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Oil price increases of 2004 and 2005

Oil price in 2003-2005 Average US retail price of regular unleaded gasoline Oil prices from 1860-1999 in 1999 dollars. Source: [1]

The price of standard crude oil on NYMEX was under $25/barrel in September 2003. By August 11, 2005, the price had been above $60/barrel for over a week and a half. A record price of $70.85 per barrel was reached on August 29, 2005.[2] While oil prices are considerably higher than a year ago, they are still roughly 25$ from exceeding the inflation-adjusted "peak of the 1980 shock, when prices were over $90 a barrel in today’s prices" [3].

In the United States gasoline prices reached an all time high during the first week of September 2005 in the aftermath of Hurricane Katrina. The average retail price was nearly $3.04 per gallon. The previous high was $2.38 per gallon in March 1981, which would be $3.03 per gallon after adjusted for inflation.[4][5]

Demand

High demand is led by the U.S. market, the source of an increasing percentage of the world's demand for petroleum. The U.S. economy currently accounts for one-quarter of all demand. New demand is also coming from emerging industry in third world nations, including India and especially China which is developing a western-style car culture and whose manufacturing bases have grown very rapidly in recent years.

Sources of the world-consumption-increase in 2004 compared to 2003 (total increase of 3.4%), according to U.S. Department of Energy Energy Information Administration estimates: [6]

  • China: 38.9%
  • US: 19.4%
  • Asia outside Japan and China: 13.8%
  • Canada: 4%
  • UK: 3.5%
  • combined other non-OECD: 21%

Note: the total percentage exceeds 100 because the overall demand from all other countries decreased during the same period..

Supply


There are a number of reasons why oil traders feel that oil supplies might be reduced. One of the most important is growing turbulence in the Middle East, the world's largest oil producing region. The war in Iraq, Iran's nuclear program, and questions about Saudi Arabia's internal stability all could in the future lead to a dramatic fall in the supply of oil. Outside the Middle East other oil producers have worried investors such as the strikes political problems in Venezuela and potential instability in West Africa.

In late August, 2005, Hurricane Katrina crippled the supply-flow from off-shore rigs in the Gulf Coast, the largest source of oil for the domestic U.S. market. Short-term shutdowns because of power outages knocked out two major on-shore pipelines, and at least 10% of the nation's refining capacity was not operating in the wake of the storm. Gas prices in the region, normally 70 cents below the national average, were at $3.12 on August 30.[7]

World supply (specification) came in at 83 million barrels a day during 2004 in department of energy EIA calculations ([8]). This rate of increase is faster than that of any other date in the past. Despite this there is increasing discussion of peak oil and the possibility that the future may see a reduced supply of oil. Even if oil supplies themselves are not reduced, some experts feel the easily accessible sources of light sweet crude are almost exhausted and in the future the world will depend on more expensive sources of oil.

The short term price of oil is partially controlled by the OPEC cartel and the oligopoly of major oil companies. One other important cause is the United States dollar's slump against the Euro. Since oil is traded in dollars, the price must increase for OPEC to maintain buying power in Europe.

Causes

Some people and news agencies argue that labor strikes, hurricane threats to oil platforms, fires and terrorist threats at refineries, and other general problems are responsible for the higher gas prices. Critics argue that these problems periodically push price higher, but that they are not fundamental or long term enough to cause the large jump in gas price. A more fundamental problem that some believe is causing the price to rise is the probability of peak oil already or soon to be reached. Not only is there a limited amount of fossil fuels which have been burnt as fuel, but however much remains will be used faster by a growing industrialized world population and what remains will be more dificult to get since the easiest wells have been tapped and the remaining sources will be fought over in resource wars.

Others believe that the price of oil is almost entirely speculative, and that the increase in price is due to oil speculation extending into the long term. These people argue that speculators foresee increasing demand, decreasing supply, or both, leading to a long term increase in the price of oil. If these speculators are wrong, current prices may actually be a price bubble, and the price could thus collapse. A July 14, 2005 Morgan Stanley report[9] suggests that opinions of the oil market could burst just like a bubble if indications of declining Asian demand continue.

Still others suggest that the main issue is a lack of energy efficiency in industry. These analysts believe the problem would be solved by increasing the efficiency of factories, homes and transportation and easing the demand crunch by using less energy and more renewable energy.

Spring & Summer 2005 increase

Overnight gas price hike shown at a Chicago area bp station (background). The Shell station (foreground) has not yet posted the 12 cent price hike.

After retreating for several months during the winter of 2004/2005, prices rose to new highs in March 2005. The price of light, sweet crude oil on NYMEX has been above $50/barrel since March 5, 2005. On March 16, 2005, the price surpassed the October 2004 high of $55.17 to close at $56.46. In April 2005 the price began to fall, reaching $53.32 on April 9. It then reversed course and headed to an all time high of $58.28, driven mainly by lingering concerns of a prolonged weak dollar. In June 2005 crude oil prices surged to record highs eventually breaking the psychological barrier of $60.

Saudi Arabian King Fahd's death on August 1, 2005, meant a new regime that may be less amicable to U.S. influence. During mid-August, with a string of refinery snags (fires/other deterrents to oil refining), shrinking gasoline inventories, and a growing thirst for oil by American consumers, New York Mercantile Exchange traded crude oil futures surged past the $66 mark and briefly touched $67/barrel. Over the course of three weeks leading up to August 10, crude oil prices had risen by 13%.

