Summary and Final Tasks

Key Learning Points: Lesson 2

1. In 2008, the record run-up in oil prices actually represented a dynamic shift in the composition of market participants.
2. Crude oil is a globally-traded commodity in a world where the economies of most countries are tightly intertwined.
3. The US is gradually increasing its domestic oil production, thus reducing its crude imports.
4. Natural gas is strictly a domestically traded commodity (until late 2015/early 2016 when we start to export LNG).
5. Vast new reserves of natural gas have been found in “shale” plays due to new technological advances in exploration, drilling, completion, and production.
6. The US is both an importer and exporter of natural gas.
7. Several factors influence the prices of crude oil and natural gas.

Now that we have examined production and consumption in the United States as well as the energy “mix,” we will focus on the fuel sources that comprise over 57% of the energy used in this country. Crude oil, with refined products, and natural gas and related natural gas liquids (NGLs) make-up this large sector.

Reminder - Complete all of the Lesson 2 tasks!

You have reached the end of Lesson 2. Double-check the list of requirements on the first page of this lesson to make sure you have completed all of the activities listed there before beginning the next lesson.