1) How long do you think it's going to take to get to all virtual cards? How many years? (1 point) Why? (1 point)
In my opinion, I think that it will take atleast another 5 - 10 years before we have all virtual cards in our wallets. It will probably take even longer given identity fraud is one of the most common crimes committed in the new world. Even if we have virtual cards in the next 5-10 years, I don't think anyone will be willing to risk it given its unproven legitimacy.
2) Who will not be on board with this new virtual wallet? (2 points)
The people who will probably not be on board with this change would be older people. Everyone that is considered a techie will be willing to change over if it is completely safe, but the people without the skills to operate computers will not. Even online banking is not used by a majority of the people in the world right now. If the switch were to happen, it will be quite difficult as well to convert everyone over.
3) What companies are going to be affected negatively by this? Name 3 (3 points)
Companies that will be affected negatively will be small businesses, manufacturers and cellphone companies. Small businesses in today's economy are already struggling to stay afloat. With this switch over, this would force them to buy new equipment that is not necessarily needed with already lacking funds. Manufacturers will also suffer. Companies that produce wallets and money clips will go out of business if everyone is going to implement their virtual cards into their phones and ditch the wallet. The last company to be affected would be the cellphone companies. They would have to spend unnecessary dollars in developing new technology for this switch over.
4) Which industries are going to make money from this? Name 3 (3 points)
The biggest winner of this switch over will be retail stores. Customers will be carrying around all of their basically all of their money and may be tempted to spend. The company that created this "virtual wallet" will also benefit since retail stores and companies will be forced to purchase this new technology at a profitable price. Lastly, Banks will also benefit from this because they will no longer need to pay bankers during the day and instead have machine operated computers update statements 24/7.
Thursday, June 2, 2011
Wednesday, June 1, 2011
Canadian Banks Outperform Others on Worldstage
Summary;
On Bloomberg's first-ever ranking of Worldwide banks, Canadian banks claimed 5 of the top 20 spots on the list. The top-rated Canadian bank was The National Bank of Canada at number 3. The other banks that made the top 20 spots include CIBC (4), TD Canada Trust (12), Royal Bank (17) and The Bank of Montreal (19). Taking the top spot was Singapore's Oversea-China Banking Group. In comparison to the United States, only three of their banks made it into the top 20. Placing at number 7 was Fifth Third Bancorp followed by JPMorgan Chase at 14 and Citigroup at 16. The rankings were comprised of banks with at least $100 billion in assets, cash reserves, non-performing assets against total assets. According to Andrew Addison, spokesperson for the Canadian Bankers Association, Canadian banks have been managed carefully through the years. In the world, Canada owns the highest capital ratio of all national banks. Other countries with banks that made it into the top 20 include Switzerland, Hong Kong, Singapore, Brazil, Sweden, Russia and the United Kingdom.
Connections;
In chapter 7, we are studying the Canadian banking system and the value of the Canadian dollar. The value of our money has steadily moved along compared to the stumbling US dollar. A major part of having a strong economy is the banking system. Without one, there could come difficult times. In the bank rankings posted by Bloomberg, Canada had the highest amount of top rated banks in the top 20 with 5. In the US, there were only 3 banks. Strong banking systems stimulate the economy, for example if another country looked to invest internationally they would often look for a country that is strong. Canada would seem like a good investment right now as we have some of the strongest banks in the world. When times are tough however, there could be uncertainty with the dollar like the United States. Their dollar has stumbled along the way because of major bail-outs approved by the government to save large American corporations. It may seem like a good time to invest in the United States at the moment, but there are doubts with their dollar and banking system. With these doubts, people are searching for alternatives like changing their assets into other forms of currency and precious metals.
Reflection;
In my honest opinion, these bank rankings tell us a lot about the economies in the world. Struggling or not, banking is a very important part of any country. With many countries changing some of their assets into other currencies, I believe that they are just decreasing the value of their own assets. For example, China has trillions of dollars in US Federal reserves and are starting to change some of those assets into Euros instead of keeping them in dollars. With China being such a major investor in the United States, this could cause an even deeper downfall for the US dollar. Many other people in different countries could follow in the same footsteps and do the same creating a even weaker economy in the States which could ultimately lead to "ditching" the dollar, predicted by certain economists.
Monday, April 11, 2011
The Great Depression vs. The Current Recession
1) How did the great depression start?
