I need a discussion response to the following post Collapse Oil is not easily ac

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I need a discussion response to the following post

Collapse

Oil is not easily accessible to the United States, as it is in Venezuela or Saudi Arabia (Zucchi, CFA Kristina., 2014). From 2008 to 2012, the prices for oil were extremely high, resulting to high gas prices. This drove to the United States to extract oil through a drilling technique, known as hydraulic fracturing. Fracturing allowed us to access oils simply through “extracting oil or natural gas” from underground (Making the Connection, 2012). The fracking boom occurred in the United States later in comparison to other countries. Fracking is on the rise now making up over half of all U.S. oil output (Making the Connection, 2012). To put in a better perspective, there were only 8,000 wells but expected to be at 50,000 wells (Making the Connection, 2012). In addition, the United States is predicated to have the lowest energy costs due to the increase of wells. The impact on energy prices and the American Aggregate Supply from fracking is insane!

The economical improvements lead the SRAS curve to shift to the right (Making the Connection, 2012). The increase in oil and gas will open up new job opportunities, thus increasing the real GDP! Overall, the fracking boom has a ripple effect, putting extra money in one’s pocket then back towards the economy.

WC: 215

References
Zucchi, CFA Kristina. “Do Countries with The Most Oil Reserves Actually Produce The Most
Oil?” Investopedia, Investopedia, 24 Sept. 2014, www.investopedia.com/articles/active-trading/092414/do-countries-most-oil-reserves-actually-produce-most-oil.asp.

Making the Connection. “Fracking” Transforms Energy Markets in the United States. November12, 2012.

Explanation / Answer

The following points can be made from the above case:

-The new technology came out to be a boom to the US oil department as the free land area in the US is much which led to implementation of thousands of oil wells throughout the country.

- Also it generated thousands of jobs and decreased the high unemployment and uneven wages distribution factors of the country.

-For the public it solved the problem for gas demand and made a positive impact towards their government.

-Economically, all this led to increase in GDP of the country as it creates jobs and income sources.

The short run aggregate supply curve (SRAS) that demonstrates the supply side of the aggregate market shifted towards the right which indicates increase in the real GDP as stated in the case.

-Hence, a ripple effect that led to a positive chain reaction one after the another occurred both economically as well as industrially in the oil market.

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