In this weeks blog, I wanted to write about the effect that hurricanes can have on the gas and oil industry. Not just that the prices will go up because production is limited, but the price gouging aspect of it. To me, its very unethical for oil companies to raise the price of oil before a storm even hits. They paid a much smaller rate on that oil in their reserve than what their next shipment of oil would have been. As Hurricane Harvey hit the state of Texas last week, I noticed gas prices had sky-rocketed days before the shortage of gas arrived, even in states like Alabama where I live. I think we all understand that when oil production is ceased, the price will go up, but I think we all expect that price raise should occur after the oil they have now is used up. In Texas, some spots were over 5.00 per gallon. In Alabama, I have seen such places that have raised gas prices to 2.65 without having a new shipment of oil. Gas was prices under 1.86 the day before Harvey made landfall where I live. I hope that federal agencies take notice of this practice. Not all businesses use this as a way to make extra money, but those that do, should be ashamed of themselves.
It most certainly can. One of the biggest things that I have learned through research and other classes at Wallace State, is that a business can fall flat on its face if its in the wrong area. I also have some first hand experience on this topic as well. My family owned an automotive shop in a well populated blue collar area. The business thrived! Many times, business had to be turned away to another day because of being backlogged. My family decided to move the business over different reasons, mainly the rent had skyrocketed and the owner of the building had become very sick and unwilling to co-operate with some of our demands. Once we were moved, business picked up eventually but the workload was never the same. I am sure this has been the case with thousands of businesses that have been in the wrong location as a start up, or moved their business to a cheaper district. Some may argue that if the business is good enough, it will survive anyway. I would much rather pay a higher rent t...
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