Gm 545

GM 545

Project Part 1

Keller University

1. Exercise 1: Everyone’s Gasoline Problem

One of the reasons why the prices of gasoline at the pump are fluctuating, because the supply and demand depend on seasons, holiday or many other things may affect many countries oil export such as war, new government officials. For example during Middle East crisis in Libya had triggered a significant and sustained instability in a region that’s home to two-thirds of the world’s known crude oil reserves. Besides that, it impacted the unsettling reality it represents has already sent tremors through the international energy sector. Oil prices are on the march since that incident. However, average retail gasoline prices in Virginia Beach during the first quarter of the month 2012 have fallen 7.5 cents per gallon in the past week, averaging $3.34 a gallon as of Sunday. Va. Beach Gas Prices Website says prices were 84.1 cents per gallon higher than the same day one year ago and are 12.2 cents per gallon lower than a month ago. In my opinion, since many countries around the world have improved more ways to help depending on using more oil consumption by using mass transportation such as light rail was introduced to Hampton Road, Virginia last year. But, if Middle East crisis continues to escalate, we can predict how the global energy sector will be affected. In fact, if the crisis reaches the severity that I'm expecting, it will send the world's energy sector through three very predictable phases. As a result, our local gas pumps price have affected due to supply and demand as a decrease in supply barrels of oil will shift the supply curve to the left, since fewer units of oil barrels are offered to the markets. According to zfacts.com, we are witnessing the second largest drive toward energy independence in our history. The first was in response to the 1973-1985 OPEC crises, and the second started in 2006 soon after oil prices broke $60/bbl triple their price...