Oil Prices and the U.S. Economy

Paper Summary:

This paper examines the impact of oil prices and the economic effects that occur directly following rising oil prices. The paper suggests that tapping large oil resources in Canada will help decrease the cost of crude oil but warns that the voracious appetite of the Chinese economy for fuel may not yet have peaked. The paper points out that regardless of the direction of oil prices it is clear that the United States is in the unenviable position of being forced to find an alternative fuel source for the future. In conclusion, the paper shows that as the leader of the global economy, American will bear the bulk of the costs associated with this effort but will hopefully reap the majority of the rewards and until that time, oil prices will continue to have a significant impact on the US economy.

Outline:
Rising Oil Prices Hurt the Consumer in a Number of Ways
The Resilient American Economy
Peaked or Transitioning Higher

From the Paper:

"Just four years later, Huber's article seems less accurate than it might have been viewed at the time it was written and yet, many of the indications presented in the article can be reasonably said to have survived the economic tumult that rising oil prices have caused in the US. It is, however, difficult to assess how much of an impact the price of oil is responsible for causing to various aspects of the economy. To be sure, oil price has a measurable impact, but at what point does the terrorist attack of 2001, the corporate scandals of 2002 and the Iraq war of 2003 become simply economic footnotes rather than an influencing factor on the buying power of the American public. After all, the price of oil does not exist in an economic vacuum and yet there are some indicators that can be tied directly to the price of oil."

Sample of Sources Used:

• Cooper, James C. and Madigan, Kathleen "How Costly Oil Will Test the Economy." Business Week 8 Nov. 2004: 3907
• Englund, Michael "Why Oil Didn't Ignite an Economic Inferno." Business Week Online 16 Nov.2004
• Hoxter, Curtis I. "Greenspan dismisses comparisons with 70s oil shock." Caribbean Business 28 Oct. 2004: 32
• Huber, Peter "Oil, Money and Pollution." Forbes 15 May 2000: 165
• Pachetti, Nick "Rising prices, an unstable world--what every investor needs to know about...OIL." Money Dec. 2004: 33

More papers on Oil Prices and the U.S. Economy:

• Analytical Essay # 61104 : "Oil Prices and the U.S. Economy"
• Research Paper # 103343 : "Iraq War and the U.S. Economy"
• Cause and Effect Essay # 140358 : "Oil Price Increases on the U.S. Economy"

APA Citation:

MLA Citation: