New technology has allowed oil to be pumped. from much deeper offshore oil fields than before. For example, 28 deep-ocean rigs operate in the deep waters of the Gulf of Mexico

a. What effect do you think deep-ocean sources have had on the world oil price?

b. Who will benefit from drilling for oil in the Gulf of Mexico? Explain your answer. 24. Water is a natural resource that is plentiful in Canada but not plentiful in Arizona.

a. If Canadians start to export bulk water to Arizona, what do you predict will be the effect on the price of bulk water?

b. Will Canada eventually run out of water?

c. Do you think the Hotelling Principle applies to Canada's water? Explain why or why not.