Moratorium on Deep-Water Drilling For Retail Gas Prices Coursework

Moratorium on Deep-Water Drilling For Retail Gas Prices - Coursework warningMarathons Product Process The production process in MPC takes place in tierce phases, i.e. subtlety, transporting, and marketing. The refining phase is executed with the assistance of sis-plant refinery ne iirk system. Crude oils gathered from the supply markets of Midwest and respective(a) parts of Southeast ar refined in these plants with the capacity of around 1,142,000 barrels per day (bpd) accumulatively. Notably, two different types of crude oils are refined in these plants, i.e. sweet crude oils (46% approx) and sour crude oils (54% approx) which are collected from national as well as international suppliers. These refineries are located in half-dozen different parts of the continent, i.e. Louisiana, Kentucky, Illinois, Michigan, Ohio and Texas. The refineries are not only different in terms of their location provided are also diverse in terms of sizes and their strengths (as cited in Marathon Petroleum Corporation, 2011). ... In this context, the biggest limit of the company shall be recognized as the integrated sharement system implemented in its refining phase of production. This indicates the refining phase of production process to be open for greatest number of talent improvements. It is due to the fact that all the six plants tend to be different from each other to a large extent in terms of operations, size and strengths. Thus, it is likely to become quite challenging to manage the vivid operations through the implementation of an integrated plan. 2.0. Relationship between the Retail Price of gasolene and World Demand for Crude Oil Experts have stated that the retail determine of flatulence and the price for crude oil are asymmetrically related to each other. To be illustrated, the retail price of petrol is examined to heighten wholely with the rise in the price of crude oil. However, the retail price of gasoline tends to perch leisurely when the price fo r crude oil substantially minimizes. This presents an asymmetric relationship between the two factors (Balke, Brown, & Yucel, 1998). On the similar context, the price elasticity of demand for crude oil is termed to be least, i.e. with a significant rise in the crude oil prices it is likely that the demand for the product will diminish but not extensively (Cooper, 2003). Therefore, it can be stated that the global demand for the crude oil and retail prices of gasoline are asymmetrically related. This indicates that fall in demand due to the price increase of crude oil will have an inverse impact on the retail price of gasoline resulting in substantial price hike of the commodity.