Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Oil prices and economic effects
Oil prices and economic effects
Crude oil impacts on the world
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Oil prices and economic effects
Oil Field
(A persuasion paper on the pros of the oilfield)
Coming from a family who has been supported by the oilfield company all their life I would have to say that I would have to voice my opinion and say that the oil field can be a huge benefit not only to the people that work in that particular field, but to the nation as well. Many people have a strong opinion that the oil field is bad news and can cause many problems. I for one believe that the oil field can be one of the best things to ever happen in an area, it can supply jobs Schlumberger states that “We employ over 115,000 people and work in more than 85 countries” (Schlumberger, 2014). The main pro with oil field businesses is that mostly everything can be traced back to oil,
…show more content…
One of those pros being that as a nation, we can supply more with jobs due to the demand for workers in these companies. Thanks to the recent oil booms more people have begun to find work and the unemployment rate has decreased a noticeable amount. In 2008 when the oil boom hit North Dakota Travis Brown states that “North Dakota had the lowest unemployment rate of 2.6 percent”(Brown, 2014). That statistic is a known fact that if you were to have an oil boom in any state that the percentage of unemployment would decrease even more about what it was. “We are too busy to stop and think about the daily consumption of oil and gas, but almost everything we use or do has been produced using petroleum.” (Menezes,2014). Not many can understand that you can almost take anything you use in an everyday life and trace it back to petroleum oil. It is a huge commodity and sometimes I would believe that it can be just as important as water. …show more content…
People may argue that oil brings trash in and ruins small towns, when really it helps that town out immensely. Small towns that are stuck and when the oil field comes to town, it helps expand the town and the economy. “Shale oil turned this sleepy county seat surrounded by wheat fields into a Boomtown, drawing developers to build housing for a population that has more than quadrupled in five years.” (Brown, 2015). Eliot Brown explains that the oil has created a Boomtown out of a quiet small town in North Dakota. The last thing that the oil field brings that is a positive benefactor is that the oil field companies supply a variety of jobs . The unemployment rate has decreased and businesses have grown due to the currency coming in through the oil field
One of these factors was the logistical nightmare of redeveloping the infrastructure needed to transport oil to the refinery. As early as 1881, Standard oil operated approximately 3,000 miles of pipelines, eventually owning ninety percent of the nation’s pipelines. Although transcontinental railroads were an available alternative, pipelines were cheaper, reduced handling and storage fees, and were more efficient. The fact that modern oil companies invest hundreds of millions of dollars into speculating for sustainable natural oil deposits implies that such deposits are rare and hard to identify with a passing glance. If the spurts of oil proved to be isolated incidents, the capital invested in building pipelines and reestablishing a monopoly would have been squandered.
Conclusion: One of the greatest economic booms in history had an everlasting ripple effect on culture, businesses, and lifestyle in Texas. The discovery of oil in Texas allowed America to take leap forward into a leading nation. Texas oil gave America a fighting edge to win the war, gave Americans advantage to travel faster and quicker. Texas oil helped America go from agriculture nation into the top industrial nation much quicker than anticipated.
According to Brendan Smith, in his article “5 Reasons Why the Keystone Pipeline is bad for the Economy”, the project will have negative effects on the country’s economy. He argues that, building the pipeline will harm the economy because its impacts on the environment are costly and it will force the citizens and the government to pay the price. He continues by stating that the project will reduce jobs in the country because the fossil fuel industry had slashed its workforce. Smith points out that the effects of the project will be felt mostly by the poor people because they will not manage to cope with the adverse climate brought about by the increased use of fossil fuel. Moving on, he argues that the Keystone Pipeline will not sustain the economy because it cannot create more jobs in the country (Smith n.p). This is because a sustainable economy is one that creates more jobs...
Almost every single nation in our world today, the United States included, is extremely reliant on oil and how much of it we can obtain. Wars have been started between countries vying for control of this valuable natural resource. The United States as a whole has been trying to reduce its reliance on foreign oil and has had some success, especially with the discovery of the Bakken formation and projects like the Keystone Pipeline.
There is an abundance of oil underneath earth’s crust on land and in the water but getting to that oil can be proven as a challenge and a negative impact on the earth. Many of these oil reservoirs lie in federally protected land or water to minimize the negative impact on the earth. But should those restrictions be removed? Removing the restrictions can allow the US to tap into domestic reserves rather than rely on imported oil from the Middle East and Asia but tapping these reservoirs can also leave behind an impact that is harmful to this planet. “Critics oppose this move for fear that it will cause irreparable harm environmental harm. They point to the April 2010 oil spill in the Gulf of Mexico as evidence of the risks associated with offshore drilling” (SIRS).
However, the negative side effects such as contaminated water and air, make hydraulic fracturing a process that may not be worth the benefits. One benefit of hydrofracking is that it creates job in the current economic slump that America is in. The increase of hydraulic fracturing in the United States directly benefits the citizens, with the number of employees i... ... middle of paper ... ...
