Economies: Petroleum and Economies Main Points Essay

Submitted By Kane-Mysondo

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Pages: 2

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Shawn Willis
10-28-2014
Economies

Main points of this article talk about how the fall in oil prices since 2010 make it clear that new for world oil is approaching not only due to the build up of supply but because it signals that the world economy is weaker than it was in the past. The state of oil and gas has been a big source in the U.S economy since the downturn in 2008. About 2 million jobs have been supported by the development of these resources and could hit 3.3 million by 2020. Back in 2005 when the US imported 60% of oil an impact of a price drop would have been taken by countries that export oil but now imports under 30 percent these price drops will have a big impact on the US economy. The production of this new oil is too expensive to produce to due to falling prices into 80$. Bulk of this oil seems to be economical at 75$ even as companies improve their production.

This article is emphasizing the fact that the is new oil which is called tight oil is becoming popular and it is received through horizontal drilling which was the same technology that created the shale gas boom. This new oil is causing a fall in oil now which has not happened since 2010. The drop in oil is not only due to the build up of supply but because world economy is just weak. I believe this news article is important because it is introducing that current oil prices will be lowered due to the bulk of this new oil being introduced and purchased at 75$ a bulk. Oil prices falling too low will

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