The start of the great depression was directly connected to the collapse of the U.S. stock market in 1929. On Tuesday, October 29, 1929, the U.S. stock markets crashed unexpectedly causing many to call that day “Black Tuesday”. The depression gradually spread worldwide as people were afraid to invest and had many loans to pay off due to careless investments in the roaring 20’s. Bank Failures were also a very big thing during the Great Depression of the 30's. People’s savings were uninsured , thus when banks failed, they lost all of their savings.
2) How did the current recession start?
The current recession started when the United States started giving out sub-prime mortgages carelessly. People were not able to afford their mortgage payments due to rising interest rates. Housing was such a hot commodity in the United States at the time, where people who had no business in buying a house were able to acquire mortgages. Bank's were bringing in clients each and everyday. This was known as the "housing bubble" which eventually popped and exploded all over the bank executive's faces. Now in the present, nearly 4 years after the first signs of our current recession, banks are still foreclosing homes with no buyers in site. All of this eventually lead to a decrease in spending and lack of investments which further lead to a deeper crisis. The rest of the world caught on to the trend. Many people around the world were pulling their investments which caused some countries to eventually file for bankruptcy protection.
3) How did the government take part following the event? Were and are they successful attempts?
Following both the great depression and the current recession, the government stepped in with new employment opportunities for citizens. During the great depression, the government tried to increase employment opportunities as much as they could. During the current recession, the government handed out massive bailouts to large companies to keep them afloat. One thing that helped out during the great depression that we have not seen so far was World War II. This allowed for a large amount of people to be employed and then deployed for war. The attempts in the present day don't seem to be working quite effectively as they first initially thought, but only the future will tell.
4) What factors are present now that were not present during the Great Depression? Ex. Banking, online resources?
One of the most misused items in our present time is the credit card. The credit card can be a very useful tool if used correctly. If not, the person responsible for payments will have to be disciplined. The most common thing would be high interest rates and a hit to your credit score. The internet is also a very resourceful tool in our society. People are able to access records of their investments, spending and many others. They can access trends of the current stock market and research based on data posted online.
5) How did these two affect the United States GDP?
The great depression and current depression are quite similar in many ways, but also very different in many ways. The GDP, during the great depression was especially low because many were unemployed and could barely afford necessities and luxury goods. During our current recession, many people have cut back on spending but are still able to afford some luxury goods because of the wages that we make today compared to the 1930's.
6) Reflections: In your own words, tell me which one has made more of an impact on the world?
As of right now, I would have to say that the Great Depression has made a bigger impact on the world. The depression of the 30's lasted more than 10 years compared to the current recession that has only last 4 years. People in the roaring 20's were so optimistic about the future that they basically put everything on the line to save for the future. Some even took out loans to invest. Our current recession started when the housing bubble burst, with banks and mortgage companies giving out careless loans. People, knowing a bit about the previous depression then pulled out large investments which ultimately led to the failure of many large scare corporations of all kinds around the world. Although it has only been a fraction of the time compared to the great depression, this recession may ultimately have a bigger impact on the world when it's all said and done.
Wednesday, April 6, 2011
Even Afterlife Faces iPad 2 Shortages ***Chapter 6***
***Summary***
Since the release of the iPad 2 on March 11th in the United States and Worldwide on March 25th, inventory has become scarce on the market. The highly anticipated gadget has already sold a whopping 6 million units worldwide. Apple, in the past has already been criticized on not being able to supply enough units for waiting customers. At the international launch, studies show that some people waited in line for more than 2 days. Another bump in the road for the supply may be the earthquake in Japan. iSuppli, a research firm from the United States noted that some parts from the iPad 2 are produced in Japan. Back on track now, during the past week, some Chinese families celebrated the ritual "Ching Ming", which is a celebration and offering for late ancestors. During the offerings, the present living generation would burn imitation money and luxury goods to the afterlife. Chinese villagers in Malaysia scoured stores for replica models of the iPad 2. One store owner says that his store had 300 replica paper models of the highly sought after gadget which sold for $1 each. In the end, his inventory was empty.
***Connections***
In chapter 6, the aggregate demand for the iPad 2 is to have a technically trendy gadget. For the item to have been sold out so fast is not much of a surprise because of Apple's inability to supply enough units for customers worldwide. As for the paper replica models, the people purchasing them believe that it is a fashionablly cool thing to have in the afterlife. The aggregate demand for this is the ability to be able to purchase something for their ancestors.