While the street price of gasoline usually corresponds to the price of crude oil, refinery capacity can become the governing factor, particularly during periods of high demand. In addition, there are different grades of oil and each refinery is typically configured to process a narrow range of grades. As a result, shortage of a particular grade of oil can keep street prices high, even when overall supply exceeds demand.

Winter 2006 increase

On January 17, sweet crude oil for February delivery rose by $2.38 (3.7%) to $66.30 a barrel. This was the highest increase since early October 2005. Observers believe that violence in Nigeria, and Iran's friction with the West are responsible for this price increase. Continued concerns about Iran raised the price to $68.38 on January 31.[10]

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Hurricane Katrina

Gas price hike shown at a Shell station.

Hurricane Katrina had a major impact on oil and gas prices, especially within the United States. The Gulf Coast is home to a major portion of America's refining capacity. The port of Louisiana is one of its most important inlet for oil imports, and the gulf itself is a major oil producer. Port Fourchon has also suffered long term damage. Louisiana Offshore Oil Port has not. [11]

Gas prices soared after the closing down of the major pipelines connecting the gas of the Louisiana region to the entire East Coast. In Stockbridge, Georgia, regular gas prices came to $5.87 at a BP station. Shortages were feared or experienced in several states including Tennessee [12], Alabama [13], and South Carolina. [14] Many of these were blamed on panic buying. Airports began to report shortages in aviation fuel on 2 September.[15] A shortage could lead to a decrease in food production.[16] Higher prices for heating oil and natural gas were expected as the winter heating season set in.[17]

On 5:10 p.m. EDT, on 31 August, President Bush announced the Energy Department was approving loans from the Strategic Petroleum Reserve and that EPA announced nationwide waver on fuel blends. Bush stated, "This storm has disrupted the ability to make gasoline and deliver gasoline," and "This is going to be a difficult road."[18] Many people have observed however that stores of crude oil do little to address inadequate refinery and distribution capacity.

In order to stabilize world energy supplies, the International Energy Agency offered to sell two million barrels of crude oil and other refined products from national supplies. These supplies would begin entering the US markets within two weeks of 2 September. [19] [20] The press release from the IEA states, "... the implications for the oil market are global."[21]

Effects

There is controversy regarding the potential effects of oil-price shocks. Some see these increases in the price of oil leading to a recession comparable to those that followed the 1973 and 1979 energy crises or a potentially worse situation such as a global oil crash. Most economists see this as unlikely, partly because all developed countries have high fuel taxes that decrease as oil prices increase and can be eliminated in the event of a dramatic price spike. Nevertheless, that loss of revenue would put a strain on government balance sheets. The American Strategic Petroleum Reserve could on its own supply current U.S. demand for about a month in the event of an emergency, unless it is also destroyed in the emergency. This could well be the case if a major storm were to hit the gulf, where the reserve is located. While total consumption has increased [22], the western economies are less reliant on oil than they were twenty-five years ago, due to substantial growths in productivity. In the United States, for instance, each $1000 dollars in GDP required 2.4 barrels of oil in 1973 when adjusted for inflation this number had fallen to 1.15 by 2001. But oil's historically high ratio of Energy Returned on Energy Invested continues a significant decline. Despite the rapid increase in the price of oil, neither the stock markets nor the growth of the global economy have been noticeably affected. Inflation has increased. In the United States, the Consumer Price Index rose by 0.6% compared to 0.2% for September. This was driven by a 4.2% increase in energy costs. As a result during this period the Federal Reserve has rapidly been increasing interest rates to curb inflation.

Economists say that the substitution effect will spur demand for alternate energy sources, such as coal or liquified natural gas. For example, China and India are currently heavily investing in natural gas facilities. Nigeria is working on burning natural gas to produce electricity instead of simply flaring the gas. Outside the US, more than 50% of oil is consumed for stationary, non-transportation purposes such as electricity production where it is relatively easy to substitute natural gas for oil.

The increased price of oil also makes previously impractical sources of oil attractive to businesses. The most prominent example of this are the massive reserves of the Canadian tar sands. They are a far less cost efficient source of oil than crude, but at 60 dollars a barrel, the tar have recently become very attractive to businesses. Recent months have seen billions of dollars invested in the oil sands.

The increased price of oil might also encourage greater fuel efficiency. Recent years have seen a move towards more fuel-thirsty sport utility vehicles in the United States and Canada, and this may be stopped by the high price of gas. The September 2005 sales data for all the vehicles vendor indicated SUV sales dropped while small cars sales increased compared with 2004 sales. There is also an ever increasing market for hybrid vehicles since they are more fuel efficient; since the 1973 energy crisis, the front-wheel drive passenger car has replaced rear-wheel drive as the preferred layout for energy efficient cars. There is an increasing demand of crossover sport utilities which are more fuel efficient - especially for those based on passenger car platforms.

USA Stock markets

Three-year performance of the oil industry... ...and one-month performance.

The increase in oil prices over two years was mirrored by an increase in stock values in the energy sector. The value of the stock in companies such as Apache[23] and Conoco-Phillips [24] rose sharply during this period. These prices increased more rapidly toward the end of August, particularly after Hurricane Katrina. [25]

Wal-Mart shares continued their decrease in value that began with the increase in the oil prices. Over two years, stock in Wal-Mart dropped in value by 25% from $60 per share to under $45 per share. [26] Earlier in August, Wal-Mart announced that higher than expected oil prices cut into the corporation's profits for the 2nd quarter of 2005. Since oil prices after the end of the 2nd quarter continued to rise, 3rd quarter profits from Wal-Mart are expected to be small. Because Wal-Mart's distribution system relies on the customer to drive to a large discount big-box store, increases in the price of fuel might discourage some customers from making the trip as often. Wal-Mart, like all retailers, will also face higher shipping costs to get goods from the factory to the stores. This will likely cause inflationary pressures.

