Commodity Trade Mantra

Posts Tagged ‘Oil Extraction’

Why We Need Oil Prices to Rise to $120 Per Barrel or More

When oil prices fall from $100 per barrel to $50, the incomes of a large share of people are adversely affected. This drop in income tends to radiate outward to the rest of the economy because each worker who is laid off is forced to purchase fewer discretionary items & is also less able to take on new debt, such as to buy a new car or house.

The Oil Glut And Low Prices Reflect An Affordability Problem

There has been a belief that oil supply decline will come by way of high oil prices. Demand will exceed supply. But it seems that the decline in supply will come through low oil prices. The oil glut seen now reflects a worldwide affordability crisis, which in turn keeps demand depressed. Lack of demand keeps prices low–below cost of production.

Falling Oil Prices and the Fallout

Will Western American states continue to boom without $90/barrel oil prices? What will American GDP look like without this latest bubble industry to fuel job creation, tax revenue, and investment? It’s impossible to say right now, although the price of oil in relation to the last four recessions does provide some fuel for speculation.

Making Sense of the US Oil Story

If US oil producers have the option of selling their crude oil abroad, perhaps they can get a higher price for it. If US oil producers can get higher prices for their oil, this may very well filter through to higher oil prices for US consumers, and less oil consumption by US consumers, but this is not the concern of oil companies.

Oil Limits And The Economy - One Story; Not Two

Does GDP growth lead to more oil & energy demand or does the availability of cheap oil & other types of energy power the economy? Oil & other forms of energy are used to power the economy. Historically, rises and falls in the use of oil & other types of energy have tended to parallel GDP growth.

A Forecast Of Our Energy Future; Why Common Solutions Don't Work

In order to understand what solutions to our energy predicament will or won’t work, it is necessary to understand the true nature of our energy predicament. Analysts assume that our problem is a slowly developing long-term problem. In fact, it is a problem that is at our door step right now.

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