1. The US Oil Market

2. World Suppliers

3. US Crude Oil Production is rising

4. The North Dakota Oil Boom

5. Canadian Oil Market http://business.financialpost.com/2014/01/08/as-canadian-heavy-crude-prices-strengthen-oil-industry-poised-for-more- profits/?__lsa=70bc-57b7http://business.financialpost.com/2014/01/08/as-canadian-heavy-crude-prices-strengthen-oil-industry-poised-for-more- profits/?__lsa=70bc-57b7 Today Western Canada Select is enjoying a sudden bump. The key Canadian oil blend is trading at its highest level in five months as export jams clear, new refinery demand comes online and frigid weather contributes to production snafus in northern Alberta.

6. Upward Trend in Production of Canadian Crude

7. Overall World Production of Oil http://labs.wnstnsmth.net/worldoil/

8. Petroleum Consumption Growth

10. US Demand versus US Supply

11. China’s Demand for Oil

13. West Texas Intermediate (US market) vs Brent (global)

14. Gas Prices since 2003 http://www.gasbuddy.com/gb_retail_price_chart.aspx

15. Price of Unleaded Gasoline YearJanFebMarAprMayJunJulAugSepOctNovDecAnnu a l 1998 1.1311.0821.0411.0521.0921.0941.0791.0521.0331.0421.0280.986 1999 0.9720.9550.9911.1771.1781.1481.1891.2551.281.2741.2641.298 2000 1.3011.3691.5411.5061.4981.6171.5931.511.5821.5591.5551.489 2001 1.4721.4841.4471.5641.7291.641.4821.4271.5311.3621.2631.131 2002 1.1391.131.2411.4071.4211.4041.4121.4231.4221.4491.4481.394 2003 1.4731.6411.7481.6591.5421.5141.5241.6281.7281.6031.5351.494 2004 1.5921.6721.7661.8332.0092.0411.9391.8981.8912.0292.011.882 2005 1.8231.9182.0652.2832.2162.1762.3162.5062.9272.7852.3432.186 2006 2.3152.312.4012.7572.9472.9172.9992.9852.5892.2722.2412.334 2007 2.2742.2852.5922.863.133.0522.9612.7822.7892.7933.0693.02 2008 3.0473.0333.2583.4413.7644.0654.093.786

16. 1973 versus 2012

17. Oil Prices

18. Finding Equilibrium Price Quantity supplied (QS) $2.30 300 million gallons per day $2.90 340 $3.20 380 $3.50 400 $4.10 500 Price Quantity demanded by all U.S. consumers of gasoline (QD) $4.70 300 million gallons per day $4.10 350 $3.50 400 $2.90 425 $2.30 470

19. Politics and Economics Where will prices go from here? What are the factors that influence the price? How will the supply factors change? How will the demand factors change? http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/08/u-s-oil-exports-have- been-banned-for-40-years-is-it-time-for-that-to-change/

20. Additional Slides

21. Natural Gas Consumption Total natural gas consumption is expected to increase by 2.7 percent in 2008 and by 2.2 percent in 2009

24. Unleaded Gas Price

25. U.S Oil Production Total U.S. marketed natural gas production is expected to increase by 7.8 percent in 2008 and by 3.8 percent in 2009. Strong year- over-year production growth has been led by the development of onshore fields, particularly in Texas and Wyoming, where production increased by 16 and 12 percent, respectively, during the first 6 months of 2008 relative to year-ago levels.