True Cost Pricing of Oil

True Cost Pricing of Oil - than $7 trillion present value...

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A lot goes in to True Cost Pricing of Oil or anything for that matter. There are so many aspects to analyze to get the "True Cost". For example the federal government subsidizes the oil industry with numerous tax breaks and government protection programs worth billions of dollars annually. These benefits are designed to ensure that domestic oil companies can compete with international producers and that gasoline remains cheap for American consumers. Our dependency on oil from countries that are either politically unstable or at odds with the U.S. subjects the American economy to occasional supply disruptions, price hikes, and loss of wealth, which, according to a study commissioned by the U.S. Department of Energy, have cost us more
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Unformatted text preview: than $7 trillion present value dollars over the last 30 years. According to the National Defense Council Foundation, the economic penalties of America's oil dependence total $297.2 to $304.9 billion annually. If reflected at the gasoline pump, these hidden costs would raise the price of a gallon of gasoline to over $5.28. A fill-up would be over $105. There is too many other factor that could be added to this number to really paint a good picture of the true cost pricing of oil. America is too dependent on this fossil fuel and a suitable substitute needs to be found soon....
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This note was uploaded on 08/30/2011 for the course BUSINESS 101 taught by Professor Wase during the Spring '11 term at Grantham.

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