Crude Oil Situation More Optimistic

http://online.wsj.com/article/SB10001424052748704206804575467272980323924.html?mod=WSJ_Energy_leftHeadlines

This article from the Wall Street Journal explains how the prices for crude-oil has increased, and what this means for the off-shore drilling market in the U.S. Due to globalization and communication with other nations, the United States became more and more tangled in deals for oil in the past. As it became apparent that the U.S. was becoming too dependent on other nations for the resource, one solution was to focus more on our own drilling for oil, especially around the Gulf of Mexico. Crude-oil became one way to ease the pressure caused by our dependence on foreign oil. Some optimism about crude-oil has been found through data research.



Globalization has increased our communication with other nations. As the world became a smaller place, the U.S. struck deals for oil. Through globalization, our country has gained access to oil , making it a staple natural resource for the country. So important in fact, that it is now ruling our foreign relations. Our attachment to oil markets has controlled which nations we try to please, and which we can afford to ignore, based on the threat of losing oil through embargos or other means. Globalization changed the face of our energy resources, and now our need for energy is shaping our global outlook. More and more people agree that our foreign relations should not be totally based on our need for oil. Relations between nations in which we trade heavily with for oil may shift and change now and these nations might push us away entirely after we have detached ourselves somewhat from the oil they have. But what solutions are out there to detach ourselves from foreign oil? After the BP oil spill fiasco, opinions have changed heavily as to how the nation should do this. Crude-oil may be becoming more economically sound though, as the article suggests, but how long can off-shoring continue?

- Caitlin McGonnigal