Here is a proof after I had a password reset...Before that, I was unable to log on.
Onto Chapter 4....
Oil Prices are constantly growing due the the high demands, the US statistics agency explains that the amount of inventory in gasoline and distillates are lower than ever. This is because of the fact that the oil reserves in Iran are not producing as much as full capacity as well as higher demands in recent months. China is also compeating for gas more so than ever because there are more car sales now, as much as 700 new vehicles sold each day in just one city alone. Prices have been as low as $59 US dollars a barrel, now they predict that it will rise to $62, in the near future, competition between the US and China will lead to even devestating prices at the New york Mercantile Exchange. An expert explains that in the next two weeks prices will hit as high as $65 dollars a barrel. This significant rise in price is due to the lack of inventory in the US. China being the second largest oil consumer in the world will not slow down in its consumption, in the long run is it expect that China will even become the worlds largest oil consumer.
Personnal Reflections:
There should be more government involvement in the oil industry, things that the Government can do to keep inventories high and prices low. In my opinion, the Government should limit the amount of gas allowed per vehicle per a set time period. This way we can restrict people who use more gas monthly than others, each vehicle should be filled with the same amount of gas as any others. This would push people into buying efficient cars, as well as reducing the amount of yearly consumption by our country. This is a benificial way to reduce green house gas and keep our inventories high.
I believe this is a good way because the Chinese are using this technique, as the demand in China increases, the government stepped in to limit the amount of gas per vehicle. They stepped in at a time when there was gas shortages in that city.
So by doing that, people would look towards more efficient cars and that would reduce CO2 emmisions.
The fact is, people wont care if the gas prices rose a few dollars more, they just keep on taking it. Because this resource is scarce, they are willing to pay more to get it. Just like you would with diamonds. So even if gas prices are predicted to rise, it won't matter unless the government steps in and get involved in controlling the public consumption.
1 comment:
Jun, what you have written is quite intuirging. Oil prices have been our nemsis for years and years, espeacially as of late. You have touched upon an interesting topic; china and oil. Personally, I am amazed at how fast China is developing economically. However, with 700 cars sold in 1 city alone and China being a nation of at least 1 billion, I wonder what this will do to oil reserves and prices, not to mention the enviroment. The current price of oil is quite amazing. I remember around 4-5 years ago, oil was only 70-84 cents a litre...back then I thought that that was expensive...but now a litre cost around 1.12 cents...truly astonishing.
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