Blog
Giant oil field uncovered - supply and demand
Jim Riley
3rd September 2009
BP has just uncovered a ‘giant’ oil field containing up to 3 billion gallons of crude oil in the Gulf of Mexico which has the potential to double their output in the region to 600,000 barrels a day. This could be an interesting article to use for a supply and demand lesson. Click read more for some questions to go along with it.
1. Using a supply and demand diagram, explain the effect of an increase in the oil supply on the price of crude oil.
2. Explain two other factors that could cause a shift in supply of oil
3. Explain two factors that could cause a shift in demand for oil.