Naics 2111 Essay

INVESTMENT ANALYSIS

OIL & GAS EXTRACTION: NAICS 2111

By Brock Bontrager

DECEMBER 7th 2013

SYNOPSIS

The following document assess the health of the overall economy and the respective industry. The industry chosen for this assignment is the Oil and Mining Industry, NAICS code 2111. Below is a descriptive set of orders to buy, sell or hold off on investing in the chosen industry.

THE U.S. ECONOMY

BACKGROUND

The economy of the United States is the world's largest single national economy. The United States' nominal GDP was estimated to be $16.6 trillion in June of 2013, approximately a quarter of nominal global GDP. It's GDP at purchasing party parity is also the largest of any single country in the world, approximately a fifth of the global total (Monetary Fund, 2013). The United States has a mixed economy and has maintained a stable overall GDP growth rate, a moderate unemployment rate and high levels of research and capital investment. It's five largest trading partners are Canada, China, Mexico, Japan and Germany. In addition, the US has abundant natural resources, a well-developed infrastructure, and high productivity (Wright, 2011). It has the worlds sixth-highest per capita GDP. The U.S. is the world's third largest producer of oil and second-largest producer of natural gas. It is the second-largest trading nation in the world behind China.

UNEMPLOYMENT RATES

The US economy is currently embroiled in the economic downturn which followed the Financial crisis of 2008, with output still below potential according to the CBO. and unemployment still above historic trends. In November of 2012 the unemployment rate was 7.8%. Whereas of November 2013, the unemployment rate was 7.0%, while the government’s broader U-6 unemployment rate, which includes the part-time underemployed, was 13.1% (Labor Statistics, 2013). With the 203,000 jobs added last year there are more people spending money and helping...