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Whether it is the Libyan¶s fighting that is rised the price of gas, or the devastation of the climate.

Whatever it is the price of gas, and oil has been a very hot topic in the last two years or more.

The President is getting hit with pressure to issue a permit, while foreign oil companies profit off

of Americans SUV¶s. I myself drive a 2004 Eddie Bauer edition Ford Expedition which takes

almost 70.00 to fill up. Will the gas companies stop raising their prices,

duringdifferentseasons?The market is tough in the oil industry, and the question is will Marathon

lose its profits, or continue prospering.

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President Obama decided on a six month deep water drilling moratorium. With the US

government prohibiting deep water drilling the oil companies would defiantly still be in a

competitive market. The pipelines are the most economical way to bring oil, refined oil, and

natural gas over land. The biggest element to speed up the production process would be

pipeline transport. Railroad, is another way but they have to lower the cost per unit and have

higher capacity. Pipelines are sometime built under the sea, and that makes the demand and

process economically and technically demanding, therefore the majority of oil at sea is

transported by tanker ships. With all that goes into deep water drilling, like the oil pipelines,

the market will be in demand, because many US companies, can¶tcreate the same type of

product. Oil pipelines are made from steel or plastic tubes with inner diameter typically from

4 to 48 inches (100 to 1,200 mm). Most pipelines are buried at a typical depth of about 3 to 6

feet (0.91 to 1.8 m). The oil is kept in motion by pump stations along the pipeline, and

usually flows at speed of about 1 to 6 meters per second (3.3 to 20

  

  
    

ft/s).(http://www.score.org/business_toolbox.html) Pipelinesused to transport different

products are called multi-product pipelines and they are in used in the same pipeline. Multi

product pipeline have no separation between the different products. The press is really

pressuring the Obama administration to report that they had put out a drilling permit since the

Deepwater Horizon explosion in April 2010. The domestic deep water drilling is going to

always be on top, no matter what the president proposes. The oil companies can reduce the

time of transporting the oil by using the same pipelines.

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The profits of Marathon have many strategies, they have ways to keep the cost, and price down

without losing profits. Marathon saves a lot of money by ordering materials in bulk. Marathon

saves a lot of money by avoiding buying material from expensive companies or vendors. They

also have to make sure not to over buy and having money put into materials to fast and cause

cash flow problems.

Another way to Marathon can make money is by buying in bulk and take advantage of the

discounts. That will alleviate a lot of extra stress, and extra material. Many specialists call it co-

op. They can also earn profits by collaborating with other oil companies, and get breaks by

getting the same products. Marathon can get a better price than what they would get if they were

buying alone.(www.msnbc.msn.com/id/37937049/ns/disaster_in_the_gulf/)

Marathon has so many options of things to do to save money; first they can minimize the labor

time by having corporate advice and overlook some areas of improvement.Small changes, like
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time, workspace, can help out in savings in the long run. Its one thing to have a great work

environment, you have to also have great people running the show. Marathon could save a

substantial amount of money by hiring some minimum wage workers. If you need to pay $50 an

hour, you can find someone to do the same job for you for $10 an hour; this can reduce your

costs. (wordpress.com) Doing that can also have some risk, with work not being satisfactory, or

you still having the fees of insurance and taxes. I would recommend hiring a contractor who can

work from Marathon, and with Marathon.

Last but not least, Marathon can minimize some of their expenses. Look at their financialbooks

and accounts and find some cut backs. Start from the head of the company and trim it on down,

also some of the employees who are in corporate can work from home. They should evaluate

everything and see where some excess spending is being done and cut that completely.

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One of the main products provided and refined by crude oil is, Gasoline. Gasoline accounts for

just seventeen percent of the energy consumed in the United States. Gasoline is used for many

things, it fuelsautomobiles, trucks, boats, recreational vehicles, and various farm and other

equipment. While gasoline is produced year-round, extra volumes are made in time for summer

driving season. Gasoline is delivered from oil refineries mainly through pipelines to a massive

distribution chain serving estimated 168,987 retail gasoline stations throughout the United
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States.(www.fueleconomy.gov) The three main grades of gasoline are regular, mid-grade, and

premium, but each grade has a different octane level. The price is of gasoline is varied by the

grade level. The production and delivery of gas to consumers includes a lot ,the cost of crude oil

to refiners, refinery processing costs, marketing and distribution costs, and also the retain station

costs and taxes. The price paid by consumers at the pump reflect these costs as well as the profits

(and sometimes losses) of refiners, marketers, distributors, and retail station owners. Federal,

State, and local taxes area large component of the retail price of gasoline. Taxes (not including

county and local taxes) account for approximately 19 percent of the cost of a gallon of gasoline.

(www.fueleconomy.gov) The gas prices fluctuate so often now days that many have turned to

alternative methods. Many ask the question why? When crude oil prices are low and stable,the

prices still go up and down due to the weather changes and competition between gas stations.

Also, prices of gasoline can change fast due to the crude oil supply disruptions coming from the

world events, or the domestic problems such as refinery or pipeline outages. Crude oil prices

usually are fine seasonally, but most gas stations tend to raise their prices before and during

summer, when people drive more and use their air conditioning.

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The economy has face tremendous up and down through the last five years, but it too will bounce

back to be the supreme nation. Gas prices today are 3.29 on average, will gas station like

Marathon, stopping making a profit off of us, or will Obama¶s passing of the off shore water

drilling permit het the fellow Americans. Nobody really knows not the blogs, not

wordpress.com, or msnbc, all we can do as American is wait and wonder. Crude oil and gasoline
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is a huge money maker over seas, let stop the usage of foreign oil, and maybe we can get out of

this deficit.

+  ' 

http://www.score.org/business_toolbox.html

www.fueleconomy.gov

http://www.score.org/business_toolbox.html

wordpress.com/

www.msnbc.msn.com/id/37937049/ns/disaster_in_the_gulf/

Karlgaard Rich. (2004) Peter Drucker on Leadership. Forbes magazine. Retrieved October

17,2010

http://www.forbes.com/2004/11/19/cz_rk_1119drucker.html

http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2363

http://www.amanet.org/training/podcasts/James-Kouzes-on-rising-to-the-leadership-challenge-

08-27.aspx