American Oil

 http://www.nytimes.com/2014/10/18/business/energy-environment/us-oil-boom-shows-no-signs-of-slowing-down.html?hp&action=click&pgtype=Homepage&version=HpSum&module=first-column-region&region=top-news&WT.nav=top-news&_r=1

Even after the falling gas and oil prices, oil experts are saying the American energy explosion is not going to slow down. To even moderately slow this process down, the price of a barrel of oil would have to decline $10 to $20 more. Lower oil prices also means lower gas prices. The national gas price has gone down 10 cents in the last week and 22 cents in the last year. The problem is, states like Texas, Alaska, Oklahoma, and North Dakota that produced oil are having their finances being cut into. This is because taxes and royalties are declining. As long as this keeps happening, the Organization of the Petroleum Exporting Countries will put pressure on these state to cut output to support these prices.

This article relates to our class in a couple of ways. It discusses the role oil plays in the economy. It also talks about the tax decline and how it affects oil-producing states. Lastly, the government requires a certain amount of money producers pay them in taxes and royalties.