Thursday, October 05, 2006

Go on a Road trip before it's too late!

Road trips are so exciting when gas prices are at a low price of $ 1.98, but it doesn’t seem like it’s going to stay this way for too long. On an article published on on October 3rd 2006, the article mentions the struggle member countries of OPEC are facing concerning oil prices. It it is mentioned in the homepage of OPEC (Organization of the Petroleum Exporting Countries) the organizations mission is to “coordinate and unify the petroleum policies of Member Countries & ensure the stabilization of oil prices…". Two of the member countries, Venezuela and Nigeria are facing severe surplus in within the country for oil. (Article) The problem is severe to the point where it is effecting commodities such as gold and copper. Since both Venezuela and Nigeria are severely dependent on the income from petroleum exports, gold, and copper; they filed a request to OPEC for an output cut in hope to increase oil prices to better its economy. This effects consumers of oil in general, including us in the United States (it is mentioned in the article that United States is the biggest energy burner and demander in the world). The oil analysts are making a prediction OPEC will eventually cut exports of oil barrels by 1 million barrels. This will surely effect the price of gas and oil in the United States.
As a consumer of oil in the United States, the cheaper price the better. Though if we shine a positive light into the situation, some businesses within the United States may profit from higher gas prices. For example, placing the situation locally, Giant Eagle usually seems to benefit from higher gas prices. Giant Eagle has its own gas station close by, and it provides discounts for the customers. If customers buy $50 worth of product from Giant Eagle, the consumers get certain points which can be used for gas.
Do you think it is safe to say that some companies and businesses are going to actually profit from higher gas prices? Even when low oil prices are always appreciated, do you think it actually hurts an economy when the prices are too low?

1 comment:

Emily Shuba said...

I believe that everyone ejoys low gas prices. While both the consumer and the business must share the responsibility of gas taxes, the business will strive to make their gas prices the lowest in town. This alone will attract consumers. Giant Eagle's Get-Go price reductions offered in turn for Giant Eagle purchases are just one case in where the business was able to make some good of high gas prices.