Answer to Question #323073 in Political Science for SKYY

Question

How the absent of a free flow of oil would materialise and affect the US economy

Answer 1

Oil is one of the leading drivers of consumption and a leading indicator of economic growth. we run out of oil, and there is no satisfactory alternatives, it could lead to a decline in economic growth and living standards as we spend a higher % of our income on alternatives. Oil and petrol are also used to manufacture a variety of products such as plastic, tar, engine oil and other products. Acknowledging the many differences among European and other economies, the United States and other resource-based economies like Canada and Australia have enormous potential to thrive on much less oil. The United States cut oil consumption dramatically following oil shocks of the 1970’s most of it came from non-transportation uses.