U.S. Oil’s Growth Challenges Investors

 

 

U.S. Oil’s Growth Challenges Investors

 

 

 

Name

 

 

 

 

Course

Professor’s Name

School name

Date

 

 

 

 

302 Words

 

 

 

 

 

Wall Street Journal

Article Submission Report

 

Student_______________________

 

Class (Micro or Systems Class) Hour________ Day_______

 

Title of Article U.S. Oil’s Growth Challenges Investors

 

Date of Article_10/11/2019_WSJ Section U S_

Must be from this week’s publication (Monday – Saturday)

 

Subject Summary: (In your own words, summarize the article you selected and explain how it ties to, or illustrates the subject of Microeconomics/Economic Systems or economics in general)

 

1.  The article “U.S Oil’s Growth Challenges investors” is about oil production. The U.S is the leading producer of oil; however, the surplus production of oil in recent years has made the country to face some challenges. The increased oil production has added to a supply glut, which has led to a price reduction. “The energy stocks in the S&P 500 have fallen with approximately more than 12% in the past year” (Toy, 2019). For investors, the decline in oil prices has reduced their investment. The surplus oil production has positively affected the economy because it has reduced costs for both motorists and manufactures. Economics is a field of social science concerned with the production, consumption, and transfer of wealth. It can also be defined as a field of study concerned with, distribution of goods and services. Thus, the article illustrates the subject of economics because it discusses the effects of surplus oil production in the United States of America. In terms of the distribution of goods and services, the article states, “the rise in U.S. exports explains how the country contributes to the global oil glut (Toy, 2019)”. Microeconomics is a branch of economics that focuses on individual consumers and businesses. Thus, the article brings forth this aspect by highlighting the effect of oil growth on manufacturers and motorists.
2. I found this article relevant to my study of Microeconomics/Economic Systems or economics in general because it references/illustrates the following laws, principles, and/or concept(s):
   1. Scarcity concept of economics –    Oil as a utility in the USA has lost its value because it is not limited or scarce. The reason being the mere utility does not create value unless a product is limited. 
   2. Transferability_-_The concept of transferability is brought out because of USA exports oil to other parts of the world.
   3. The law of demand__-The demand for oil is low.
   4. The law of supply __-The supply of oil is high.

 

 

 

Reference

Toy, S., 2019. U.S. Oil’s Growth Challenges Investors. The Wall Street Journal. Available at: https://www.wsj.com/articles/u-s-oils-growth-challenges-investors-11573387200?mod=hp_lead_pos5