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The article discusses that oil, which was previously too expensive to exploit is what cause the increase in prices. Now, new oil reserves are not only more expensive to develop, but they also take much longer between the time the first well is drilled and when the first oil is produced. This means it takes longer for oil supply to respond to changes in price.In economic terms, the oil supply is becoming less elastic as new oil supplies come increasingly from unconventional oil. These statements are supported by data and charts found within the rest of the article.

I know that oil is important for our daily needs, and I think the oil company knew that too. That why the price of oil is so expensive, and I think it too much. People go to work and then spend their income on oil. If there is plenty of oil as they said we wouldn't have to spend that much money anymore.

this articles about the elasticity of demand and supply concerning the oil industry.

This article talks about how the government is trying to Real GDP of the country by lowering the taxes on exporting oil prices. By doing this the governmnet has enevitably increased the Real GDP because siince the oil firms FOP cost less they can now supply more oil, also the price will rise from 42$ per barrel to 70$ per barrel meaning that the oil firms will even make more of a profit. Again since the taxes have decreased it will cause foreign investments in the oil industry of Argentina since they just discovered that Argentina is setting on one of the biggest oil deposits. so overall, the long term aggregate will shift to the right, an increase in the real GDp

Argentina has devised a new system of export taxes on oil shipments that will cut taxes, as the government seeks to encourage investments to revive production. The change means energy companies will receive $70 per barrel of exported oil, up from $42 previously. Argentina controls the price of oil exports in order to guarantee domestic supply. The reform means that the state will only retain the difference between the market prices, meaning increased revenue for oil companies that export crude. The long run aggregate supply is expected to shift the right, an increase in the real GDP.

A negative externality is a cost incurred by a comapny or a party that did not agree to whatever action caused the extra cost. This article discusses the negative externalities that we incur when we use fossil fuels etc. The cost of production and damage caused by the use of fossil fuels is not included in the price we pay for 1 gallon of gasoline. This is the negative externality. A lot of the government involvement in the private sectors is actually aimed at reducing such negative exteranlities concerned with environmental pollution. Several companies also try to reduce externalities by introducing policies. For example, SAP AG has policies that its employees cannot buy cars that have carbon emissions beyond a certain limit.

Your article is very interesting. In the end the writer talks about the oil spill in the Gulf of Mexico, two weeks ago or something like that I read that BP (they were the owners of the deepwater Horizon) will pay $4.5 billion in fines and other payments, the largest of its kind in US history. It is a lot of money but how can we estimate the value of million animal life's and the destruction of a big part of the Gulf of Mexico. The worst is that we could avoid it because the BP company saved money in the security systems in these Deepwater. I think that after this disaster the government should check all the deepwaters in order to reduce the possibilities of new cases.

A negative externality is an action of a product on consumers that imposes a negative side effect on a third party. Many negative externalities are related to the environmental consequences of production and use. for example the emmisions of green house gases. in this article it explains that when i company creates negative externalities neither the company nor the consumer pays for them so there the government has to step in to stop it by ptting regulations which increases the cost of the comapanies decreasing the negative externalities. but national companies complain because they say if regulations are set they cant compete with international firms like in china where there are no regulations for fuel negative externalities. for example a negative externality was the gulf of mexico oil spill where BP oil prices didnt rise to clean up the mess but the taxes did

In this article the CEO of total says that the increase in oil prices is bad for the consumers all over the world. This increase in prices is because of an increased demand by the society today. However since oil cannot be produced quickly the production rate cannot keep up with the demand rate. Hence there is scarcity and more demand for oil. This increased demand is also the reason why oil prices are skyrocketing today,

This article talks about what should be the equilibrium price for a barrel of oil that benefits both the consumer and producer. The OPEC (Organization of petroleum exporting countries) talk about how high prices help the petroleum organization make investments in renewable fuels, but high priceces would hinder consumers as they now have less to spend on other products. The OPEC also talks about the effects of low prices where it would benefit the consumer but disadvantage the producer investing in renewable fuels. Therefore they have come to the conclusion that the price of a barrel of oil should be between 70-80 Dollars a barrel where bothe the producer and the consumer are happy. Saud Arabia ( the biggest exporter of oil) has agreed to the price of 75 dollars a barrel.

