Why Cheap Oil Is Bad for the U.S. Economy

The video discusses the challenges faced by OPEC, including internal cheating and diminishing power due to increased US oil productivity. It highlights the impact of new oil supplies and the liberalization of Mexico's energy economy. The discussion also covers the economic implications of lower oil prices, such as increased disposable income and potential job losses in the shale industry. The video concludes with an analysis of market dynamics and the potential dissolution of OPEC.

What is one of the main challenges OPEC faces according to the discussion?

• Increasing demand for oil

• Internal cheating among members

• Lack of new oil supplies

• Strong cooperation among members

How has the productivity of new wells in the Bakken region changed?

• Decreased by 100 barrels per day

• Increased by 100 barrels per day

• Remained the same

• Increased by 50 barrels per day

What role has Saudi Arabia traditionally played within OPEC?

• A non-member observer

• A minor producer

• A consumer of oil

• The swing producer with excess capacity

What is one potential benefit of lower oil prices mentioned in the discussion?

• Higher unemployment rates

• Increased disposable income

• Decreased disposable income

• Lower economic growth

What economic impact does the decline in oil prices have on the shale industry?

• Increased employment

• Negative impact on employment

• Positive impact on employment

• No impact on employment