Year Without Oil

The Free essays given on our site were donated by anonymous users and should not be viewed as samples of our custom writing service. You are welcome to use them to inspire yourself for writing your own term paper. If you need a custom term paper related to the subject of Economy or Year Without Oil , you can hire a professional writer here in just a few clicks.
Opec Oil Embargo / 1973, The Year Without Oil OPEC Oil Embargo There are several things that come to mind when presented with the picture and topic, but the one that stands out most is shortage. However, shortage is an ironic word to use for it. It wasnÕt really a shortage in the fact that the world is out of oil, which being a non-renewable resource will be one day, but it was an incredible 130% increase in price by OPEC, Organization of Petroleum Exporting Countries. This forced the petroleum market to head into a tailspin. OPEC, started by the major oil producing countries in the Middle East, was designed to give price control to the oil producers, instead of the oil manufacturers. Formed in 1960, OPEC was only a middleman for 10 years, but in the 1970Õs, they found the right time to drive up the price of gas. One viewpoint can say it was about time that we started paying these countries for what they were up to that point, "giving us," but from the other standpoint, OPEC is no more than a cartel and monopoly. A cartel is two or more parties, the oil producing countries, hurting an innocent third party, oil consumers. OPEC was created to hurt the oil manufacturers who were taking advantage of the oil producers, but unfortunately the one that got hurt from the agreement are the oil selling stations and us, the consumer. Page 2 There are several reasons why it isnÕt the manufacturers didnÕt get affected by any of the price raises. First of all, no matter how high the price of crude oil goes, the world still has to keep buying oil products. In fact, the world is using more petroleum products now than it ever has before, and can only get it from a few manufacturers, which means a monopoly is feeding an oligopoly. Monopolies are when the economy relies on one source for all of a product, also called a trust. Monopolies are banned in the United States by Anti-Trust Laws. Oligopolies are products, that the economy relies on, that are only available from a few sources. In a large market, the oil market, these companies can raise prices for consumers and receive massive increases in their profits. "To really understand the hardships that happened in the 1970Õs, and not being around in that time, we can look at the situation we are experiencing today. Although we are not having the shortages, we are still having the problems with inflated oil prices. However, not all things have resulting from the oil embargo have been bad. Cars are being designed to get better gas mileage, and buildings to be more energy efficient." Page 3 There have been some economic analysts predicting that oil prices were going to rise like they did again this year, due to the low price of oil last year. Unleaded gasoline prices were down to around a dollar per gallon, an

Our inspirational collection of essays and research papers is available for free to our registered users

Related Essays on Economy

Methods Of Stock Selection

A lot of attention has been paid to different methods of stock selection. Lately momentum investing has been all the rage, and many have been suggesting that the old methods are no longer...

Henry Ford 5

Henry Ford I have come here today to inform your of Henry Ford's early years, breakthrough with the Model T , and of his stubbornness attitude. Henry Ford made the automobile industry what it is t...

Henry Ford

FORD, Henry (1863-1947). In 1896 a horseless carriage chugged along the streets of Detroit, with crowds gathering whenever it appeared. Terrified horses ran at its approach. The police tried to curb...

Henry Ford's Bus. Ethics

Henry Ford s Personal Business Ethics No one had the remotest notion of the future of the internal combustion engine, while we were just on the edge of he great electrical development (Ford 1926, ...

Henry Ford

HENRY FORD Henry Ford was known for mass producing cars and for the first time the average family had the chance to own one. Henry was born to the name Henry William Ford. His parents William ...

Henry Ford

Henry Ford was born on July 30, 1863 to William and Mary Ford. He was the oldest of six children. He grew up on farm in Dearborn, Michigan. He lived a typical childhood of spending his days...