewer impurities. Oil with fewer impurities is refined into gasoline sudden and cheaper. The substitute for light/sweet oil is the heavy/ rancid oil. This oil is widely available around the world at a lower price. This oil will take all-night and cost more in the refining process because of the impurities in it. Refining of heavy/ sham oil demands a high capital investment. The lower purchase price of heavy/sour oil allows for a return on the investment.



With oil universe a natural resource at such a high demand, price is going to continue to rise as we see the availability of the resource decline.
Nations with larger economies have the highest demand for oil. The United States clears more oil than any other nation. We consume 25 percent of the estimated 80 million
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barrels of oil produced worldwide every day. The majority of the oil we use is import from Canada and Saudi Arabia. The European Union also uses a noteworthy amount of the worlds reserve as well. The up and coming Chinese economy is forcing the nations demand for oil to increase at 7.5 percent a year. As a result of an increase in new car sales, China has plans to construct 42,000 miles of new interprovincial highways by...If you want to get a full essay, order it on our website: Ordercustompaper.com



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