***Reflections***
Many people celebrated the event "Ching Ming", including myself. Before this article, I did not realize that people went as far as to buying new tech-savy gadgets. When my family celebrates, we burn only neccessities such as money and clothes and have not gone as far as burning new gadgets.
Since the release of the iPad 2 on March 11th in the United States and Worldwide on March 25th, inventory has become scarce on the market. The highly anticipated gadget has already sold a whopping 6 million units worldwide. Apple, in the past has already been criticized on not being able to supply enough units for waiting customers. At the international launch, studies show that some people waited in line for more than 2 days. Another bump in the road for the supply may be the earthquake in Japan. iSuppli, a research firm from the United States noted that some parts from the iPad 2 are produced in Japan. Back on track now, during the past week, some Chinese families celebrated the ritual "Ching Ming", which is a celebration and offering for late ancestors. During the offerings, the present living generation would burn imitation money and luxury goods to the afterlife. Chinese villagers in Malaysia scoured stores for replica models of the iPad 2. One store owner says that his store had 300 replica paper models of the highly sought after gadget which sold for $1 each. In the end, his inventory was empty.
***Connections***
In chapter 6, the aggregate demand for the iPad 2 is to have a technically trendy gadget. For the item to have been sold out so fast is not much of a surprise because of Apple's inability to supply enough units for customers worldwide. As for the paper replica models, the people purchasing them believe that it is a fashionablly cool thing to have in the afterlife. The aggregate demand for this is the ability to be able to purchase something for their ancestors.
***Reflections***
Many people celebrated the event "Ching Ming", including myself. Before this article, I did not realize that people went as far as to buying new tech-savy gadgets. When my family celebrates, we burn only neccessities such as money and clothes and have not gone as far as burning new gadgets.
Monday, April 4, 2011
Wednesday, March 2, 2011
B.C. loses 9,100 jobs in January as rest of Canada recovers ***SUMMARY***
***Summary***
The month of January did not look very good for British Columbia in economic standards. In January, there were 9,100 jobs lost due to the reccession. Also in December, there were 12,800 that were cut from the labour force. Most of Canada has seen a steady economic recovery as B.C. unemployment rises. The 20,000 plus jobs that were lost since December puts British Columbia above all provinces except for the Maritimes. The job losses occured mostly in manufacturing, forestry and construction. For the rest of Canada, there were about 69,000 jobs added to the economy. Still, the unemployment rate increased from 7.6 to 7.8 nationally because of more than 100,000 people looking for work. Ken Peacock, director of the BC Business council says however, these economic indicators are inaccurate compared to other provinces. It actually shows that the BC economy is picking up with retailers and small businesses beginning to hire again.
***Connections***
Chapter 5 of the textbook talks about unemployment and GDP as economic indicators. Many unemployment indicators are not included in the unemployment sample. These criteria include things such as people who have not been actively looking for work in the past 4 weeks and students who have graduated school and have not been able to find a job etc. If you look at the stats, there are alot of people who have given up looking for job in the past 4 weeks because there is nothing out there. Also there are hundreds of thousands of new college graduates who are unable to find a job. As you can see, the unemployment rate is reduced by the actual amount of the unemployed. This is why I think people often oversee the unemployment rate as the main economic indicator.
***Reflections***
The economic indicators put out by the Canadian government are not accurate in my opinion as stated before. While it may seem like the B.C. economy is not stable, I believe that it is. People are still spending as much as they were without jobs. E.I. is also a way for people to get money for the time being while looking for a job. Being paid at 65% of your annual salary is pretty good for doing nothing. This makes the numbers unstable because there is no accurate number of people on employment insurance included in the sample.
The month of January did not look very good for British Columbia in economic standards. In January, there were 9,100 jobs lost due to the reccession. Also in December, there were 12,800 that were cut from the labour force. Most of Canada has seen a steady economic recovery as B.C. unemployment rises. The 20,000 plus jobs that were lost since December puts British Columbia above all provinces except for the Maritimes. The job losses occured mostly in manufacturing, forestry and construction. For the rest of Canada, there were about 69,000 jobs added to the economy. Still, the unemployment rate increased from 7.6 to 7.8 nationally because of more than 100,000 people looking for work. Ken Peacock, director of the BC Business council says however, these economic indicators are inaccurate compared to other provinces. It actually shows that the BC economy is picking up with retailers and small businesses beginning to hire again.
