Affect of oil on our economy Essay Example | Topics and Well Written Essays - 500 words

Affect of oil on our economic system - Essay ExampleOil also has consequences that ar unintended and have negative impact. In the previous(prenominal) decades, the prices of oil have always been high going for $100 per barrel. Because of increased oil consumptions in nations wish well China and wars in major oil countries standardized Iraq. The production of oil in fields that are conventional could not supply the demand efficiently hence the prices increased. The high prices made companies it Canada and USA to depart drilling, hard to get crude. Then all over sudden, the demand for oil started to reduce in places like Asia and Europe and in the USA, due to economies that were weakening and the introduced efficiency measures. Later in 2014, oil supply had travel much more that what is actually demanded. The unused oil was stored away for later use, by September, prices cut acutely (Cochran, et al.45).The ace before the fall boosted Texas economy for nearly a half a century was in the long run over. The oil business in West Texas will take at least two long time to recover as Houston audience was told by an economist who is familiar with Texas oil producers economic indicators. As the boom brought good moments in life, the downturn will lead to economic problems in Texas and other places that were beneficiaries of the boom (Henderson, Rebecca D 37). The cost of oil, permits issued and the numbers of rigs operating in Texas are in the decrease and this means the jobs of many mess are in stake. Oil indexes were at the peak in October at it stood at 312.9 but it reduced in December to 309.5, and that was officially the end of a 54 month duration that the Texas energy exertion expanded. It is expected that 50,000 upstream jobs will be lost in the Texas as the contraction of oil application continues, plus additional 250,000 more jobs that are related to the oil and gas industry. GE Oil & splosh is one of the companies that has cut job, it informed the regulators that it is going to lay off 330 of