Asia Pacific Region (excludes Australasia)

The Pacific rim had been experiencing this crisis on an ongoing basis prior to Hurricane Katrina.

  • In the Philippines, the oil crisis caused its public to call for immediate government assistance. [27] New sources of energy were sought to deal with the crisis.[28]
  • A senior minister of Singapore expressed concern at the oil crisis in Indonesia.[29]
  • The Indonesian president had instituted subsidies to control the price of gasoline.[30]


Sub-Saharan Africa

High oil prices are hurting many countries in Africa, including Zimbabwe, Eritrea and Tanzania. High oil prices have created an oil supply instability, per barrel price instability or both. In some cases this has led to fuel rationing being enacted.

  • Many countries in Sub-Saharan Africa lack the foreign exchange reserves (ie, Dollars) to purchase enough oil products at the ever increasingly higher prices. These nations must resort to limiting imports or rationing their existing supplies.

Latin America & Caribbean

Venezuela's president, Hugo Chávez, came under increasing scrutiny as he began selling oil at lower-than-market prices to island nations in the Caribbean. [31]

  • At the same time, Cuba has experienced electricity shortages.

Gulf States & Eurasian Arab-Islamic Regions

Iran came under increasing pressure from the European Union in regard to their program to build nuclear power plants.[32]


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Iran came under increasing pressure from the European Union in regard to their program to build nuclear power plants.[32].
. [31].
. Venezuela's president, Hugo Chávez, came under increasing scrutiny as he began selling oil at lower-than-market prices to island nations in the Caribbean. While Shadow has his own game, Shadow also has his own theme songs even in Sonic Titles:. In some cases this has led to fuel rationing being enacted. But now, thanks to Sega's most recent Sonic game, Shadow the Hedgehog, it has now been confirmed that Shadow is indeed the same Shadow that was in Sonic Adventure 2 who was saved after Chaos Controlling the ARK and being used as a template for Doctor Eggman explained in Shadow the Hedgehog, as well as the ultimate life form that Professor Gerald Robotnik (Eggman's grandfather) created 50 years ago.

High oil prices have created an oil supply instability, per barrel price instability or both. It was not known whether he was the same Shadow from Sonic Adventure 2 or a robotic copy made by Eggman. High oil prices are hurting many countries in Africa, including Zimbabwe, Eritrea and Tanzania. Until recently, Shadow's fan base was split over what the new Shadow was, as the new Shadow suffered from amnesia.
. When Shadow re-emerged in Sonic Heroes, his fans were split into two groups; many fans wanted to see Shadow return, while others felt bringing him back cheapened his death in the previous game. The Pacific rim had been experiencing this crisis on an ongoing basis prior to Hurricane Katrina. When first introduced, many fans were put off by Shadow, seeing him as nothing more than an "evil twin" cliché, but much of that subsided when the game was released and Shadow developed into a full-blown character of his own.

This will likely cause inflationary pressures. Shadow returns in Sonic #157. Wal-Mart, like all retailers, will also face higher shipping costs to get goods from the factory to the stores. Most particularly, he seems to have some sort of feelings towards the Overlander girl Hope, who reminds Shadow of Maria. Because Wal-Mart's distribution system relies on the customer to drive to a large discount big-box store, increases in the price of fuel might discourage some customers from making the trip as often. In his journey, he has run into various characters, including the E-102 Gamma-lookalike Isaac, the Guardian, Locke, and several others. Since oil prices after the end of the 2nd quarter continued to rise, 3rd quarter profits from Wal-Mart are expected to be small. Eggman, but will turn on them if they hinder his search for the truth.

[26] Earlier in August, Wal-Mart announced that higher than expected oil prices cut into the corporation's profits for the 2nd quarter of 2005. He has sided with the Mobians to fight greater evils, like the Xorda and Dr. Over two years, stock in Wal-Mart dropped in value by 25% from $60 per share to under $45 per share. Shadow is an individual, and usually works alone to achieve his own goals, which is currently to discover the truth of his mysterious history; as such, it is hard to peg him as good or evil. Wal-Mart shares continued their decrease in value that began with the increase in the oil prices. There was an error in this issue, however, it is said by Shadow that Sonic showed him the light to help save Mobius/Earth yet it was really Amy Rose. [25]. Shadow proves useless against the Xorda and crashes into Mobius, surviving the fall, and is found by Sonic.

These prices increased more rapidly toward the end of August, particularly after Hurricane Katrina. The comic then skips over the events of the game, and Shadow reappears in Sonic #124 where he is rescued by an alien race, the Bem; only for them to use him as a distraction against another alien race, the Xorda, while they make a run for it. The value of the stock in companies such as Apache[23] and Conoco-Phillips [24] rose sharply during this period. He first appears in Sonic #98, which is an introduction to the game Sonic Adventure 2, with a few changes to accommodate the Archie version of Mobius/Earth. The increase in oil prices over two years was mirrored by an increase in stock values in the energy sector. Shadow has appeared in Archie's Sonic comics, but has only made a handful of appearances. There is an increasing demand of crossover sport utilities which are more fuel efficient - especially for those based on passenger car platforms. In the last episode of the 3rd season Shadow is in his Super form and, in his mind, there is an image of Molly, which used to be Maria in the episode "Molly's Dream", and then he takes off into space, leaving a slightly confused Sonic and company behind.