***Connections***
Chapter 5 of the textbook talks about unemployment and GDP as economic indicators. Many unemployment indicators are not included in the unemployment sample. These criteria include things such as people who have not been actively looking for work in the past 4 weeks and students who have graduated school and have not been able to find a job etc. If you look at the stats, there are alot of people who have given up looking for job in the past 4 weeks because there is nothing out there. Also there are hundreds of thousands of new college graduates who are unable to find a job. As you can see, the unemployment rate is reduced by the actual amount of the unemployed. This is why I think people often oversee the unemployment rate as the main economic indicator.
***Reflections***
The economic indicators put out by the Canadian government are not accurate in my opinion as stated before. While it may seem like the B.C. economy is not stable, I believe that it is. People are still spending as much as they were without jobs. E.I. is also a way for people to get money for the time being while looking for a job. Being paid at 65% of your annual salary is pretty good for doing nothing. This makes the numbers unstable because there is no accurate number of people on employment insurance included in the sample.
Thursday, January 20, 2011
Homeowners brace for tax hikes after jump in Property Assessments - Summary***
***Summary***
This article talks about a possible hike in property taxes for some home owners in neighborhoods in Edmonton. As the economy improves, property values are going up but people still struggle to make ends meet in some cases. For some areas in Edmonton, saw increases as much as 32%. Overall, the average property in Edmonton went up by 23%. Although there is such a high increase, some neighboring areas did see a decrease in property value up to 7%. Some residents with houses in the depreciated neighborhoods feel a slight ease as they will most likely pay less than last year, while other property owners with unexpected increased assessments feel the pressure of possibly paying more.
***Connections***
In the textbook, it talks about how the government collects taxes based on property values. A person with an increased property assessment in this case may not care if they do not plan on selling. The only problem with this is that they must pay higher taxes due to their increased property value. The problem that I see with our economy today is that it is still lagging. I say lagging because most people are slow and barely able to meet expectations, when it comes to paying bills. With people still losing jobs, it is harder for a home owner to pay higher taxes. I believe that a person with a warm and cozy home doesn't care for these assessments because it just means higher taxes and a bigger headache.
***Reflections***
This article shows that each and every year, the government usually comes up with a new idea to get more tax money out of citizens. Although it may seem good that your property went up, who really cares? Most people in this economy are not looking to buy anytime soon, so it just means more taxes. Again, this shows how the Canadian government gets most of their money from direct property taxes.
This article talks about a possible hike in property taxes for some home owners in neighborhoods in Edmonton. As the economy improves, property values are going up but people still struggle to make ends meet in some cases. For some areas in Edmonton, saw increases as much as 32%. Overall, the average property in Edmonton went up by 23%. Although there is such a high increase, some neighboring areas did see a decrease in property value up to 7%. Some residents with houses in the depreciated neighborhoods feel a slight ease as they will most likely pay less than last year, while other property owners with unexpected increased assessments feel the pressure of possibly paying more.
***Connections***
In the textbook, it talks about how the government collects taxes based on property values. A person with an increased property assessment in this case may not care if they do not plan on selling. The only problem with this is that they must pay higher taxes due to their increased property value. The problem that I see with our economy today is that it is still lagging. I say lagging because most people are slow and barely able to meet expectations, when it comes to paying bills. With people still losing jobs, it is harder for a home owner to pay higher taxes. I believe that a person with a warm and cozy home doesn't care for these assessments because it just means higher taxes and a bigger headache.
***Reflections***
This article shows that each and every year, the government usually comes up with a new idea to get more tax money out of citizens. Although it may seem good that your property went up, who really cares? Most people in this economy are not looking to buy anytime soon, so it just means more taxes. Again, this shows how the Canadian government gets most of their money from direct property taxes.
