An article titled “Is the U.S. Oil Industry Dominant? On the Verge of Oblivion? Neither"
by Robert L. Kleinberg and published on October 7, 2019, on The New York Times is discussed
in this paper. It focuses on the oil market in the U.S., the Middle East, and Europe. In the U.S.,
for instance, changes in the oil market are in substantial control as prices of the important
product rise and fall in effect to commercial pressures and investor performance. Moreover, the
article reflects that a recent Britain attack on an Iranian oil tanker did not considerably affect oil
prices. Similarly, Iran retaliated by seizing a British oil tanker, and still, the oil market was not
affected in the involved countries. According to the secretary of the State of Condoleezza Rice,
the cases by Iran and Britain would have turned out differently a decade ago. That is, prices
would have hiked over and above the minimum expected ratio. Moreover, it’s an interesting
phenomenon that observers and investors study; that an attack threatening such a wide
population globally had no substantial effect on oil markets and prices in general. The author
also notes that the U.S. demonstrates a considerable amount of strength in the oil market
industry, even without overseeing from an authoritative body, and it's not a low-cost supplier.
The reason behind this empowerment could be drawn by the fact that it holds an advantage over
other swing producers such and Saudi Arabia. The U.S. produces tight oil, which has not been
significantly exploited in other countries. The American oil market operates in the absence of
spare capacity, whereby oil is held in large amounts as a reserve that can later be pushed into the
industry for a relevant period. As a whole, this paper employs the Keynesian economic theory to
explain the concepts of aggregate demand and aggregate supply around the monetary and fiscal
policy.
The economic theory demonstrates that optimal industrial performance in economics can
be reached, and economic shortfalls avoided. However, this only applies when the aggregate
This study source was downloaded by 100000856941565 from CourseHero.com on 11-12-2022 16:37:00 GMT -06:00
https://www.coursehero.com/file/125960691/Economic-theories-analysisdocx/
by Robert L. Kleinberg and published on October 7, 2019, on The New York Times is discussed
in this paper. It focuses on the oil market in the U.S., the Middle East, and Europe. In the U.S.,
for instance, changes in the oil market are in substantial control as prices of the important
product rise and fall in effect to commercial pressures and investor performance. Moreover, the
article reflects that a recent Britain attack on an Iranian oil tanker did not considerably affect oil
prices. Similarly, Iran retaliated by seizing a British oil tanker, and still, the oil market was not
affected in the involved countries. According to the secretary of the State of Condoleezza Rice,
the cases by Iran and Britain would have turned out differently a decade ago. That is, prices
would have hiked over and above the minimum expected ratio. Moreover, it’s an interesting
phenomenon that observers and investors study; that an attack threatening such a wide
population globally had no substantial effect on oil markets and prices in general. The author
also notes that the U.S. demonstrates a considerable amount of strength in the oil market
industry, even without overseeing from an authoritative body, and it's not a low-cost supplier.
The reason behind this empowerment could be drawn by the fact that it holds an advantage over
other swing producers such and Saudi Arabia. The U.S. produces tight oil, which has not been
significantly exploited in other countries. The American oil market operates in the absence of
spare capacity, whereby oil is held in large amounts as a reserve that can later be pushed into the
industry for a relevant period. As a whole, this paper employs the Keynesian economic theory to
explain the concepts of aggregate demand and aggregate supply around the monetary and fiscal
policy.
The economic theory demonstrates that optimal industrial performance in economics can
be reached, and economic shortfalls avoided. However, this only applies when the aggregate
This study source was downloaded by 100000856941565 from CourseHero.com on 11-12-2022 16:37:00 GMT -06:00
https://www.coursehero.com/file/125960691/Economic-theories-analysisdocx/
