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Homework answers / question archive / Prompt In 2020, oil prices declined by 60% from January through April due to a combination of lower demand and increased output from other countries
In 2020, oil prices declined by 60% from January through April due to a combination of lower demand and increased output from other countries. The price decline has been detrimental to the US oil industry. Domestic production cuts in response to low prices are expected to cause the US to revert to being a net oil importer (Links to an external site.) after briefly (since September 2019) being a net exporter for the first time in several decades.
There is some interest (Links to an external site.) in a US federal government response to aid the industry during the coronavirus pandemic and associated economic crisis. Options include reduced regulation, loans, or even price support policies. Some proponents claim it is important to help the domestic industry survive because it is vital for the economies of several states (e.g., Texas), and because domestic production reduces reliance on imported oil. While such policies may help the industry and those employed in it cope with the current period of very low prices and oversupply, critics argue that higher prices may hurt consumers, and any incentive to use more oil will contribute to climate change.
Where do you stand? Briefly, state whether you are generally in favor or opposed to government assistance for the US oil industry during the coronavirus-related economic crisis. Explain your reasoning.
Important: this is a significant current issue, for which there are opposing reasoned points of view. Please be respectful of your peers, even if you disagree with them.
With the Coronavirus creating a decline in oil prices due to lower demand an increased output from other countries, it is very evident the US's oil industry is really hurting. They have to produce oil at much lower prices to even compete with imported oil, but at these low prices all the oil companies are not breaking even, and people are losing jobs. However, in my opinion, I believe the government should aid all these oil companies a little bit. If the government helped out, less oil will have to be imported, but also, jobs can be kept and oil prices will go up. With the increase in oil prices, and people already being worried about going out and getting sick, even less people will go out and drive than they are right now. This will help with the pollution many are worried about as well as keep the US economy going.