Earlier this week the U.S. Department of Energy announced that the average national price for regular gasoline in the U.S. was now $3.96 a gallon. Last week the Kremlin banned gasoline and diesel exports from Russia to alleviate domestic shortages sending gasoline prices in Germany to a record $9.10 a gallon. Although price increases, people are still going to buy it due to it's elasticity, which is so small. The reason is gasoline is definitely a necesity.

In this article it explains why we, the consumer, are unable to influence gas prices. The article suggests 3 main reasons: 1) for oil companies it is more profitable to set a higher price and then let the price adjust to the demand. Simply, instead of letting the price adjust upwards, the price is set a higher level to let it adjust downwards. 2)The increasing price over the past two years has not created a drop in demand. Rather, the increasing price is accompanied by increasing demand. 3)For countries, the increase of price and demand are signs of prosperity, so a positive thing. This is an example of where it is hard to achiever a price equilibrium.

Pollution from the Motiva refinery in Norco, Louisiana has been a major pollutant in the region since 2005, and it doesn't show signs of stopping. There have been 301 reported cases of accidents in 2011 and many more unreported. The firm may be only concerned with its marginal private costs and have no intention in even dealing with the marginal social costs caused by the negative externality. The government must intervene and cease this crime; the injustice towards its community, society and the environment.

I didn't heard about this case before. I find it ironic because USA with their great judiciary don't have methods to fight with companies like Motiva. We can ask ourselves who is worst a murderer who kills one person and is sentenced to death or a company who is killing hundreds of humans beings. The oil is very important in our live, we need it every day but we must ask as where is the limit? what is more important a human being or using a car? We have to eliminate negative externalities like pollution because if we don't do anything then we will destroy the world because we have infinite wants (this is the sad reality).

This article basically analyzes the positive and negative externalities of the Gulf Oil Spill. It explains pretty clearly the externality concept and brings up some points which are the loss of the production and the gain for the third party as well. Also, the writer states the reason why the spill happened.

This article tells us that the trade deficit (the level of imports exceeds the ones of exports) in the U.S has been a constant issue, however as we can read, the article states that the trade deficit has narrowed more than expected to 43.2 billion instead of 43.5 billion, this is the smallest deficit ever since January 2010, when the deficit was 51.9 billion. One of the factors that have contributed to this change is the great and significant drop in oil imports.

I found this article interesting because it shows us that demand and supply is not the only factor in determining gas prices. As we know, gas prices are on the rise. But this article tells us that it is not just demand and supply that causes this and that we need to take other factors into consideration.

i thought that this article was really interesting because before i actually thought that the oil companies raised the price of oil randomly just to make a profit but now i realise that there are many other reasons why they bring up the price, for example there economy.

This article talks about the change in supply of oil in different regions.

American car sales are declining, which can be at the cause of the falling economic situation in America. They need more people to develop the products and the quality of the car somehow decrease, which cause of the fall of demand. I think it's relate to scarcity because the existing oil on earth is about to run out, so the price of oil rise in recent years. Then more and more people would like to take public transportation instead of car. In a word, the decrease of demand is the main cause of the sales falling of the car. Moreover, I believe Ford should think about why the Europeans are not interested in Ford now? Ford do need to do something for keeping their products stand in the European market.

This article clearly shows the way law of supply and demand works: "The best way to get oil prices down is to let them go up. It's happened many times before. For one reason or another, the demand for an item begins to heat up, driving its price higher." Thus, later people refuse to buy that items, so the prices go down. Also it says about another example of the law of supply and demand - housing. Seven years ago in Kazakhstan one house could cost about 1,000,000$, but then suddenly prices went down till about 400,000$. As they say in article that situations call bubble, when prices tumble just as quickly as they rose - if not faster. So I think, it is a good example for the chapter 2, where you can easily understand the way demand works and how it affects the prices.