There is also an ever increasing market for hybrid vehicles since they are more fuel efficient; since the 1973 energy crisis, the front-wheel drive passenger car has replaced rear-wheel drive as the preferred layout for energy efficient cars. Again, Shadow the Hedgehog receives a faint memory of Maria as he is holding the white Chaos Emerald in his hands. The September 2005 sales data for all the vehicles vendor indicated SUV sales dropped while small cars sales increased compared with 2004 sales. They later state that a girl was blown up in an airplane it is likely that Molly is the one who receives that fate. Recent years have seen a move towards more fuel-thirsty sport utility vehicles in the United States and Canada, and this may be stopped by the high price of gas. Molly, being a GUN agent, uses an aircraft similar to the X Tornado to destroy the Metarex alongside the others. The increased price of oil might also encourage greater fuel efficiency. During the remainder of this episode, a group of Metarex come towards Eggman's base and Rouge, Shadow and Molly try to protect the base and get the white Chaos Emerald.

Recent months have seen billions of dollars invested in the oil sands. It seems that she is already liked by another man, whose name is unclear. They are a far less cost efficient source of oil than crude, but at 60 dollars a barrel, the tar have recently become very attractive to businesses. Shadow and Rouge meet her; Molly takes one look at Shadow and blushes. The most prominent example of this are the massive reserves of the Canadian tar sands. Accompainied by them is a orange haired female teenager by the name of Molly. The increased price of oil also makes previously impractical sources of oil attractive to businesses. Robotnik is visited by a small troop of the GUN army, how they got into Sonic's world is uncertain for now.

Outside the US, more than 50% of oil is consumed for stationary, non-transportation purposes such as electricity production where it is relatively easy to substitute natural gas for oil. In that same episode, Dr. Nigeria is working on burning natural gas to produce electricity instead of simply flaring the gas. But he cannot seem to find out who she really was. For example, China and India are currently heavily investing in natural gas facilities. In Sonic X's season 3, Shadow had no clear memory of his past; although in one episode (named "Molly's Dream" in the English translation of the Japanese anime) he seems to have an image of Maria in his mind, some sort of two-second flashback. Economists say that the substitution effect will spur demand for alternate energy sources, such as coal or liquified natural gas. Shadow, who is similar to Sonic, would probably be able to survive a fall such as the one he took (and it would even be likely for Sonic, according to those who believe that he is actually "Shadow 2".).

As a result during this period the Federal Reserve has rapidly been increasing interest rates to curb inflation. It should be noted that in the first episode of Sonic X season 3, Sonic survives a fall from orbit to the ground after his battle with Dark Oak, his super powers fading as he fell; yet he survived. This was driven by a 4.2% increase in energy costs. With the airing of Sonic X season 3 in multiple places, some hard proof that Shadow survived his fall to Earth is in place. In the United States, the Consumer Price Index rose by 0.6% compared to 0.2% for September. (Much to the chagrin of David Humphrey fans). Inflation has increased. He made short appearances after Episode 38, in flashbacks or otherwise, but he makes his true return in episode 60, “The Return of Shadow.” In Japan he is voiced by his game voice actor; in the dub, due to 4Kids' usage of only a specific set of actors, he is voiced by Jason Griffith, who also plays Sonic in the dub.

Despite the rapid increase in the price of oil, neither the stock markets nor the growth of the global economy have been noticeably affected. For one, it was Chris Thorndyke who reminded Shadow of his true promise from Maria, and not Amy Rose. But oil's historically high ratio of Energy Returned on Energy Invested continues a significant decline. Episodes 33 through 38 are based on Sonic Adventure 2, with a few differences from the game. In the United States, for instance, each $1000 dollars in GDP required 2.4 barrels of oil in 1973 when adjusted for inflation this number had fallen to 1.15 by 2001. Shadow also appears on the cartoon Sonic X. While total consumption has increased [22], the western economies are less reliant on oil than they were twenty-five years ago, due to substantial growths in productivity.
.

This could well be the case if a major storm were to hit the gulf, where the reserve is located. It is unclear whether or not this report will ever be updated with the information recently revealed in the Shadow game. demand for about a month in the event of an emergency, unless it is also destroyed in the emergency. [1]. The American Strategic Petroleum Reserve could on its own supply current U.S. This backstory is also what the Journal Entries in Sonic Battle work with. Nevertheless, that loss of revenue would put a strain on government balance sheets. The report, a partial transcript, explained her findings on "Project: Shadow" which explains quite a bit about some questions fans have and brings up a slew of new ones.

Most economists see this as unlikely, partly because all developed countries have high fuel taxes that decrease as oil prices increase and can be eliminated in the event of a dramatic price spike. This official strategy guide offered eager players the chance to also learn a bit more about Shadow's past, in the form of a report written by Rouge the Bat. Some see these increases in the price of oil leading to a recession comparable to those that followed the 1973 and 1979 energy crises or a potentially worse situation such as a global oil crash. After Sonic Adventure 2 was released, a strategy guide was fashioned with the guidance of Sonic Team. There is controversy regarding the potential effects of oil-price shocks. He says he rescued Shadow with one of his robots when he fell from space at the end of Sonic Adventure 2 after Shadow defeated the FinalHazard, and that he simply lost his memory. the implications for the oil market are global."[21]. Eggman tell Shadow that he was lying.

