1. Determine the kind of market structures and competition?
2. Discuss the labor kind of business?
– Over the past decade, the landscape of global oil production has shifted dramatically, driven in
large part by revolutionary new technology that enables the extraction of oil from shale rock
formations. Oil extraction in large swathes of the US countryside—including North Dakota,
Pennsylvania and Texas—jumped dramatically and in 2014, the US surpassed Russia to become
the world’s
leading producer of oil and gas.
However, this spike in US shale drilling, along with various other factors, has led to a glut in
the
global oil supply. As a result, prices had dropped 40%, to less than $45 a barrel by early 2015.
Except for a brief jump to around $60 a barrel later that year, they have stayed low ever since.
Moreover, 2016 got off to an extremely rocky start: In mid-January prices fell below $30 a barrel
for
the first time since 2000.
