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Result of improved oil extraction technologies

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Oil production in the United States has increased significantly over the past decade as a result of improved oil extraction technologies, with some analysts predicting that the United States will surpass Saudi Arabia in overall energy production by the end of the decade ("U.S. Oil Output to Overtake Saudi Arabia's by 2020," Bloomberg.com, November 12, 2012). How do the increase in U.S. energy production and the subsequent reduction in the reliance on imported oil affect the U.S. aggregate demand and/or aggregate supply curves? Do you see this situation as positive or a negative or a blend of both? Explain your point of view.

Reference no: EM131222784

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