Economics Roundtable Oil in West Texas

Nathaniel Samuels
Mr. Roddy
IHSS
30/1/2019
Economics Roundtable

The article I read talked about the change in the oil business and more specifically recent expansion plans to places near Beaumont and other areas in west Texas. This article is in the mists of the news with Venezuela one of the lead producers of light crude oil. Many companies including Exxon-Mobil and chevron are making large renovations to keep up with light oil demand. Chevron has a 112,000 barrels per day expansion plan as well as thinking about buying its first refinery. Exxon has a $20 billion plan to expand including new facilities transports and acquiring a new company “Motiva”.
These changes come in the mists of many big international events in the economy. Two of these are the sanctions on Venezuela and the trade war with china. In regards to the oil industry the sanctions will be more important as Venezuela is a large producer of oil.  The 2 plans in west Texas plan on relieving the lost production. When complete they will bring a lot of production into the US including jobs and cheaper oil due to lack of import tax. This also is a sign of the two biggest oil companies getting bigger and expanding into other companies. This can change oil prices and make it cheaper to drive. It can also lead to more emissions as with more drivers and refineries using fossil fuels and releasing CO2. With cheaper oil  prices making it cheaper to drive and people will be more likely to buy a car helping the economy more.  Aside from these issues there will be a direct help to the economy from the increased light oil. With more drivers people have more time and get to their jobs more easily. This lets them make more money working slightly longer. This money goes straight  back into the economy helping even more. These changes in the oil business to us more specifically as not only are they happening in Texas but oil is a large product for Texas and will boost the Texan economy.
Douglas, Erin. "Refineries shift for W. Texas oil." Houston Chronicle, 30 Jan.
     2019, Business sec., pp. b2-b5.

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