Taking A Road Trip?

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Thought about taking a road trip recently? Well, the time is now; with gas prices significantly lowering it is a perfect time to get out of the state. Especially spring break and Easter around the corner, bonding with family and friend will be a great adventure. Hopefully while you are driving on that road trip you will be thinking why has the oil prices decreased. Major oil producers are concerned about the economic effects of a lengthy slump in crude prices. They are trying their best to come up with different strategies to get the price of oil higher. OPEC known as the Organization of the Petroleum Exporting Countries is one of the largest oil producers in the world. In addition, countries such as Venezuela, Qatar, Saudi Arabia, Iran and …show more content…

In the article, “Oil fallout: U.S. Companies Kill Over 51,000 Jobs” by Matt Egan, states “Since June, American companies have disclosed 51,747 job cuts directly attributed to falling oil prices, according to data provided exclusively to CNNMoney by outplacement firm Challenger, Gray & Christmas, which closely tracks U.S. companies” (1). Due to low oil prices, the oil productions are severely suffering and loosing their business. As in class, I learned this type of unemployment will usually relate to structural unemployment. Structural unemployment results due to the number of jobs available in some labor market is insufficient to provide a job for everyone who wants one. This occurs when the quantity of labor supplied exceeds the quantity demanded. Most of the popular oil industries have already cut their payrolls to save cash but that leaves behind the smaller industries rapidly falling. Many of the employees that will unfortunately be or already are unemployed only have skills that are only required in the oil industry that can not be used in other jobs. Oil productions such as OPEC are suffering because the as the supply of barrels increase the price of oil is decreasing more each month. The decrease in oil prices has negatively impacted oil productions and severely has caused them to cut wages of employees in half or giving them no option to firing them. Now these employees have to actively seek new skills to get a job that has a higher demand in the

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