Economists like to say that it all boils down to
supply and demand. But there are many factors
affecting the tried-and-true laws of economics –
and those factors have contributed to today’s
high-demand, tight-supply world energy market.
For starters, demand is very strong, coming from
mature economies like the United States and
Europe plus the developing economies of
countries like China and India. And as per
capita income rises in those developing
countries, the demand for energy is expected
to continue growing.
Tight supplies have been aggravated by political
instability, resource mismanagement and
weather. The Iraq insurgency, civil unrest in
Nigeria and political uncertainty in Venezuela
are among the examples. And hurricanes in
the Gulf of Mexico have affected operations
in both the United States and Mexico.
Finally, the decline in the value of the U.S.
dollar against other countries has put American
consumers at a disadvantage. American
consumers must now pay more for crude oil
than countries with stronger currencies.


Comments

Name (required)

Email (required)

Website

Speak your mind

css.php