Pratt, Joseph A. “Exxon and the Control of Oil.” Journal of American History. 99.1 (2012): 145-154. Academic search elite. Web. 26. Jan. 2014.
Oil provided new fuel for transportation and manufacturing, even railroads were able to convert to oil. Oil helped manufacturing plants and farms move to a cheaper source of energy. Another significant factor of oil is that it helped encourage automobile production as well as roads. The production of the Interstate highway led to the movement of people and goods (Champagne, Harpham 13). Rapid industrialization of the Gulf Coast region sparked. By 1929 in Harris County, 27 percent of all manufacturing employees worked in refineries. By 1940 the capacity of the refineries had increased fourfold. The oil and gas industries carried a boom-and-bust mentality (Oliena 1). The economy flourish at times and failed other times, because the prices would rise and fall. When new oil was discovered in a particular place it brought about more people, overcrowding the schools and new housing. Yet a couple years later the town could experience a bust creating poverty and making the town a ghost town. The oil and gas industry transformed the government and its role with the economy. The Texas Railroad Commission was extended to regulate energy and to promote well-spacing rules. Higher education benefitted through the oil and gas industry ( Munch, Francis, and Rundell 604). In 1923 oil was discovered in the West Texas Permian Basin on university land. The Permanent University Fund was split up between the
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
Fourth, getting rid of crude oil will lower the cost of filling up your car with fuel. Even though fuel is always in high demand, the ever-abundant sweat fuel will keeps prices at a bare minimum. The only expense is the refining process. People won’t ever worry that they don’t have enough money to fill up their tank. Sweat fuel will always be available and will always be affordable. As a results, the economy will improve over time.
Since the early 2000’s, after new technological advancements in fracking and the discovery of large shale reserves across the country, fracking has increased domestic energy production substantially. Shale gas production has increased 20% from 2005 to 2012, promoting a more prosperous economic demand for domestic energy solutions (Pritchard). The demand for transportation vehicles, fuel, housing and water also increases with the expansion of fracking. Furthermore, the increase in fracking has increased employment significantly. In a country struggling to rebound from a recession, well-paying jobs are easily accessible in the booming oil field. This is evident in the prosperous state of North Dakota, in which the unemployment rate has fallen to 2.8 %( Gottesdiener). However, although this industrial expansion creates temporary employment, the consequences of mismanagement may also cost millions of dollars to repair. Fracking has the potential to create environmental damage such as water contamination, radioactive spills, and increased seismic activity that could cost thousands of dollars in damage. The cleanup of drinking water contamination is difficult and expensive, and ultimately rarely attempted. Moreover, the cost to replace the drinking water of contaminated homes and communities also cost a substantial amount of money (The Costs of
Wright, R. T., & Boorse, D. F. (2011). The U.S. dependency on foreign oil presents many negative impacts on the nation’s economy. The cost of crude oil represents about 36% of the U.S. balance of payments deficit. Wright, R. T., & Boorse, D. F. (2011). This does not directly affect the price of gas being paid by consumers, but the money paid circulates in the country’s economy and affects areas such as the job market and production facilities.
" Oil is the life blood of our modern industrial society. It fuels the machines and lubricates the wheels of the world’s production. But when that vital resource is out of control, it can destroy marine life and devastate the environment and economy of an entire region…. The plain facts are that the technology of oil-- its extraction, its transport, its refinery and use-- has outpaced laws to control that technology and prevent oil from polluting the environment…" (Max, 1969). Oil in its many forms has become one of the necessities of modern industrial life. Under control, and serving its intended purpose, oil is efficient, versatile, and productive. On the other hand, when oil becomes out of control, it can be one of the most devastating substances in the environment. When spilled in water, it spreads for miles around leaving a black memory behind (Stanley, 1969).
The oil & gas industry is among the largest industries in the world. The sector generates large revenues and employs a large number of people in order to meet the worldwide demand for energy.
The worst imaginable environmental catastrophe that could occur in Maryland has just become a reality. The lifeblood of Southern Maryland's Watermen has been forever affected. The ecosystems of the Patuxtent River and Chesapeake Bay have been irreversibly contaminated. The Three Mile Island and Chernobyl Nuclear Accidents have affected the world ecosystems; but the Chalk Point oil spill has reached us here in Southern Maryland. The ethical considerations with generating electricity from fossil fuels, specifically oil, has a profound impact on us all. We all use electricity to make our lives easier and more productive. By using this electricity have we given our permission for the oil companies free reign in order to provide us with the service we demand?? Are we just as responsible for the oil spill as the corporate leaders who run the companies? As citizens we are in a position to develop and enforce regulations to protect ourselves. Do we also protect the environment; or is the environment just something for us to use? These and many other moral dilemmas exist for modern man.