Why do oil and gas prices continue to rise? Free Essay, Term Paper and Book Report
The rise in oil and gas prices, however economically demanding this may be, can be understood when an individual examines the composition of these prices and realizes that, like any other consumer product, the price we pay at the pump is actually a makeup of several different entities all dependant upon various factors, such as the price of crude oil, the geographical area we live in, state and federal tax laws, cost of refining the gasoline into a useable substance, the gas stations we buy our gas from, the demand for gas, and what kind of oil that was used to make the gas and where it came from. When you begin to examine all of these issues the price you are paying at the pump might be a little easier to choke down.
The biggest portion of the gas price we pay at the pump is dependant upon Crude Oil. Gas is made up of about fifty-percent refined crude oil. Crude oil or Petroleum is a naturally occurring liquid found in porous rock formations in the upper strata of some areas of the Earth's crust consisting of multiple strings of hydrocarbons of various lengths. (dictionary.com, 2......
Word Count: 1538
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