Sara Krausz Create original works as a means of personal or group expression. With Assistance · 3T1b1. Students will create a digital work (e.g., movie,

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Slide 2 Sara Krausz Slide 3 Create original works as a means of personal or group expression. With Assistance 3T1b1. Students will create a digital work (e.g., movie, podcast/vodcast, digital storytelling, web publishing, etc.), individually or collaboratively about a specific topic using primary resources and secondary resources. 3T1b2. Students will use online collaborative tools (e.g., online discussion forumspodcastvodcastdigital storytelling, web publishing primary resourcessecondary resourcesonline collaborative toolsonline discussion forums Slide 4 Crude Oil Crude oil is pumped from the ground in the Middle East (e.g., Saudi Arabian Arab Light), West Africa (e.g., Nigerian Bonny Light), the Americas, and Asia (Russia), pumped into ships called tankers, and sailed across the ocean to oil refineries on the Delaware River. Slide 5 Slide 6 The recent recession and the slow economic recovery have dampened demand for oil products. But the big story is that the U.S. has really expanded production over the past several years since production of oil from shale in North Dakota and other states. "Five years ago, we were importing 10 million barrels a day, but at $50 a barrel,"Now we're at 8.4 million barrels, but at prices over $100 a barrel." Slide 7 Slide 8 Oil does not come out of the ground in the same form everywhere. It is graded by its viscosity (light to heavy) and by the amount of impurities it contains (sweet to sour). The price for oil that is widely quoted is for light/sweet crude. This type of oil is in high demand because it contains fewer impurities and takes less time for refineries to process into gasoline. As oil gets thicker, or "heavier," it contains more impurities and requires more processing to refine into gasoline. Slide 9 Light/sweet crude has been widely available and sought after in the past, but is becoming harder to obtain. As the supply of this preferred oil becomes more constrained, the price climbs. On the other hand, heavy/sour crude is widely available through out the world. The price of heavy/sour crude is lower, sometimes substantially lower, than light/sweet crude. Refining heavy/sour crude requires a higher capital investment to process lower-quality oil. This investment is possible since refiners can purchase poorer-quality crude at a lower price so they can get their return on investment. Slide 10 Demand Change in the demand for gasoline is primarily set by the number of people who are using the fuel for transportation. The growth in the number of people driving cars and trucks, particularly in parts of the developing world, has expanded dramatically in the last few years. China and India, each with a population in excess of 1 billion, are experiencing an expanding middle class that will likely use more gasoline over time. Slide 11 Inflation Inflation is the general rate at which prices of goods/services are rising (and, conversely, the rate at which purchasing power is falling). In the U.S., an item that cost $1 in 1950 would cost about $9.30 in 2010. In 1950, gas cost about 30 cents per gallon. Adjusting for inflation, a gallon of gas should cost about $2.79, assuming taxes, supply and demand stayed the same. The level of inflation varies by country, which can influence the price of fuel Slide 12 Taxes The tax on a gallon of gas in 1950 was approximately 1.5% of the price. In 2011, the federal, state and local tax on a gallon of gasoline was approximately 20% of the total price. This means that taxes added about 48 cents to the price increase in a gallon of gas. Federal tax made up 18.4 cents, state tax made up 20.6 cents, and local and other taxes made up 9 cents per gallon as of January of 2011