Stevens, Pippa. “Oil Now a ‘Bigger Problem for Markets than the Coronavirus,’ Analyst Says.” CNBC, CNBC, 8 Mar. 2020, www.cnbc.com/2020/03/08/oil-a-bigger-problem-for-markets-than-the-coronavirus-after-opec-deal-collapse.html.
Oil prices have been dropping significantly due to failure to reach an agreement on production cuts, which brings up concerns on its impact on the “broader economy.” This is because the U.S. economy relies on oil. Many people would be left unemployed without the industry and “highly leveraged oil and gas companies are key to the fixed income market.” Prices for crude oil have dropped over 30% ever since the coronavirus outbreak. The failed agreement means that starting in April (when the current agreement ends), countries have “free rein over how much crude it pumps.”
This relates to environmental science because it brings up an important topic: the U.S. economy’s reliance on crude oil. Crude oil is a nonrenewable resource and because OPEC failed to reach an agreement, nations will be pumping crude oil without enforced regulation starting in April. This is not good for the environment, not only because we are going through petroleum faster than it can renew, but because our reliance on crude oil means consistent burning of fossil fuels. As we have been learning in class all year, burning fossil fuels pollutes the air and fills the atmosphere with greenhouse gases.
The US has already refilled its reserves due to the extreme price cuts. At this point, it is cheaper to buy a barrel of oil than an equal volume of milk which is CRAZY! what long term effects on electric vehicle use do you see this having?
I agree it’s strange. I honestly didn’t even think about long term effects on electric vehicle use — but I’d assume that cheaper gas prices would discourage people from investing in an electric vehicle.