[19] [20] The press release from the IEA states, ".. While fighting the final boss, Devil Doom, after around seven to ten minutes of battle, the player will hear Dr. These supplies would begin entering the US markets within two weeks of 2 September. The Metal Shadows are built like Metal Sonic, though styled after Shadow, and in place of black skin they have silver, as well as four streak colors: orange, pink, green, and blue. In order to stabilize world energy supplies, the International Energy Agency offered to sell two million barrels of crude oil and other refined products from national supplies. Also in the game, though unrelated, is the appearance of several "Metal Shadows" (and one normal-looking Shadow with yellow streaks instead of red) in the two-player mode. Bush stated, "This storm has disrupted the ability to make gasoline and deliver gasoline," and "This is going to be a difficult road."[18] Many people have observed however that stores of crude oil do little to address inadequate refinery and distribution capacity. In addition, Eggman has numerous Shadow robots called Shadow Androids.

EDT, on 31 August, President Bush announced the Energy Department was approving loans from the Strategic Petroleum Reserve and that EPA announced nationwide waver on fuel blends. In Shadow the Hedgehog, two of the possible endings claims that the true Shadow died at the end of "Sonic Adventure 2" and that, in fact, the Shadow in the game is an android; Eggman tells Shadow this. On 5:10 p.m. Also Omega hints at the end of Sonic Heroes that Shadow may be a clone and the "original must exist somewhere." Then again, Omega also seemed pretty sure that the Eggman he fought before Last Story was the real one, but then again, Omega was imprisoned for some time, and most likely had no knowledge that Eggman had been contained elsewhere by Metal Sonic. Airports began to report shortages in aviation fuel on 2 September.[15] A shortage could lead to a decrease in food production.[16] Higher prices for heating oil and natural gas were expected as the winter heating season set in.[17]. In Japanese, the words "Robot" and "Artificial Lifeform" translate to roughly the same thing (Jinzou). [14] Many of these were blamed on panic buying. When Tails says: "Look at all of those eggmans robots!").

Shortages were feared or experienced in several states including Tennessee [12], Alabama [13], and South Carolina. However, that may actually be faulty translation that the game is littered with (i.e. In Stockbridge, Georgia, regular gas prices came to $5.87 at a BP station. The latter is bolstered by the fact that Rouge calls him one. Gas prices soared after the closing down of the major pipelines connecting the gas of the Louisiana region to the entire East Coast. There has been some debate on whether the current Shadow is the real thing, or a robot or clone created by Eggman. [11]. Another difference is that, while Shadow is willing to use guns, Sonic has said towards the beginning of Shadow the Hedgehog that he "wouldn't be caught dead using those things".

Louisiana Offshore Oil Port has not. Shadow shares every ability that Sonic has, meaning that they are truly rivals. Port Fourchon has also suffered long term damage. He and Sonic have been observed using their chaos powers while Super Sonic and Super Shadow. The port of Louisiana is one of its most important inlet for oil imports, and the gulf itself is a major oil producer. Both Chaos Control and Chaos Blast allow Shadow to also gain temporary invincibility and unlimited ammunition. The Gulf Coast is home to a major portion of America's refining capacity. trees, rocks) will fill up Shadow's Dark Gauge, allows him to use a new power called "Chaos Blast," a red wave of energy that destroys almost everything in its path at close range, 20 meters to be exact.

Hurricane Katrina had a major impact on oil and gas prices, especially within the United States. soldiers(or other hero based characters), healing aliens (or other dark based characters), and destroying regular parts of the environment (i.e. Continued concerns about Iran raised the price to $68.38 on January 31.[10]. Attacking G.U.N. Observers believe that violence in Nigeria, and Iran's friction with the West are responsible for this price increase. troops (or other hero based characters) and clearing away environmental debris will fill Shadow's Hero Gauge, enabling him to become to use Chaos Control, which (in this game) lets him fly at blistering speeds through a portion of the level while doing a fraction of damage to enemies he passes and/or slow down time during a boss fight. This was the highest increase since early October 2005. Attacking Black Arms aliens (or other dark based characters), healing G.U.N.

On January 17, sweet crude oil for February delivery rose by $2.38 (3.7%) to $66.30 a barrel. In Shadow the Hedgehog, Shadow can use one of two Chaos-based moves, depending on what actions the player takes. As a result, shortage of a particular grade of oil can keep street prices high, even when overall supply exceeds demand. Shadow also has a chaos move called Chaos Spear, a move that lets Shadow send a bolt of yellow energy at his enemies, and is similar to Sonic's Sonic Wind (although in Shadow the Hedgehog, he could only use Chaos Spear while in Super form). In addition, there are different grades of oil and each refinery is typically configured to process a narrow range of grades. Shadow used Chaos Control at the end of his own game using all seven Chaos Emeralds. While the street price of gasoline usually corresponds to the price of crude oil, refinery capacity can become the governing factor, particularly during periods of high demand. Sonic can also use Chaos Control, even with a fake emerald, though he only realizes this later.

Over the course of three weeks leading up to August 10, crude oil prices had risen by 13%. Shadow, like Sonic, can use the light dash. During mid-August, with a string of refinery snags (fires/other deterrents to oil refining), shrinking gasoline inventories, and a growing thirst for oil by American consumers, New York Mercantile Exchange traded crude oil futures surged past the $66 mark and briefly touched $67/barrel. He uses it one last time to send away the defeated Finalhazard, although this results in his apparent death. influence. He uses the Chaos Control ability four times in Sonic Adventure 2: once to escape from Sonic using the green emerald, once to rescue Rouge from the military base before it blows up, and once during the final duel against Sonic. Saudi Arabian King Fahd's death on August 1, 2005, meant a new regime that may be less amicable to U.S. He is only seen freezing time in Sonic Adventure 2 in 2 player mode, but in Sonic Heroes the time freeze is an effect of Team Dark's "Team Blast" special move, “Chaos Inferno”.