Tuesday, October 26, 2010
Travel For The Holidays and Save Money
**Source: http://articles.kwch.com/2010-10-25/fewer-flights_24221623**
***Summary***
As the United States' Thanksgiving Holiday approaches, many are looking to travel across the country to visit family for the Thanksgiving long-weekend. Same thing goes for everyone else as Christmas slowly approaches. With our economy still in a slight recession, Airlines are cutting back costs and putting less seats up for sale. This year however, the demand for flights has gone up 6% compared to the same time last year. On the other hand, like I said earlier, the supply of seats has gone down. There is about 2% fewer seats this year than there were last year. That means there is more demand than supply, meaning you will be probably have to pay more to get what you want. However, CBS Moneywatchers, says you can still travel and avoid paying higher prices for your seats if you act now.
Every year, the American Thanksgiving occurs on the fourth Thursday of November. The day before the holiday is traditionally the busiest travel day of the year. Travel experts suggest that you buy your ticket for the morning of the holiday and make it just in time for the Thanksgiving feast. This may seem like all a rush, but statistics show that it is much cheaper because it is not considered a "peak travel day". With savings, also comes with no need to battle crowds at busy airports. However, if your destination is close by, even consider taking the bus or train. The bus and train may not seem to be very comfortable but things have since changed. Most buses and trains now come with free wi-fi, leather seats and huge snack bars. Some other ways you can save money is to not check in any bags at all and instead use the maximum number of carry-on bags that you are allowed to avoid paying baggage-handling fees. If you have frequent flier's points, consider using them for hotel deals because it may be hard to cash them for airfare during the holiday season. With so many hotels trying to fill their rooms, you are bound to find the best deal for your buck this holiday season.
**Connections**
The concept of Chapter two is supply and demand, and how "elastic" or "inelastic" a product is. In this case, there is a decrease in supply and an increase in demand. With our economy just slowly getting back up from the recession and the holiday season approaching, I think people are looking to visit family and friends that they weren't able to see for the past few years because of strapped pockets. Airlines on the other hand, who also have strapped pockets because of high costs are not willing to take many risks in this economy. The final result is, Airlines are putting out less seats for higher prices. Even though plane tickets have "elastic" prices, there could be an open debate about them being "inelastic". Most seat prices increase at peak seasons but decrease during the regular season, however most people are only able to travel during the "peak season" due to many reasons such as work. It may be the only time for them to get away so whatever the price is, people will still pay. There are also substitutes to air fare such as tour buses and trains. What I'm trying to say is, plane tickets have "elastic" prices but are "inelastic" during the holiday seasons.
**Reflection**
I came upon this article while running a google search in class and found it quite amusing because I, myself will be doing some traveling during this upcoming holiday season. Even when I bought my tickets at the end of Summer, I definitely saw what this article was getting at. I purchased 4 direct WestJet tickets to Los Angeles for about $500 a piece out of YVR. The thing that made it even worst was that my family probably won't even be able to sit together on the flight because about 80% of the flight was already full. I don't really agree with the "Moneywatchers'" though because you can do all those things and still come up empty-handed and with the same ticket price. The one part that their article was missing is international travel because they only cover the points to domestic travel. Overall, I found all the points in this article mentioned to be very useful to the domestic traveller.
***Summary***
As the United States' Thanksgiving Holiday approaches, many are looking to travel across the country to visit family for the Thanksgiving long-weekend. Same thing goes for everyone else as Christmas slowly approaches. With our economy still in a slight recession, Airlines are cutting back costs and putting less seats up for sale. This year however, the demand for flights has gone up 6% compared to the same time last year. On the other hand, like I said earlier, the supply of seats has gone down. There is about 2% fewer seats this year than there were last year. That means there is more demand than supply, meaning you will be probably have to pay more to get what you want. However, CBS Moneywatchers, says you can still travel and avoid paying higher prices for your seats if you act now.
Every year, the American Thanksgiving occurs on the fourth Thursday of November. The day before the holiday is traditionally the busiest travel day of the year. Travel experts suggest that you buy your ticket for the morning of the holiday and make it just in time for the Thanksgiving feast. This may seem like all a rush, but statistics show that it is much cheaper because it is not considered a "peak travel day". With savings, also comes with no need to battle crowds at busy airports. However, if your destination is close by, even consider taking the bus or train. The bus and train may not seem to be very comfortable but things have since changed. Most buses and trains now come with free wi-fi, leather seats and huge snack bars. Some other ways you can save money is to not check in any bags at all and instead use the maximum number of carry-on bags that you are allowed to avoid paying baggage-handling fees. If you have frequent flier's points, consider using them for hotel deals because it may be hard to cash them for airfare during the holiday season. With so many hotels trying to fill their rooms, you are bound to find the best deal for your buck this holiday season.
