Sunday, March 27, 2011

Crisis in Libya

The current conflict between Libyan revolutionaries and Libyan leader Moammar Gadhafi’s troops has caused a national rise in the price of gasoline.  Libya has typically been the producer of a “light, high-gravity crude oil” that is used by refineries all over the globe.  While Libya is in a current state of internal chaos, the crude oil it usually produces is not being distributed, and refineries are looking for substitutes with similar qualities and chemicals.  As usual, an increase in demand causes an increase in price.  Companies who produce these crude oil substitutes are raising their prices to make as large of a profit as possible while their product is greatly needed.  As the price of gasoline components rises, so does the price of each gallon at the pump for most Americans.  Gasoline has been a product that, according to Ms. Lundberg, “has been growing at a rate of 1%”.  Since there are ways to avoid excessive use of gasoline, the rising price can be expected to force citizens to find alternatives.  Carpooling, walking, and riding the bus are three simple alternatives to avoid the use of expensive gasoline.  While our economy is still attempting to recover from it’s current depressive state, this gasoline mishap could certainly prolong our suffering.  As people will most certainly look for alternatives, the demand for gasoline will drop, furthering our economic problems. 
Written by: Arin McGovern

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