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Effects Of Oil On The American Economy

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Although many professionals negate increasing the domestic production of oil, the benefits of doing so outweigh the negatives. Oil is more than an energy resource, but it is an important political and economic tool that actively shapes countries. Any country must have full control of their interactions with oil as the effects of oil can change the fate of any country. Firstly, the most popular advantage of increasing domestic oil production will come with any increase in domestic production of any good, and that is an uplift for the American economy. Domestic oil production has the ability to drastically improve the American economy by increasing the US’ presence in the oil trade. The US will be able to export more to outlying countries and …show more content…

This is in blaring contrast to the opposition that claims oil production will only create jobs for the high skill labor market, which is obviously false. Oil production does not just deal with one high skill trade, such as the extraction of oil. Oil production can provide low, medium, and high skilled positions to almost anyone in America. There is infrastructure to build and maintain, projects to be lead, and mining processes to be developed and everything in between. The job sector will be booming once a significant increase in domestic oil production occurs. This example of an increase in job security is only relevant if new operations are developed and funded, however, existing domestic ventures could also take advantage of the increased demand for domestic oil. Existing operations will have the need and rewards to expand, requiring the employment of again, more low, medium, and high skilled workers to help with the growing demand. The unemployment rate of America has stayed stagnant at 4.9% in the past month, and has not hit anywhere near close to pre-recession rates (Ferreira.) This makes job security an inherent problem that needs to be fixed as soon as possible. As competing countries grow at exploding rates, the US could not afford to be left in the dust due to an under saturation of resources in the job market. Every willing individual should be able to contribute to the growth of their country, and should not be limited or scared to find work, nor should they have trouble finding work. Increased domestic oil production has the potential to solve all these problems, as the sector encompasses a large area of accessibility both relating to skill, as well as job location, as oil production is a nationwide activity. However, opponents of increasing domestic oil production say that none of these benefits produce any formidable affect, and in fact could be

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Another misconception is that all of the oil the United States produces, now and in the future, is mostly exported. The truth is, “The United States consumes the vast majority of its refined products The claim that ‘much of this oil is for export’ is actually contrary to the facts, market analysis and what actual refiners and customers of Keystone XL have said. The fact is the U.S. consumes the vast majority of all the refined products it produces. In 2012, only about 9% of U.S. refined on-road motor fuel was exported – the other 91 per cent was consumed in the United States first.”

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This 470,000 barrels of oil a day could be refined locally increasing jobs and income at the local scale. According to Energy Transfer The Dakota Access, LLC (commonly referred to as “DAPL” or “Dakota Access”) is a company of Energy Transfer Partners formed to safely and reliably transport American crude oil from the Bakken/Three Forks sites in North Dakota to markets and refineries located in the Midwest, East Coast and Gulf Coast regions of the United States. The local economy in North Dakota will not benefit from their oil being transported to large refineries across the U.S. Then, once moved the oil is refined and sold by large oil companies like DAPL in and out of the U.S. This means the pipeline will support large industry and steal resources of high value from the local

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Along with creating new jobs, the Dakota Pipeline transports crude oil. We should continue construction of the Dakota Pipeline is to increase production of crude oil. Our country uses more crude oil than any other country. We need to bring our production of crude oil higher than our consuming rate. If we continue to use more crude oil than make it, our country will depend more and more on foreign oil when we should be relying on ourselves.

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There are two sides to this argument just like anything else, but there are quite a few more positives to stopping the imports and focus on drilling and refining oil right here in America. First it will supply more jobs for American citizens looking for opportunity and income. Second it would make the price per oil barrel lower in the United States because we would determine its price and wouldn't have to worry about making profit margins. Now just because there are many positives to keeping production in the nation doesn't mean there aren't any for imports/exports. Both help move money around the world in theory stabilizing the economy and generating profit for various countries.

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