How Oil Affects American Consumers, Outline Example

Introduction

1. S. is the world’s second largest consumer of energy (Oster & Swartz, 2010)
2. Oil consumption in the U.S. is almost 3 gallons per capita per day (U.S. Energy Information Administration)

• Rise in oil prices significantly impact U.S. economy (Alden, 2011)

Body 1

1. Rise in oil price results in lower demand for oil by consumers according to laws of supply and demand
2. Demand for gas-guzzling cars such as SUV’s also go down
3. Demand for energy-efficient cars such as hybrid cars go up
4. Demand for public transportation services go up

Body 2

1. Consumers scale back on their spending
   1. Less money left for other things due to higher gas expenses
   2. Consumers take fewer trips for shopping and entertainment
2. Consumers engage in more internet shopping to save on fuel costs

Body 3

1. Purchasing power declines because oil prices also raise the prices of other products
2. Unemployment level may also increase as companies may lay-off due to lower sales and rising costs

Conclusion

1. Oil prices have a reverse relationship with consumer spending and purchasing power
2. Oil prices increase demand for energy efficient products and technologies

References

Alden, W. (2011, May 25). Analyst: Rising Oil Prices ‘Primary Threat’ To U.S. Economy As Libyan Violence Mounts. Retrieved March 13, 2012, from http://www.huffingtonpost.com/2011/03/21/libya-conflict-oil-prices_n_838624.html

Oster, S., & Swartz, S. (2010, July 18). China Tops U.S. in Energy Use. Retrieved March 10, 2012, from http://online.wsj.com/article/SB10001424052748703720504575376712353150310.html

U.S. Energy Information Administration. (n.d.). Demand. Retrieved March 13, 2012, from http://www.eia.gov/pub/oil_gas/petroleum/analysis_publications/oil_market_basics/demand_text.htm