In mid-2008, crude oil shocked energy markets as it reached an all-time High of $147/barrel (Bbl.) on the New York Mercantile Exchange. (See Figure 1 below.) Within four months, prices had sunk to $50 per barrel. Then, again in 2014, prices hit a High of about $100/Bbl in June only to fall to under $50/Bbl by December. How could this happen and what were the factors causing this level of price volatility? We will be exploring these questions in Lesson 2.
At the successful completion of this lesson, students should be able to:
- Recognize the various factors impacting supply & demand for natural gas & crude oil
- Research major supply/demand influences
- Global economy
- Domestic economy
- Energy commodity relationships
- Inventory and storage reports
- Assess the potential impact on market pricing for each factor researched
What is due for Lesson 2?
This lesson will take us one week to complete. There are a number of required activities in this module. The chart below provides an overview of the activities for Lesson 2. For assignment details, refer to the location noted.
All assignments will be due Sunday, 11:59 p.m. Eastern Time.
|REQUIREMENT||LOCATION||SUBMITTING YOUR WORK|
|Reading Assignment: Oil & Gas Basics
Video Viewing Assignment: Understanding the Drilling Process
Reading Assignment: Fracturing Operations
|Lesson 2 Reading Assignment page||No submission|
|Lesson 2 Activity: "Fundamental" Factors exercise||Lesson 2 Activity page||Submit through Canvas|
|Lesson 2 Quiz||Summary and Final tasks page||Submit through Canvas|
If you have any questions, please post them to our General Course Questions discussion forum (not e-mail), located under Modules in Canvas. The TA and I will check that discussion forum daily to respond. While you are there, feel free to post your own responses if you, too, are able to help out a classmate.