Negative Effects of COVID-19 on the U.S. Oil Industry: How can Demand-Side Policies Help?

Payne Institute student Chuxuan Sun writes about how the COVID-19 pandemic is taking a heavy toll on the oil and gas industry. This paper presents the negative effects of the pandemic on oil supply and demand, and argues that to mitigate those effects on the oil industry, a macroeconomic approach should be taken. The paper also argues that the supply shocks are unique Keynesian supply shocks: it induces a larger change in aggregate demand than the supply shocks of oil themselves. June 18, 2021.