Energy Sector 2 Revised

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Boom in the U.S Oil Supply Author Name Institutional Affiliation Boom in the U.S Oil Supply Summary The oil sector seems to have endured the tumultuous episode experienced in the market recently. Private oil companies have employed technology to help unlock oil in previously unexplored areas contributing to the resilience. Their efforts have received a boost from the acquisition of the necessary financial backing. Consequently, there has been an increase in the US oil production as well as the export margins. Moreover, natural gas has emerged as a new front giving the country impetus in the energy sector (Krauss, 2018). The government is aiding these efforts by increasing offshore drilling and loosening bottlenecks regarding restrictive regulations. As a net result, the dominance of Saudi Arabia and Russia as oil and natural gas leading suppliers has encountered stiff competition. Explanation The market force under scrutiny in this article is supply. That is the supply of oil to the global market from the U. S. and its key competitors, such as Saudi Arabia and Russia. Comparatively, as the quantity of oil supply from the U.S. continues to grow, the quantity of oil supply from its competitors continues to slump down. Meaning, for the U.S., the supply curve shifts outwards indicating a growing trend. However, for its rivals, the supply curve shifts inwards, indicating a shrinking trend. This change happens due to two factors. One is the increase in oil prices, which translates into an increase in the cost production, and two is the technological improvement. Unlike other oil-producing countries, U.S seems to have the best production technologies, increasing its

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