Appenddix D-W6 - American consumers are facing much higher...

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American consumers are facing much higher oil and gas prices today than they have ever seen in their lifetime. I. Gasoline and Oil are two of the most important sources of energy in the world. A. Gas and Oil is an extremely important energy source throughout the world. The importance ranges from heating houses to fueling automobiles, the world uses a massive amount of it. 1. Gas and Oil accounts for just about seventeen percent of the energy consumed in the United States. The primary use for gas and oil are to fuel automobiles and trucks, but also fuels boats, recreational vehicles, and many other types of farm equipment. 2. Luckily, gasoline and oil is produced year around, extra volumes are made just in time for the summer at which is the largest driving season of the year. When crude oil prices are stable, retail gasoline prices tend to rise and during the summer in which when people drive more. Good weather and vacations cause United States summer gasoline demand to average about six percent higher than during the rest of the year. B. Gasoline and oil are delivered throughout United States and the world. 1. Gas and oil are delivered from oil refineries through pipelines to a massive distribution chain in which serves 168,987 retail gasoline stations throughout the United States. 2. Some gasoline stations are owned and operated by refiners such as: shell, Exxon, and Citgo, while others are independent businesses that purchase gasoline for resale to the public. The gas stations owned by refiners profit more money than independent businesses. II. The price of gasoline and oil. A. The cost to produce and deliver gasoline to consumers includes the cost of gas and oil to refiners, refinery processing costs, distribution costs, and the retail station costs and taxes. The prices paid by consumers at the pump reflect these
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This note was uploaded on 03/29/2008 for the course ENG. 1009 taught by Professor Knox during the Spring '08 term at Middle Tennessee State University.

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Appenddix D-W6 - American consumers are facing much higher...

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