**Connections**
The concept of Chapter two is supply and demand, and how "elastic" or "inelastic" a product is. In this case, there is a decrease in supply and an increase in demand. With our economy just slowly getting back up from the recession and the holiday season approaching, I think people are looking to visit family and friends that they weren't able to see for the past few years because of strapped pockets. Airlines on the other hand, who also have strapped pockets because of high costs are not willing to take many risks in this economy. The final result is, Airlines are putting out less seats for higher prices. Even though plane tickets have "elastic" prices, there could be an open debate about them being "inelastic". Most seat prices increase at peak seasons but decrease during the regular season, however most people are only able to travel during the "peak season" due to many reasons such as work. It may be the only time for them to get away so whatever the price is, people will still pay. There are also substitutes to air fare such as tour buses and trains. What I'm trying to say is, plane tickets have "elastic" prices but are "inelastic" during the holiday seasons.
**Reflection**
I came upon this article while running a google search in class and found it quite amusing because I, myself will be doing some traveling during this upcoming holiday season. Even when I bought my tickets at the end of Summer, I definitely saw what this article was getting at. I purchased 4 direct WestJet tickets to Los Angeles for about $500 a piece out of YVR. The thing that made it even worst was that my family probably won't even be able to sit together on the flight because about 80% of the flight was already full. I don't really agree with the "Moneywatchers'" though because you can do all those things and still come up empty-handed and with the same ticket price. The one part that their article was missing is international travel because they only cover the points to domestic travel. Overall, I found all the points in this article mentioned to be very useful to the domestic traveller.
Monday, September 20, 2010
Water Demand is Flashpoint in North Dakota Oil Boom
**Source: http://www.circleofblue.org/waternews/2010/world/scarce-water-is-no-limit-yet-to-north-dakota-oil-shale-boom/ **
**Summary**
With a major oil boom looming in the Great Plains of North Dakota, there comes a need for scarce resources. Since 2007, only California, Texas and Alaska has produced more oil than North Dakota. This year alone, they are expected to produce nearly 100-million barrels of oil and 100-billion cubic feet of natural gas. With all of this oil being produced already, scientists have discovered a large piece of producible land known as the "Bakken Shale". Located 10,000 feet below the Earth's surface is the "Bakken Shale", in the heart of Saskatchewan, Montana and North Dakota. In an estimate in 2008, scientists predicted that the "Bakken Shale" contained 4.3 billion barrels of oil. Now a couple of years later, they believe it may even contain more oil than first thought. To drill and fracture the Bakken Shale, workers use a technique known as "fracking" where a drill bit is drilled into the surface and water is pumped in at 8,000 pounts per square inch to break the rock and get the oil flowing. There are hundreds of wells in North Dakota that are capable of producing 4,000 barrels of oil per day. That may sound like a lot of oil but thats also means more water. To produce 1 barrel of conventional oil, it takes an equivalent of 1 barrel of water because the oil can easily be sucked up. To produce 1 barrel of unconventional oil, "fracking" is involved where water is pumped in at high speeds to get the oil to flow. Each year, 5.5 billion barrels of water is needed to produce all the the oil in the "Bakken Shale". With such high demand for water comes a lot of environmental concerns. Lake Sakakawea is one of the largest fresh water lakes in the United States located right in North Dakota. Scientists won't allow withdrawals from the lake because they are testing the full capacity. High demand makes for illegal activity. In February, a man was caught for illegally selling water to the companies in the oil industry. He had acquired a permit to sell 26 million gallons of water but ended up selling more than twice of that amount. In the Bakken Shale, about 70 new wells are produced each month. With water so scarce and in high demand, state officials are considering reusing the fracking water. North Dakota, is now one of the fastest growing states in America. Since the oil boom, they now also own the nation's lowest unemployment rate at 3.6%. According the the State Job Service, more than 7,000 laborers have come to North Dakota for work. In June, North Dakota reported an annual surplus of 800 million dollars.
