09 Jul Using the supply-and-demand model, explain how Pickens’ plan would affect the global price of oil if it were to be successfully implemented
Question Description
(2a) Oilman T. Boone Pickens has proposed a plan to build wind farms in the center of the United States to produce about 20 percent of the electricity consumed in the United States. This would replace that same percentage of electricity currently produced by natural gas. The natural gas saved would be used to replace gasoline to run cars and light trucks. According to Pickens, oil imports could be reduced by one-third. The United States currently uses about 25 percent of global oil production.
In this week’s Discussion area, examine the following:
Using the supply-and-demand model, explain how Pickens’ plan would affect the global price of oil if it were to be successfully implemented. Feel free to further research this plan and other alternative energy plans.
Watch the video: Supply and Demand (Links to an external site.)
Website:
(3a) Visit the Environmental Working Group’s Farm Subsidy Database (Links to an external site.)
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