Gas Prices In The United States

Marketing is the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners, and society

at large (ama.org). Marketing has to do with how much money a certain company makes and

how they make the money they make. This all has to do with the quality of a product, what they

do that other businesses don’t to make their product more fit to sale, what customers want in the

product, and many other aspects. Of course, the economy plays a huge role in marketing.

Gas prices in the United States of America have always been a problem. They tend to

increase and decrease over time. No one ever seems truly satisfied with the price of gas. It’s

The retail price of gas is determined by four different things. Taxes, the cost of

crude oil, the refining costs and profits, the distributing and marketing costs and profits, as well

as the taxes all play a major part in the price of gas.

The cost of gas has a lot to do with the cost of crude oil. Crude oil is unrefined petroleum

that is used to make a lot of different products. Some of these products include jet fuel, kerosene,

heating oil and of course, gasoline. The top five producing countries of crude oil are Russia,

United States, Iran, China, and Saudi Arabia. The cost of crude oil is determined by the cost that

varies over time. Sometimes it increases, while other times it decreases. Depending on what

country a region of the country a person lives, the cost of crude oil can have a major impact on

how much it will cost. Lastly, the cost of crude oil is determined by demand and supply. Demand

is how much of the product is wanted by the buyers and supply is how much the market can

provide the product the buyers. Increases in U.S. oil production in the past several years have

helped to reduce upward pressure on oil and gasoline prices (eia.gov).

The cost of the retail price of gasoline is also determined by taxes. The

In this case, the number one natural gas producer is Exxon Mobil. They have operations in

every single company except Antarctica. They aren’t really competing with anyone because they

produce so much more gas than every other company. Therefore, it could be considered a

monopoly because other companies are trying to compete with them while Exxon Mobil

competes with no one. A monopoly is when one company owns close to or all of the market for

the product or service that they provide. With no competition, it is not unexpected that Exxon

Mobil could possibly have higher gas prices than the rest of the gas companies. Chesapeake

Energy has operations in fifteen different companies and is second on the list for the top ten

largest companies. While Chesapeake made 3.7 billion dollars, Exxon Mobil made

approximately 370 billion dollars in revenue. There is a big difference, clearing showing that

Exxon Mobil has no competition. The third largest gas company is Anadarko and they are an

independent gas and oil company. They work with many different countries, such as New

Zealand, Africa, Asia, and South America. The fourth largest is Devon Energy whose main