Gas Prices and the Law of Supply and Demand Essay

Gas Prices and the Law of Supply and Demand - Essay Example The fluctuation of oil supply is largely credited to the increasing demands of an increasing world population (Campoy and Russel, 2009). Furthermore, our oil mineral deposits are slowly being depleted; oil minerals are not something which can be manufactured or replaced once used. The next best thing for oil companies and prospectors to do would be to look for new sources of oil. However, this is only a temporary remedy to the oil shortage issue. If alternative sources of energy and fuel would not be found, the prices for oil would continue to rise and the supply for oil would continue to decrease. The price of gas as ruled by the law of supply and demand must be controlled and managed. The consumers have recognized the fact that they would not be able to afford the rising oil prices if they do not conserve their fuel consumption (Campoy and Russel, 2009). In this regard, consumers opted to cut back on their driving and save their fuel consumption for essential use only. As a result, gasoline was able to regain its supply gap and consequently push up the depressed oil prices (Campoy and Russel, 2009). Since the price of oil is very much dependent on the law of supply and demand, there is an element of managerial strategy which will always hover over the determination of oil prices. Such strategy may sometimes be attributed to the practice of hoarding or controlling the amount of oil released to the market. To some degree, this practice has been speculated by various analysts and scholars as the cause of oil price increase with oil companies seeking to gain the most profit from oil (Fessler, 2009). This speculation has not... This essay discusses the field of management in oil product companies. The researcher states that today there are different events which the manager needs to comprehensively understand the market in order to ensure that the company or the organization he is managing would not collapse or fail. These events or processes often dictate the direction of the organization and were discussed in the essay. It id mentioned, that on a larger scale, these processes are affected by, and they also have a great impact on other organizations and even global managerial dynamics. In the article of Ana Campoy and Russel Gold, entitled ‘Gas Demand Edges Higher, Lifting Crude,’ which the researcher analyzed in the essay, the relationship between gas prices and the law of supply and demand are established and discussed in details. This article plays a major role into the authors’ analysis and discussion that was presented in this essay. This essay discusses the different elements of t his article in relation to the managerial principles discussed during the managerial classes attended by the researcher. In conclusion, the researcher gives his opinion on managing ang gives several recommendations as for what managers can do to enhace the success of oil corporations and companies today. It is stated that, in applying strong managerial skills, managing oil prices in accordance with the law of supply and demand, has to be in line with ethical practices, as well as the actual state of our oil supply and demand.