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Term Paper 2

In: Business and Management

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Term Paper Two

In recent times, the supply and demand of oil has fluctuated. Prices for oil have skyrocketed to great lengths, as well as dropped to amount many have not seen in years. Currently, the price of a gallon of gas has been around two dollars and twenty five cents, much cheaper than a year ago when gas prices were inching to four dollars a gallon. With plummeting prices, many individuals who are involved in the oil industry have seen decreases in wok flows, and have faced numerous shutdowns and layoffs. Found in the New York Times by the Associated Press, there was a very well-written and interesting article regarding the supply and demand of the oil industry called: Cheaper Oil Buoys Consumers, Hammers Producers. In this chosen article, the author writes about how the effects of the supply and demand are playing a dampening roll on the economy. Although the consumers are enjoying the much cheaper prices, with the dollar per barrel falling, the economy takes a large hit of great financial loses. The article brilliantly express that in modern times, the supply of oil is defeating the need. U.S. oil production rose from 5 million barrels a day in 2008 to an estimated 9.3 barrels a day in 2015. That unexpected surge, coupled with OPEC’s unwillingness to cut production, left the world awash in oil and sank prices. (Associated Press). Although the said article spoke predominantly about the oil industry, it did have some interesting aspects that backed the issues of the economy taking a hit very well. The author(s) wrote how although gas prices have been much cheaper recently, the drops have been friendly on the consumer’s wallet, but not that of the economies. Modern vehicles like that of eco-efficient are needing much less gasoline, which with already the decline of oil prices only further decreases the productivity in stimulating the economy for...

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