1. The first figure below shows US petroleum imports, exports and domestic produ
ID: 1135601 • Letter: 1
Question
1. The first figure below shows US petroleum imports, exports and domestic production as a function of year from 1973 to 2016. In a given year, what should be the relationship between imports,exports, domestic production and domestic consumption of petroleum? Indicate what assumptions you are making in giving your answer. Is there any reason why the relationship you expect might not hold exactly? Using your answer to the question above, use the graph to estimate petroleum consumption in the US in February 1982, October 1995 and July 2009. Are your results consistent with the data shown in Figure 1.10 of the book? 16000 4000 12000 10000 8000 6000 4000 2000 1968 June 1982 February 1995 October 2009 Jul 2023 March Below I show a graph of the US population as a function of yearExplanation / Answer
1) Assuming that world price of petroleum is less than domestic price the export of petroleum should be lower the import of petroleum should be higher, the domestic production of petrolemn should be lower than the domestic consumption of petroleum. The relationship weexpect might now follow if there is tariff imposed on imports. No, our results are not consistent with the data shown in figure 1.10 of the book this might because world price of petroleum is higher than domestic price.
The number 0.000017 units of barrels per person per day i.e. of year 2009 is most important if we talk about percapita consumption thisis because in 2009 population is very high as compare to overall consumption thus per capita consumption is significantly lower. The number in year 0.000041 units of barrels per person per day is most important when we talk about environmental effects of consumption this is because population is very low but total consumption of petroleum is very high.
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