Hydraulic Fracking Effects

Abstract

Early in the past century, oil has powered and has had negative effects on the United States and world economy. Towards the end of the 20th century, as economies relied more on oil powered means for their everyday need, their need for oil has considerably increased and this put an upward pressure on the global oil demand. The disparity between supply and demand has had different effects on economies. For example, high supply leads to low cost, and low supply leads to high cost. On the other hand, high demand leads to high cost and low supply leads to low cost. It’s just a repetition of events. OPEC and ISIS are trying to get the fracking (or hydraulic fracturing, is the process of extracting natural gas from shale rock layers deep

We have interviewed, read books, gone to websites, and even have first person eyewitnesses on how these oil prices have changed over the years. So first of all, going back to our background research, what is oil? Scientists propose that oil is a fossil fuel - importance it is made out of dead plants and creatures that existed countless years back. But how do we use dead plants and creatures to fuel our cars? Scientists created a process that we know as refining. This refines(to purify) the oil, and many useful materials come out of it, such as gasoline and kerosene. The more you refine the crude oil, you get things like jet

This has a large impact on the overall United States economy, and even the economy of the world. As mentioned earlier, OPEC and ISIS has taken complete control of oil over the past six months, to push the fracking industry out of business. If OPEC and ISIS keep doing this, we may see prices at $15 a barrel!!This may be good financially for families temporarily,but in the long run, after the fracking industry is out of business, we may see oil prices at $5-$6. This would hurt the economy substantially. Because oil prices are so high, it would push trucking industries and large businesses that rely on oil/gas out of business. When we interviewed people, they said that they each know at least one person who has gotten cut from Exxon or Chevron. Why is that? Low oil prices are providing gas stations with less profit.Because of this, Exxon is not making enough profit to pay the workers, so just because low gas prices are good for families, it isn’t good for the overall economy. And again, as soon as OPEC and ISIS pushes the fracking industry out of business, oil prices will keep plummeting. Until then, lets hope that prices will return back to normal and OPEC and ISIS does not control the oil industry negatively. As far as our concern however, our families will enjoy low oil