In June 2005 crude oil prices surged to record highs eventually breaking the psychological barrier of $60. The Chaos Control is usually used to freeze time or to teleport (or possibly both if those viewing someone move from somewhere to somewhere else in 'no time', then it would look like they warped). It then reversed course and headed to an all time high of $58.28, driven mainly by lingering concerns of a prolonged weak dollar. In Shadow the Hedgehog, when he becomes Hero Shadow, he uses Chaos Control to fly through part of the level; doing damage to enemies he passes. In April 2005 the price began to fall, reaching $53.32 on April 9. Using the power of a single Chaos Emerald, he can warp time and space. On March 16, 2005, the price surpassed the October 2004 high of $55.17 to close at $56.46. Shadow's trademark move is Chaos Control.

The price of light, sweet crude oil on NYMEX has been above $50/barrel since March 5, 2005. Shadow possesses many of his rival Sonic's abilities, namely the same blistering speed and agility. After retreating for several months during the winter of 2004/2005, prices rose to new highs in March 2005. From information translated off of the Japanese gamesite, he seems to be trying to promote a "cool" outlook, which may explain the shades he's wearing, and the way he rides Extreme Gear. These analysts believe the problem would be solved by increasing the efficiency of factories, homes and transportation and easing the demand crunch by using less energy and more renewable energy. His purpose in the story is unknown, but he is a speed character like Sonic the Hedgehog, Jet the Hawk, and Amy Rose and uses Chaos Powers to attack his enemies. Still others suggest that the main issue is a lack of energy efficiency in industry. Shadow is a character in Sonic Riders.

A July 14, 2005 Morgan Stanley report[9] suggests that opinions of the oil market could burst just like a bubble if indications of declining Asian demand continue. attacked the ARK, he went insane and planned to end all life on earth, but Shadow follows Gerald's original goal (while he was sane, it is considered his true goal). If these speculators are wrong, current prices may actually be a price bubble, and the price could thus collapse. After G.U.N. These people argue that speculators foresee increasing demand, decreasing supply, or both, leading to a long term increase in the price of oil. Thus, Professor Gerald created the Eclipse Cannon, capable of destroying the Black Comet, and had depended on Shadow to execute this plan. Others believe that the price of oil is almost entirely speculative, and that the increase in price is due to oil speculation extending into the long term. Soon after it is revealed that Gerald Robotnik somewhat discovered why Black Doom desired the Emeralds, which involved the annihilation of all living beings (and androids) on Earth.

Not only is there a limited amount of fossil fuels which have been burnt as fuel, but however much remains will be used faster by a growing industrialized world population and what remains will be more dificult to get since the easiest wells have been tapped and the remaining sources will be fought over in resource wars. Using Black Doom's DNA, they created Shadow the Hedgehog, who would both aid Professor Gerald's research and help Black Doom get the Emeralds. A more fundamental problem that some believe is causing the price to rise is the probability of peak oil already or soon to be reached. He made a deal with Black Doom: if Black Doom helped him with his research, he promised to deliver to the alien the seven Chaos Emeralds. Critics argue that these problems periodically push price higher, but that they are not fundamental or long term enough to cause the large jump in gas price. However, he had some troubles in his experiments, and in order to achieve his goals, he contacted the Black Comet, home to Black Doom and the Black Arms. Some people and news agencies argue that labor strikes, hurricane threats to oil platforms, fires and terrorist threats at refineries, and other general problems are responsible for the higher gas prices. As mentioned before, Professor Gerald Robotnik was charged with the project of researching immortality.

Since oil is traded in dollars, the price must increase for OPEC to maintain buying power in Europe. This game also featured the long awaited return of Super Shadow. One other important cause is the United States dollar's slump against the Euro. There are 10 endings, plus a "Final" ending, which ties together all the endings to reveal the truth about Shadow's mysterious past. The short term price of oil is partially controlled by the OPEC cartel and the oligopoly of major oil companies. The player can change sides throughout the story, resulting in many forks in the plot, and the ending is influenced by the player's actions through the entire game. Even if oil supplies themselves are not reduced, some experts feel the easily accessible sources of light sweet crude are almost exhausted and in the future the world will depend on more expensive sources of oil. Eggman.

Despite this there is increasing discussion of peak oil and the possibility that the future may see a reduced supply of oil. army and Sonic and friends, the villain side, represented by the Black Arms and a neutral side, represented by Dr. This rate of increase is faster than that of any other date in the past. The game centers wholly around Shadow and his mysterious past, and the player can choose between three moral positions: the hero side, represented by the G.U.N. World supply (specification) came in at 83 million barrels a day during 2004 in department of energy EIA calculations ([8]). Eggman soon gets involved in, resulting in the rest of the Sonic cast getting entangled in the conflict as well. Gas prices in the region, normally 70 cents below the national average, were at $3.12 on August 30.[7]. army from Sonic Adventure 2 and the alien race Black Doom rules known as the Black Arms, which Dr.

Short-term shutdowns because of power outages knocked out two major on-shore pipelines, and at least 10% of the nation's refining capacity was not operating in the wake of the storm. He sets out to find them, however it gets him caught up in a conflict between the G.U.N. market. A mysterious figure, Black Doom, appears before him and requests that he brings him the seven chaos emeralds "as promised", and then vanishes. In late August, 2005, Hurricane Katrina crippled the supply-flow from off-shore rigs in the Gulf Coast, the largest source of oil for the domestic U.S. He sees a cloud appear and the Black Arms fall from it into the city. Outside the Middle East other oil producers have worried investors such as the strikes political problems in Venezuela and potential instability in West Africa. In Shadow the Hedgehog, which takes place after the events of Sonic Heroes and possibly before the events of Sonic Battle and Sonic Advance 3, Shadow is standing outside the city, reminiscing of the only memory he has, of Maria's death.

