The article I read recently is about a topic that has caught my attention. It is called "Shale Oil Boom Takes Hold on the Plains" by David LaGesse of National Geographic (http://news.nationalgeographic.com/news/energy/2011/09/110928-shale-oil-boom-colorado-great-plains). The article talks about the recent discovery of a new oil drilling technique that makes it economical to drill and extract oil here in the U.S. Experts have always know about the vast amounts of oils located here in our own country, such as the Bakken fields in North Dakota, but the problem has been that it is too costly to extract. However, in recent months, a new technique to drill and extract crude oil, which has been adopted from the same technique to extract natural gas, is being used to extract crude oil. The technique, called fracking, makes more sense in the crude oil market than the natural gas market because the demand and price for oil has remained high whereas the same can not be said for natural gas. This recent discovery has changed the market for crude oil completely. The course text book explains that "...a seller that uses a technology with a lower variable cost will lower its average, average variable, and marginal cost curves" (pg. 89). One of the main reasons why more oil is not produced in the U.S. is the cost to drill and extract, but with improved technology, the costs to oil-drilling companies is significantly lower and more profitable. The text book also explains, "...a change in the price of any input will cause a shift of the entire market supply curve" (pg.102). The article is the perfect example of this economic principle. The article explains that "...oil production in the U.S. portion of the Bakken went from 3,000 barrels a day in 2005 to about 400,000 now". The improved technology has made it cheaper for firms to drill and recover more oil and increase the quantity they supply at a cheaper price, which (should) mean cheaper prices for us at the gas pumps. Drill, baby, drill!