Japan's trade deficit increases in October as increase in imports exceed increase in exports to the US and China. Over the past years, weakening yen has helped promote exports, but also increases the cost for imports. The increase in cost for imports, such as crude oil, helped widen trade deficit. This shows the relationship between the current account and the exchange rate. Japan is currently going through a balance trade of goods and services deficit. This results in downward pressure on the exchange rate of the currency as there is an increase in the supply of yen due to increase in imports.

This article focuses on the trade deficit of Japan. Japan's trade deficit nearly doubled in October, as growth in imports outpaced robust increases in exports to the U.S. and China, the Finance Ministry reported Wednesday. There are several factors that led to trade deficit. Firstly, the weakening of the yen over the past year had its significant impact on imports and exports. After meltdown of the nuclear power plant in 2011, Japan has faced loss of the generation capacity, therefore forcing Japan to import natural gas and oil. Overall, weakening in the Japanese yen over the past year has helped exports, but it has also increased the cost of imports.However, the exports are not as stable as they could be. Slowdown in economic growth of China has led to decrease in demand for Japanese exports.Overall the article talks about the details of the trade deficit of Japan.

Price controls on many staple food items ordered by Ethiopia's government early this month have reduced grocery bills for many low-income families. But now shopkeepers are upset and some basic items are disappearing from store shelves. Economists are concerned about the long-term effect of the government's price-fixing strategy. The consumers responded by going to local retail shops on the first day of the new low prices to stock up on much needed basic good. how ever chaos has broken out between shop keepers and consumers as the shelves aare being cleaned of basic and even normal goods. The shopkeepers responded complaining that the weeks of low prices were unbaraible because of consumers being unhappy of even the lowest prices. The Ethiopian government defended it self that the price caps were needed to help the economic crises but 4 independant economist say that it would help the economy recover, but the government ignored them saying it would. Critcs warn that it will only help in the short term and only worsen the economy in the long term.

Price controls on many staple food items ordered by Ethiopia's government early this month have reduced grocery bills for many low-income families. However, shopkeepers are now upset and many basic items are disappearing from store shelves. Economists are concerned about the long-term effect of the government's price-fixing strategy as the price controls have triggered chaos and tension in the local marketplace. 'Ceiling price have been put on items such as meat, bread, rice, sugar, powdered milk and cooking oil due to merchants taking advantage of global price hikes. The consumers have greatly benefitted yet storekeepers are unhappy, some products they bought before the price controls must now be sold below cost. In a free market economy, the preferred way of doing this is to increase the supply and increase competition. The Ethiopian government has been heavily criticized. Despite the upheaval, government officials are hoping their experiment in price-fixing will help to curb inflation. Recently released figures show the inflation rate jumped from 10.2 percent in November to 14.5 percent last month.

This article talk about the supply elasticity and try to answer the question: "Should scarce resources go to those who are willing and able to pay the most for them, or should they go to those who manage to get in line soonest?" It explain us that the mayor part of oil is going to the military use because the priority is to win the war, and civilians are making due with a fixed supply. With the hurricane the good where supply is inelastic is probably hotel rooms because they can build more hotels and rooms it is impossible. The hotels will increase the price because the demand for the hotel room is increasing, as a result there will be a movement along the demand curve. It try to explain that there should be a fixed price for the emergency products because with the huracane the transport is more difficult and the prices rises. That results in an overall more brittle system in which local supplies aren't very resilient to disruptions in transportation.

This article shows how much an economy can be influenced by a certain good , in this case oil, and how the export of this good can lead to economic growth.

This article talk about the price of a gallon of 95 octane will increase 22 cents to $4.54. The price of 91 octane will increase 20 cents to $4.16. Diesel prices will go up 15 cents to $4.08. I´ve found this article and I think that is related to our actual topic aggregate supply because an increase in the price of the natural gas will have an impact on all industries, as oil is widely used in a lot of production processes. This will lead to a shift of the aggregate supply curve because the factors of production will be more expensive and at higher level price the producer will reduce the total amount of goods and services

This article explains how singapores GDP is likely to be revised upwards. Their economy "expanded at a faster pace during the fourth quarter of 2012 than was earlier estimated, helped by higher production of oil rigs and pharmaceuticals in the final weeks of the year". It is likely that it grew 1.2 percent.