**Connections**
In chapter 1, the textbook talks about scarcity. So in my article, it talks about how North Dakota is having trouble with their water supply. With a high demand for oil in the world, many people want to get rich. Even if it means harming the environment and its natural resources. To make 1 barrel of oil, it takes an equivalent of 1 or more barrels of water to produce. With global warming and all the fierce climate changes that we are going through, we should consume less oil to help the planet out. Even Canada, with one of the world biggest fresh water supplies is struggling to keep its water. In the very near future when water is a very hot commodity, people will finally realize the impact that was made for consuming so many things and taking it for granted.
**Reflection**
Before I read this article, I had never thought about how much water it took to produce oil. I always thought that you dug into the earth's surface and sucked it out with a giant tube. I usually walk to school most of the time. But Things have changed though, since I got my "N" license, I've never turned down a chance to drive anywhere. Now that I know it takes a lot of water to produce oil and gas, I will most likely think twice about driving. Water is a very scarce resource in our world, although it may never seem so. We need water for many things in life, drinking and harvesting are a just a few. In the future, I think there will be a lot of problems with the water supply. We will also probably think about the times we had wasted water in the past and wish we did differently.
**Summary**
With a major oil boom looming in the Great Plains of North Dakota, there comes a need for scarce resources. Since 2007, only California, Texas and Alaska has produced more oil than North Dakota. This year alone, they are expected to produce nearly 100-million barrels of oil and 100-billion cubic feet of natural gas. With all of this oil being produced already, scientists have discovered a large piece of producible land known as the "Bakken Shale". Located 10,000 feet below the Earth's surface is the "Bakken Shale", in the heart of Saskatchewan, Montana and North Dakota. In an estimate in 2008, scientists predicted that the "Bakken Shale" contained 4.3 billion barrels of oil. Now a couple of years later, they believe it may even contain more oil than first thought. To drill and fracture the Bakken Shale, workers use a technique known as "fracking" where a drill bit is drilled into the surface and water is pumped in at 8,000 pounts per square inch to break the rock and get the oil flowing. There are hundreds of wells in North Dakota that are capable of producing 4,000 barrels of oil per day. That may sound like a lot of oil but thats also means more water. To produce 1 barrel of conventional oil, it takes an equivalent of 1 barrel of water because the oil can easily be sucked up. To produce 1 barrel of unconventional oil, "fracking" is involved where water is pumped in at high speeds to get the oil to flow. Each year, 5.5 billion barrels of water is needed to produce all the the oil in the "Bakken Shale". With such high demand for water comes a lot of environmental concerns. Lake Sakakawea is one of the largest fresh water lakes in the United States located right in North Dakota. Scientists won't allow withdrawals from the lake because they are testing the full capacity. High demand makes for illegal activity. In February, a man was caught for illegally selling water to the companies in the oil industry. He had acquired a permit to sell 26 million gallons of water but ended up selling more than twice of that amount. In the Bakken Shale, about 70 new wells are produced each month. With water so scarce and in high demand, state officials are considering reusing the fracking water. North Dakota, is now one of the fastest growing states in America. Since the oil boom, they now also own the nation's lowest unemployment rate at 3.6%. According the the State Job Service, more than 7,000 laborers have come to North Dakota for work. In June, North Dakota reported an annual surplus of 800 million dollars.
**Connections**
In chapter 1, the textbook talks about scarcity. So in my article, it talks about how North Dakota is having trouble with their water supply. With a high demand for oil in the world, many people want to get rich. Even if it means harming the environment and its natural resources. To make 1 barrel of oil, it takes an equivalent of 1 or more barrels of water to produce. With global warming and all the fierce climate changes that we are going through, we should consume less oil to help the planet out. Even Canada, with one of the world biggest fresh water supplies is struggling to keep its water. In the very near future when water is a very hot commodity, people will finally realize the impact that was made for consuming so many things and taking it for granted.
**Reflection**
Before I read this article, I had never thought about how much water it took to produce oil. I always thought that you dug into the earth's surface and sucked it out with a giant tube. I usually walk to school most of the time. But Things have changed though, since I got my "N" license, I've never turned down a chance to drive anywhere. Now that I know it takes a lot of water to produce oil and gas, I will most likely think twice about driving. Water is a very scarce resource in our world, although it may never seem so. We need water for many things in life, drinking and harvesting are a just a few. In the future, I think there will be a lot of problems with the water supply. We will also probably think about the times we had wasted water in the past and wish we did differently.
Friday, September 17, 2010
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