Economic concept Essay - 550 Words

Economic concept (Essay Sample) Content: Oil Demand in USAStudent NameUniversity NameCourse Name and NumberInstructor NameDate of SubmissionWalsh (2014) in the Financial Times online newspaper writes an article titled U.S. Oil Demand Grew Faster Than Chinaà ¢Ã¢â€š ¬s in 2013. That Wonà ¢Ã¢â€š ¬t Last. The article looks at the unexpected rise in both production and demand for petroleum in the USA economy. It comes out to show that oil demand in the recent years has been on the decrease in recent years since the 2008 financial crises. This has seen the daily increase for oil in the USA become lesser compared to that of China which has been on a steady rise.Improved drilling and better hydraulic fracturing in areas around North Dakota and Texas has resulted in enlarged daily supply of Oil in USA (Walsh). Statistics from the International Energy Agency (IEA) showed that oil production in the United State had risen to 990,000 barrels per day in 2013. This indicated a 15% increase in the supply compared to the p revious year. It is not only production that increased in 2013, but also the demand increased. Walsh reports that, in the year 2013, the demand for oil rose by 390,000 barrels per day in the United States.The article notes that, the big rise in the demand for oil in 2013, made the demand of oil rise higher than that of China in that year which rose by 295,000 bbd. This implied that, not only USA producing more oil, but it was consuming more of the oil.The increasing demand for oil could be a symbol of better performance of the economy. This would indicate a better performance of the United State economy which had recorded decrease in oil consumption in the 4 previous years following the 2008 financial crises. The graph below shows the demand curve for oil in United States in the recent years according to the article.71437511303017240251870710762000188023500109537580010DailyDemandofOil28194001263653667125692151980 2008 2012 2013 YearsEconomic growth usually go hand in hand with the demand for more energy (Shealy Dorian, 2007). Thus a direct relationship exist between economic growth and demand of oil.150495043751515049502533015001647824222885EnergyDemandEconomic growthEconomic growth would mean that more people would be involved in businesses, while many more would drive to work increasing oil consumption. The unexpected increase in demand for oil would suggest that the Unites State Economy is recovering from its previous worst performance. Luckily, as the economy rebounds, more oil is being produced to cover up the extra required oil.Walsh (2014) says that, "But even if the U.S. economy does reboundà ¢Ã¢â€š ¬and boom times in the petrochemical industryÂdonà ¢Ã¢â€š ¬t necessarily translateÂto the rest of...