Crude Oil Questions Essay - 1100 Words

Crude Oil Questions (Essay Sample) Content: Crude oil1. For each year, calculate how much the US economy spent on crude oil as a percentage of GDP. Then have a look at the year to year change for each period, 1978-1982 and 2004-2009. (12 points)ANSWER:Years Price per barrel cost(billion) GDP (billion) PercentageOf GDP 1978 $9.05 49.54 6420.288 1.8123% 1979 $11.7 64.05 6503.874 1% 1980 $21.52 117.82 6501.184 1.8123% 1981 $31.68 173.44 6585.127 2.63% 1982 $28.12S 153.95 6493.128 2.37% Source: ST. Louis Federal Reserve BankSpending on crude oil in 1978,15 million barrels per day *365 days a year = 5475 million barrels per year5475 MBPY* $9.05 per barrel / 1000 = (49.54 billion)49.54 billion / 6420.288 billion = (0.77% of GDP for 1978)Spending on crude oil in 1979,15 million barrels per day *365 days a year = 5475 million barrels per year5475 Mbpy* $11.7 per barrel/1000 = (64.05 billion)64.05 billion / 6503.874 billion = (1%)Spending on crude oil for 1980,15 million barrels per day *365 days in a year =( 5475 milli on barrels per year)5475 Mbpy* $21.52 per barrel/1000 = (117.82 billion)117.82 billion / 6501.184 billion = (1.8123%)Spending on crude oil for 198115 million barrels per day *365 days in a year = 5475 million barrels per year5475 Mbpy* $31.68 per barrel/1000 = (173.44 billion)173.44 billion / 6585.127 billion = (2.63% of the GDP)Spending on crude oil for 198215 million barrels per day *365 days in a year = 5475 million barrels per year5475 Mbpy* $28.12 per barrel / 1000 = (153.95 billion)153.95 billion / 6493.128 billion = (2.37% of the GDP)Now from 2004 to 2009years Price per barrel cost(billion) GDP(billion) Percentage of GDP 2004 $37 212.02 13950.376 1.5198% 2005 $50 286.52 14373.438 2% 2006 $60 343.83 14716.930 2.33% 2007 $68 389.67 14991.784 2.599% 2008 $95 544.39 14576.985 3.73% 2009 $62 355.29 14541.901 2.44% Source: ST. Louis Federal Reserve BankSpending on crude oil in 2004:15.7 million Barrels per day* 365 days in a year = 5730.5 million barrels per year5730.5 Mbpy * $37 p er barrel/1000 = (212.02 billion)212.02 billion/ 13950.376 billion*100 = (1.5198% of GDP for 2004)Spending on crude oil in 2005:15.7 million Barrels per day*365 days in a year = 5730.5 million barrels per year5730.5 Mbpy * $50 per barrels /1000 = (286.52 billion)286.52 billion/ 14373.438 billion*100 = (2% of GDP for 2005)Spending on crude oil in 200615.7 million Barrels per day * 365 days in a year = 5730.5 million barrels per year5730.5 Mbpy * $60 per barrel / 1000 = (343.83 billion)343.83 billion/ 14716.930 billion*100 = (2.33% of the GDP)Spending on crude oil in 200715.7 million Barrels per day*365 days in a year = 5730.5 million barrels per year5730.5 Mbpy * $68 per barrel/1000 = (389.67 billion)389.67 billion/ 14991.78...