How Katrina Affected Gas Supply

How Hurricane Katrina effect foul up prices Outrageous accelerator pedal prices is something that tout ensemble American face at the pump in now economy. many another(prenominal) American wonder what is the cause of the high evaluate at the pump. There are many factors involved in the dish up to the question on what causes natural gas prices to add suddenly. In 2005, tote Day Weekend gas prices rose wine dramatically later hurricane Katrina hit the Confederate coast of the joined States. The devastation of hurricane Katrina disgraced many of the linked States crude oil colour refineries, make a shine in lowbred oil supply, which caused a decrease in gasolene supply. The devastating damage to the oil refineries, along the southern coast of the United States, caused by hurricane Katrina, triggered gasoline prices to soar. Hurricane Katrina shut coldcock oil and gas merchandise in the outer Continental shelf in the Gulf of Mexico, the theme for 25% of the U.S. bumpy oil production (FTC, 2005). When crude oil and gasoline production were shut from Hurricanes Katrina, the countrys gasoline supplies were reduced. That put upwards pressure on prices, as supply was change. The upsetting instinctive disaster affected gasoline prices all over the United States.

Worldwide supply, demand, and aspiration for crude oil are the nearly important factors in the national average price of gasoline in the United States (FTC, 2005). With many oil refiners shut down, referable to the damage it under(a) went, the supply of crude oil decreased create prices of crude oil to also increase. If world crude prices rise, thusly U.S. refin ers essential offer and pay high prices fo! r crude they buy. lining higher input costs from crude, refiners awaken much for the gasoline they carry at wholesale. This requires gas stations to pay more than for their gasoline. In turn, gas stations, facing higher input costs, charge consumers more at the pump (FTC, 2005. para19). As a moderate of gas station paying more for their gasoline, this will increase the sum the...If you want to get a full essay, revision it on our website: OrderEssay.net

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