Oil (black gold) has a direct and indirect effect on the U.S. economy, with oil costs influencing the welfare of the economy as a whole. Oil is extremely crucial not only to households and firms contained by the U.S. but also adds to the opinion of U.S. dominance among the other nations in the world. To safeguard the U.S. economy, black gold must thrive. The U.S. is likely to top Saudi Arabia (SAU) and Russia (RUS) on the way to becoming the world\’s leading oil manufacturer in early 2018, based on initial evaluations by the U.S. Energy Information Agency (EIA) Short-Term Energy Outlook (STEO). In mid-winter of 2018, U.S. oil manufacturing surpassed SAU in nearly twenty years. The summer of 2018, the U.S. topped RUS in oil manufacturing for the first time since February 1999. EIA does not publish oil manufacturing predictions representing RUS and SAU available in STEO. EIA anticipates that U.S. oil production will continue to surpass RUS and SAU oil manufacturing for what\’s left of 2018 and through 2019.
(Dunn & Hess 2018)
Demand theory is a theory linking to the correlation involving customer demand for goods and services and their prices. Demand theory formulates the groundwork for the demand curve. Which correlates customer want to the amount of products offered. As additional amounts of goods or services are offered, demand falloffs, and so does the equilibrium price.Demand is the quantity of a good or service that customers are willing and able to buy at a given price in a given period. Individuals demand goods and services in an economy to fulfill their wants, such as food, healthcare, clothing, entertainment, shelter. The demand for a product at a specific price reflects the gratification that an individual expects from utilizing the product. This level of gratification is referred to as utility, and this varies from customer to customer.
All of these actions increase supply.Low oil price creates the opposite set of incentives. Production drops as many firms in the oil industry may declare bankruptcy and projects in development are shut down; this devastates supply. Demand also rises households drive more and focus on efficiency matters less materially because of lower energy costs.In 2017, the international cumulative electric vehicles (E.V) market sales surpassed 2 million units, with the growth continuing to expand in the primary markets of Europe, China, and the U.S.
Moreover, government regulation in these nations to achieve energy conservation targets, climate change, and manufacturing development goals have significantly supported the growth of the E.V market. E.V acceptance is majorly linked with the government incentives that reduce the effective E.V cost. In the U.S. the major urban areas with the highest E.V sales are offering customer incentives stereotypically worth USD 2,000 to 5,000 this is likely to expand the growth of E.V in coming years. Though, after significant expenditures over charging infrastructure, the present charging infrastructure in the U.S. is insufficient for the mass acceptance of E. Vs in the region. Goldstein Research analyst forecast the U.S. E.V market to expand at a Compound annual growth rate (CAGR) of 40.7% during the forecasted interval from 2016-2024. The market is anticipated to reach USD 43.10 billion by the end of the forecast period.