Tuesday, September 20, 2011
Americas and Oil Companies
Throughout the Americas, countries are making new oil rigs to drill in new found places with oil. A Chinese-built rig has been placed in Cuba to drill in the waters for more oil. But surprisingly, the hottest new oil market is in North Dakota's prairie where 400,000 barrel of oils are being produced daily and it may ease our dependence on Middle Eastern oil. Western oil companies are now focusing their sights on clusters on oil fields in the Americas. Now that we are drilling in our own land and country, this might help us control the gas prices and ultimately lower them. Though the Middle East still can control the prices because their oil fields are cheaper to develop and many countries want to go to them to save money. We are still looking for new places to develop oil other than the Middle Easy and now North Dakota. Right now we are looking for oil in regions near Russia in part of the Arctic Ocean. The biggest deal is how much the cost will be to actually drill in at the site. If it costs too much money, then we won't drill there and we'll have to keep drilling in the Middle East. A big oil boom, soon is much needed to keep this country at peace and from getting in to even more debt. The Americas need to become more producers of oils to help each other and not allow outside countries to drill from them.
Subscribe to:
Post Comments (Atom)
6 comments:
Do you think it’s economically and politically sound to find an oil cash in America and not let any other countries have access to the find?
In the short term The United states will be inelastic to their price changes on gas and oil because we can depend on ourselves rather than other countries. But in the long run since it is cheaper for the middle east to develop oil feilds than the US. Our prices will become more elastic to be able to compete with the prices that the middle east set.
- Mercedez S.
In the world today, the demand for oil is still increasing. It is necessary in everyone's life, but the price is increasing daily. Since the demand for oil is high, there is more demand to drill for oil, which is also very expensive. Also, because the country is already deep in debt, there wouldn't really be any way to pay the money needed to drill for oil.
I agree with you Matt, a big oil boom is needed badly in America. People drilling in our own country is great, I am glad there doing it because I don’t see how we can go to war with a country and try and buy oil from them at the same time. The demand for drilling oil and oil is high and with the debt were in how are we going to pay for all of this.? I agree with drilling in America but it wouldn’t be economically sound because we could drill in other country for less. Yes, its going to cost us still but at least it will be cheaper we need to save all the money we can. We shouldn’t have to drill in America unless we have to, which we do because gas for everybody is a must. I’m kind of stick in between the two whether we should or not, I think we should and then we shouldn’t but that why I’m not the president so…
The development of oil fields in the U.S. can significantly help the current issues of escalating prices and demand for petroleum based products. The U.S. would be able to better monitor the use and direction the oil market would go if we refined and sold it all at home. I ultimately agree with Mercedez because the U.S. would most certainly increase inelasticity toward oil and gas if we controlled the production and sale of, but on the other hand in the long run it would also increase elasticity by creating a market that could compete with Middle Eastern oil prices. Although this presents a viable solution for the current price fluxes of gas and oil, when all petroleum based products run out we will need a new energy source to support our society.
- Josh T
The decision for the U.S. or any country to drill in a certain area can be thought of as a trade-off. The U.S. would benefit from using oil sites in the states, because then they would not have to rely on the Middle East to provide our oil. On the other hand, the price of drilling in the U.S. can be costly. The U.S. must decide if they would prefer the oil or the money. In my opinion, the United States will most take advantage of the drilling sites in America, becuase oil is an inelastic good.People go through hundreds of gallons a month just to get to work or school. Even if you do not own a car, some form of transportation is necessary, such as a bus or train. These require oil as well. Oil will always remain an inelastic good because it is a neccessity in people's every day lives.
-Morgan C.
Post a Comment