The war in Iraq, Iran's nuclear program, and questions about Saudi Arabia's internal stability all could in the future lead to a dramatic fall in the supply of oil. Because shadow has his memories back in this game, many people now think that it takes place after Shadow the Hedgehog. One of the most important is growing turbulence in the Middle East, the world's largest oil producing region. Also if the player beats the game, the player can play each of the character's story again and when the player completes it, the player will discover that Project: Shadow was put on hold because of Emerl.
There are a number of reasons why oil traders feel that oil supplies might be reduced. It has also been suggested that the game is not canon, but there is little evidence either way. Note: the total percentage exceeds 100 because the overall demand from all other countries decreased during the same period.. Sonic Battle occurs after Sonic Heroes.

Department of Energy Energy Information Administration estimates: [6]. In Sonic Battle, Shadow has apparently regained his memories, though it is never explained how. Sources of the world-consumption-increase in 2004 compared to 2003 (total increase of 3.4%), according to U.S. However, Omega does reappear in Shadow the Hedgehog, still trying to overthrow Eggman. New demand is also coming from emerging industry in third world nations, including India and especially China which is developing a western-style car culture and whose manufacturing bases have grown very rapidly in recent years. It isn't explained what happened to Metal Sonic or Omega, and they are missing from Sonic Battle. economy currently accounts for one-quarter of all demand. At the end of the game, he was last seen with Omega and the defeated Metal Sonic.

The U.S. During the battle with Metal Madness, Metal Madness speaks that "even the Ultimate Life Form cannot stop me" which suggests that the Shadow that is in Sonic Heroes is indeed the real Shadow, created by Gerald Robotnik. market, the source of an increasing percentage of the world's demand for petroleum. When Metal Sonic transformed into Metal Madness, Shadow worked with Rouge, Omega, and Teams Rose and Chaotix to distract him long enough for Sonic to power up into his Super Form. High demand is led by the U.S. However, Omega reassured her that the original Shadow had to exist somewhere in order for Eggman to make copies. . As Omega arrived to destroy the room and everything in it, Rouge affirmed her belief that their Shadow was a robot, even though this is not known for certain.

The previous high was $2.38 per gallon in March 1981, which would be $3.03 per gallon after adjusted for inflation.[4][5]. Afterward, Rouge stumbled upon a whole room filled with hundreds of cloned Shadows. The average retail price was nearly $3.04 per gallon. Eggman. In the United States gasoline prices reached an all time high during the first week of September 2005 in the aftermath of Hurricane Katrina. Eggman's Empire and discovered that the person they had been chasing was a fake Dr. A record price of $70.85 per barrel was reached on August 29, 2005.[2] While oil prices are considerably higher than a year ago, they are still roughly 25$ from exceeding the inflation-adjusted "peak of the 1980 shock, when prices were over $90 a barrel in today’s prices" [3]. Regardless, Shadow continued his mission, proclaiming that "even if I'm not real, I'm still the ultimate life form, Shadow the Hedgehog!" They defeated Dr.

By August 11, 2005, the price had been above $60/barrel for over a week and a half. What this implies about Shadow is not known for certain at this time. The price of standard crude oil on NYMEX was under $25/barrel in September 2003. As the team ran to continue the mission, Metal Sonic, who was disguised as the Eggman robot and was then out of earshot from the team, claimed that he had successfully copied the Ultimate Life Form data (Shadow's DNA). At the same time, Cuba has experienced electricity shortages. Eggman proclaiming that he "has no past to remember," Shadow discovered a half-destroyed Shadow robot and realized that he too might just be a robot. These nations must resort to limiting imports or rationing their existing supplies. Soon after hearing Dr.

Many countries in Sub-Saharan Africa lack the foreign exchange reserves (ie, Dollars) to purchase enough oil products at the ever increasingly higher prices. Eggman. The Indonesian president had instituted subsidies to control the price of gasoline.[30]. He joined forces with Rouge and Omega to form Team Dark (as their speed member) and hunt down Dr. A senior minister of Singapore expressed concern at the oil crisis in Indonesia.[29]. After saving Rouge from a rampaging robot called E-123 Omega, it was revealed that Shadow has amnesia and could not remember anything before his release from the stasis tube. [27] New sources of energy were sought to deal with the crisis.[28]. Eggman's bases.

In the Philippines, the oil crisis caused its public to call for immediate government assistance. In the game Sonic Heroes, Rouge discovered that Shadow was alive and in a stasis tube located in the deepest part of one of Dr. combined other non-OECD: 21%. There probably is no canonical age since Shadow is immortal. UK: 3.5%. On the other hand, Sonic Battle states that Project: Shadow was completed around a week before GUN attacked, meaning Shadow was anywhere between 3-7 days old when the ARK was shut down. Canada: 4%. He has been in existence for well over 50 years but was kept by the military in chronic stasis for that time, and hasn't aged a day.

Asia outside Japan and China: 13.8%. Physically, Shadow appears to be 15 (around Sonic's age), though his chronological age is different. US: 19.4%. However, the already exhausted Shadow used the last of his energy to do so, and fell to Earth, supposedly dying. China: 38.9%. Together they destroyed Finalhazard and used Chaos Control to stop the free-falling ARK from destroying the Earth. Using the power of the seven Chaos Emeralds, Sonic transformed into Super Sonic and Shadow transformed into Super Shadow.

