Read this article about Saudi Arabia's decision to keep pumping tons of oil, despite a huge surplus of oil already on the market.
Read and think:
1) Which of the PEES is this?
2) How does this affect Canada's economy?
3) Why would Saudi Arabia be doing this?
4) How does this affect you?
http://www.cbc.ca/news/business/saudi-arabia-opec-oil-1.3437997
I want this one marked: I believe this P, E, and E. Saudi Arabia' decision to keep pumping oil totally lays down an economic cushion but the Canadian economy is crumbling. By the end of this year jobs and construction will cut in half again. Many have been lead to believe they are doing this "as an attempt to bankrupt US shale oil producers that emerged with the advancement of fracking technology" -http://www.independent.co.uk/news/business/news/saudi-arabia-is-paying-the-price-for-its-war-on-us-shale-oil-a6789931.html
ReplyDeleteThis barely effects me honestly. I still have heat and hydro at home, I dont drive so im not concerned about the price of gas. Really the biggest mark it leaves on me is concern for the environment. When you burn crude oil it creates an alarm amount of carbon dioxide, hence global warming. Continuing this unnecessary pumping is truly killing our planet. Oil pumping has literally put enough carbon dioxide into the atmosphere to raise its levels higher than they have been for hundreds of thousands of years. THIS IS A PROBLEM.
i agree with Kasie. Even though i don't drive this still affects me. burning oil is destroying the environment and us along with it. smog levels are at a record high, sea levels are rising, and no one is doing anything to stop it. if we don't act soon, we might not be able to reverse the affects of climate change.
DeleteGood post. Needs a little more though.
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ReplyDeleteI agree with you statements above. Like you, the price of oil does not directly affect me. However it does have great affects on society and our country. The surplus of oil production now will become an issue within our generation. A surplus now will lead to a shortage in the future, something that should concern us
ReplyDeleteI would also have to agree with the comments above. Even though some do not drive, the issue of burning oil is still a problem for everyone. Many things are being affected by global warming such as agriculture, glaciers, and ones health. I believe that humans are creating their own destruction by using all this oil and we are all just expecting our planet to be okay when in reality global warming is slowly becoming worse and worse.
DeleteMark please!
ReplyDeleteSaudi Arabia’s decision to decrease oil production reflects on political, economic, and environment issues. Saudi Arabia is at the top for economy statistics and in relation to politics, the article states: “Beyond the current preoccupation with market share, the Saudis also have their eye on the long game. Even as climate change becomes more of a factor for crude producers, the world, at least for now, still runs on oil. The Saudis would obviously like to keep it that way for as long as possible.” - meaning they know oil is in high demand but are still going to throw everyone else in the world a supply shock. In relation to an environmental point of view, global warming and climate change has increased in awareness for the concern of human kind. The effect of CO2 emissions from cars has contributed largely to global warming which affects the environments of plants and animals. i.e. our source of food.
Shortening oil production affects Canada’s economy because we are one of the countries that depend on the oil production for income. Alberta in particular is suffering from reduced production because they rely highly on it.
Saudi Arabia is doing this simply because of supply and demand. Think of it like when there is a great supply but low demand, the price will be low. But if there is a low supply and a high demand, the price will be high. OPEC believes this decision will all work out and the price and production of oil will be balanced again by 2040.
Reduced oil production and higher prices for oil doesn’t affect me on a huge scale (well if you think precisely... petroleum-based products are everywhere and in everything we use but higher costs won’t affect me hugely). My biggest concern, like Kasie and Emma is the environment. Crude oil has many negative effects on the environment so reducing the effects would be curtailing production and changing the price.
http://www.opec.org/opec_web/en/1089.htm
Great post. Referencing a line in the article is always good. What does low oil price mean for Canadians though? Job losses, weak dollar?
ReplyDelete