Description: While some are divesting in oil stocks (see this week’s post on the Caisse’s divestment plans), the Bank of America is predicting oil prices will soar above $100 a barrel for the first time since 2014. Demand for the substance is expected to rise in the face of higher numbers of air travelers, oncoming winter temperatures, and a switch from natural gas to oil in the face of rising gas prices. The price rise may bring more unpleasant impacts to an economy already suffering under the weight of the pandemic.
Date: September 23, 2021
1) Does a prediction of rising oil prices surprise you, given the sluggish Covid economy?
2) If oil prices do rise, will this impact your student finances?
3) In Chapter 9 of Wiley’s Financial Accounting: Tools for Business Decision Making teaches us about reporting and analyzing long-lived assets. For an in-class activity, track down the recent financial statments of an oil and gas company. Determine what are the major long-lived assets on the balance sheet.