Context Statement

Gasoline could manage to exceed $100 a barrel which would put a gallon of gas at about $4. This has more of an affect than most individuals would think about because with the rising costs of energy the price for a lot of other things will increase as well. The businesses that produce goods and products will have to increase their price to the consumer in order to keep the same amount of profit. If gasoline rises jsut $1 a gallon it will cost an average of about $750 a year for most individuals. this has more of a psychological effect on individuals when they see $4 a gallon prices. The main issue at hand is why are gas prices continuing to rise? Why are some of the larger corporations given tax cuts? Why have these same oil corporations been reporting all time highs in profits when most Americans are struggling to pay for gas? Should these larger oil corporations be given tax cuts while they are reporting record highs in profit while most Americans can barely get by?

General Inquiry

Gas prices semm to continue to increase with no sign of ever slowing down. The cost of crude oil makes up about 71% of the cost of what we pay at the pump according to US Energy Information (EIA). Taxes, distribution, refining costs, and marketing all account for the remaining 29%. Crude oil is so expensive because for exmaple if the U.S were to buy from an overseas country then they must first transfer their money into the currency of that country that they are buying the crude oil from. So the global economy plays an important role.

Why I chose this topic

I chose to research gas prices because it is something that many people can easily relate to. Many individuals use gasoline powered vehicles on a daily basis. Whether it is to drive to work or just going to get groceries for the week. Gas prices have always had a big impact on American society with shortages and huge price hikes. The price of gas affects my life dramatically because I have to drive to school about 25 minutes each way at least 3 times a week. Also, the prices of a gallon of gasoline has changed very much over the years and I would like to know the reasoning behind the price changes whether it is increasing or decreasing.

Personal Bio

My name is David Hefty. I am nineteen years old and I live in Valparaiso, Indiana. I attend Purdue Univeristy North Central. I am in my first year, second semester of schooling. My major right now is business. I would like to do something in the business field. Management would be ideal and something that has interested me. I am orignally from Portage, Indiana and moved to Valparaiso when I was in middle school. I currently work at a local pet store, have been employed there for about 4 years now. I graduated from Valparaiso High School last year in 2010. I don't really play sports anymore, growing up I played basketball a lot. My truck has taken most of my time and interest. I would like to find out why gas prices fluxuate so much and are so high.