The massive beast noticed, and in its determination to bring forth Earth's destruction, used a strange form of Chaos Control to merge itself with the ARK to continue the crash course as a new beast now known as Finalhazard. Shadow fought with all his might, but Sonic and Knuckles stopped the emeralds before Shadow could finish off the Biolizard. Shadow urged Sonic and Knuckles to leave the Biolizard for him to deal with and to worry about stopping the Chaos Emeralds. He reached the core to see Sonic and Knuckles unable to get past a large lizard-like creature, the Biolizard, a prototype ultimate life form created by Project: Shadow.

Amy continued to plead however, and her words set off a suppressed memory of Maria, a memory of what Maria had really asked of him when she sacrificed herself — to give everyone on Earth a chance at the normal life her premature death at the hands of the Guardian Unit of Nations had denied her (to "give them a chance to be happy.") With a tear sliding down his cheek, Shadow realized that in trying to fulfill Maria's dying wish, he ended up dooming it, and rushed to redeem himself by helping Sonic and Knuckles seal the power of the Chaos Emeralds. She begged Shadow to come to their aid, but he refused, insisting that the people of Earth didn't deserve his pity after killing an innocent and harmless Maria and that even if he wanted to help, the program could not be deactivated. As everyone rushed to stop this from happening, Amy Rose stumbled across Shadow in the same room that he and Maria often spent time in. With the seven emeralds powering it, the ARK contained enough energy to shatter Earth to pieces upon impact.

The ARK automatically moved the Chaos Emeralds from the central control room to the core of the ARK, and set itself on a collision course with Earth. With the power of seven emeralds, the Eclipse Cannon would not unleash its full strength, but instead activate a program Professor Gerald Robotnik somehow managed to leave there. However, as Eggman had taken the bait, Shadow had completed his task. During their final duel, it is not known if Sonic defeated Shadow or if Shadow defeats Sonic, but either way, the ending turns out the same because while Tails was distracted by this, Eggman stole the last Chaos Emerald and placed it in the Eclipse Cannon.

Together with a treasure hunter named Rouge the Bat, the three banded together and acquired six of the emeralds, providing enough power to destroy half the moon. The Eclipse Cannon required seven Chaos Emeralds to function. In order to concede this and to fulfill Maria's last wish for (what he believed to be) revenge on those who lived on Earth, Shadow led Eggman to the ARK and showed him the ultimate weapon: the Eclipse Cannon, a giant laser cannon with the power to destroy an entire planet. Eggman one wish, which was the domination of Earth.

As a reward for setting him free, Shadow promised to grant Dr. Eggman attacked the complex looking for "his grandfather's legacy" and freed him. His capsule was captured by the military and stored in the Prison Island for 50 years, until Dr. Shadow still mourns over Maria's death.

When the military attacked ARK to shut down the Ultimate Life Form project, Maria supposedly sacrificed herself in order to let Shadow escape to Earth in a suspended animation capsule. Shadow seemed to have developed a friendship with the Professor's granddaughter, Maria Robotnik and often looked down to Earth, wondering what the purpose to his life was. He was created by Professor Gerald Robotnik, the grandfather of Doctor Eggman with the help of Black Doom (who had his own shifty motives to have Shadow collect the Chaos Emeralds so he can teleport the Black Comet to Earth and take over Earth) aboard the Space Colony ARK. Shadow is the end result of the "Ultimate Life Form" project (called "Project: Shadow"), a secret government genetics project shut down a half century ago whose objective was to reach immortality.

All of the details about Shadow's past are extremely clouded. Some fans believe he may still want revenge on the Guardian Unit of Nations, but there is so far no evidence supporting this statement. It is likely that his new personality will be revealed in the next game he is in, Sonic Riders, where he appears as an unlockable character. His personality after this currently is not known, but people are assuming that he'll have the same personality as his first appearence.


After fulfilling his promise to Maria by defeating the Black Arms, Shadow leaves his past behind and moves on. He is fueled by revenge on the humans for the death of Maria, and later his quest to discover the truth of his past. He generally isn't a very pleasant person to be around, but always loyal to his closest allies, unless he sees them as an obstacle. He is cold, and arrogant.

He is constantly haunted by his memories of his beloved Maria. He is generally quiet, and a loner - distancing himself from most of the Sonic cast. Shadow is a lone wolf and an anti-hero; his motives are unknown and his true alignment (good or evil) is a mystery. .

Shadow is 3'3" tall, and weighs 77 lbs, exactly like Sonic. He has also appeared in some of the Sonic Archie Comics. He is an anti-hero and the dark rival of Sonic the Hedgehog and first appeared in the Dreamcast game Sonic Adventure 2. Shadow the Hedgehog is a character in the Sonic the Hedgehog series.

Shadow the Hedgehog: "I Am (All of Me)", a hard rocker which rips off Pantera's "5 Minutes Alone". Sonic Heroes: Team Dark's "This Machine". Sonic Adventure 2: "Throw It All Away", a techno-industrial metal song, sounds like Slipknot. In Japan, he is voiced by Kouji Yusa.

Previously, he was voiced by David Humphrey in the games; many fans want David Humphrey to return as his voice in that medium. In Sonic X and all future video games after Shadow the Hedgehog, Shadow will be voiced by Jason Griffith, who also does the voice of Sonic in the same media.