Environmental Service for Gas and Oil - Essay Example

Demand for oil and gas in the state is high to establish the significance of the commodities and their service to the economy. Demand growth and change in the import are ideal and positive, though importation is low, an indicator that the state relies on its domestic production of oil and gas (Ball State University 9).

If the environmental service for gas and oil stopped, assuming that the oil wells run dry, the state would suffer from adverse effects, both social and economic. These may be worse if the scarcity of crude oil is a global problem. One of the effects of the change would be an increased unemployment rate as people who worked in the mining fields and processing firms would lose their jobs. People who trade in the commodities would also lose income through lost jobs or lost profits. While importation could ease the burden, this would take time and would not be a complete remedy for lost jobs and reduced profitability. Importation would also increase the cost of energy in domestic and industrial setups, leading to a macroeconomic burden. Induced economic strain from lost jobs, reduced income, and a possible rise in commodity prices due to increased fuel costs would spill into people's disposable income. This could have adverse effects on the ability to afford services such as health care and education services. Read More