A Convenience for Gas Consumers

Zevion Flowers

Mr. Reuter

Economics A1

1 March 2016

A Convenience for Gas Consumers

Have you ever wondered why gas prices are so cheap? According to news article on CNN, the

Organization of the Petroleum Exporting Countries (OPEC) has had a huge increase in oil

production. In case you don’t know what OPEC is, OPEC is a conglomerate of 13

petroleum-exporting nations. Namely countries  Ecuador, Iran, Algeria, Indonesia, Angola, Iraq,

Kuwait Qatar, Libya,,United Arab Emirates, Saudi Arabia, Nigeria, and Venezuela. OPEC is

instrumental in the global oil market. CNN states that the pumped an average of 9.43 million

barrels of oil per day. Kuwait Supply of oil has been this high since 1972. Shown is a graph of the

mitigation of oil prices in 2015. The time frame of the graph spans from January 1st to

December 1st. At that time the price per barrel each could be as low as $36. Now $29, as written

in the article.

It was written that there has been an 89% growth in oil output since 2008. Now, while this

increase does benefit the consumers in that gasoline prices decline, there’s also a flipside. Written,

oil companies have cut thousands of jobs and costs to stay in the playing field. In addition the

cheap oil prices has caused slow oil production in the U.S. While yes, cheap gas prices are a

boon short term, it isn’t so long term. CNN wrote that due to oversupply oil production is subject to

decrease. Despite this, I personally think that this is a great time for gas consumers. No one likes

to pay exorbitant prices to put gas in their gas tank. To seniors, juniors, and even teachers driving

right now, this is a good time for you! Revel in it.

Works Cited

The U.S. Pumped an Average of 9.43 Million Barrels per Day Last Year. "What Crash? U.S. Oil Output Rises to 43-year High." CNNMoney. Cable News Network, 1 Mar. 2016. Web. 02 Mar. 2016.

Wikipedia. Wikimedia Foundation, n.d. Web. 02 Mar. 2016.