With ABC Oil currently the most profitable corporation in the country,

Question

E-mail from Marketing Manager to Research Staff

With ABC Oil currently the most profitable corporation in the country, followed closely by XYZ Oil, how valid is the image of the United States as dependent on foreign oil? What proportion of American energy needs can be met through domestic production? How do current production levels compare withprevious years? What do we know about trends in demand? And if we must import, how much of that need can be answered by Canada? Positioning the company as an American energy company would be the most positive stance but only if we can support it by showing that our product comes from if not U.S. wells at least North American sources.

Milli19 · Answer

Can some help with The idea of “American” oil companies is archaic because major oil companies are now operating in global industries

Sajjad1994 · Answer

The idea of “American” oil companies is archaic because major oil companies are now operating in global industries.

Explanation

Researcher #2 indicates that even those oil companies identified as American are actually global enterprises, producing oil in various locations and supplying markets around the world.

Answer: Yes

Arpitamitra · Answer

Hi  Sajjad1994 ,

Request if you please make me understand the meaning of the following statement (Statement 3 of Question 1) - "The closing of the gap between U.S. consumption and U.S. production is entirely due to increased domestic production."

Thanks.

Sajjad1994 · Answer

The "closing of gap" refers to the diagram provided in the second tab. The area at which the gap between US consumption and production decreases. See the screenshot below. https://gmatclub.com/forum/download/file.php?id=81762 GMAT-Club-Forum-m00jjldd.jpeg

arjun221199 · Answer

can someone help me understand how is  Archaic  verifiable? nowhere it is given as old fashion and the reason is BECAUSE this.... Please advise

Sajjad1994 · Answer

It can be verified from tab 2, Researcher #2 indicates that even those oil companies identified as American are actually global enterprises, producing oil in various locations and supplying markets around the world.

Akkiiii · Answer

Why is the answer"No" here? it should be yes right? that it is closing because if the production increase GMAT-Club-Forum-69yj2cp1.jpeg

msondhi · Answer

Hi there,

Can anyone help to provide explanation for below question? Where its stated that American oil companies idea is archaic?

The idea of “American” oil companies is archaic because major oil companies are now operating in global industries.

ThatIndianGuy · Answer

Hi akkiii The stem is asking if it is "entirely" due to increased production?? Focus on word "ENTIRELY". No, it is due to both increased production and decreased consumption. Hence, answer is NO. GMAT-Club-Forum-iek3mblh.jpeg

napolean92728 · Answer

Question 1:   
 The United States must import oil because U.S. oil production does not meet the demand. 
 Yes  – The graph and emails clearly state that U.S. oil production is significantly lower than consumption. Researcher #2 explicitly mentions that the U.S. consumes more than 18 million barrels per day but produces less than half that amount, meaning the difference must come from imports.

All U.S. oil imports come from Middle East sources. 
 No  – Researcher #2 mentions that ABC Oil sources crude from 21 countries, including Kazakhstan and Chad. The Marketing Manager also asks about how much of the U.S. oil need can be answered by Canada, implying that oil imports come from multiple regions, not just the Middle East.

The closing of the gap between U.S. consumption and U.S. production is entirely due to increased domestic production. 
 No  – The graph shows that while U.S. production has had some fluctuations, it has generally declined over time. Any closing of the gap could be due to other factors such as decreased consumption rather than increased domestic production alone.

Question 2:   
 The idea of “American” oil companies is archaic because major oil companies are now operating in global industries. 
 Yes  – The email from Researcher #2 supports this inference by stating that companies like ABC Oil and XYZ Oil source crude from multiple countries. It also explains that being an “American” company only refers to where taxes are paid, not where the oil is produced.

Domestic demand for oil could be met by American oil companies if they did not export their oil to other markets. 
 No  – The graph and emails indicate that U.S. oil production is significantly lower than consumption. Even if no oil were exported, domestic production would still not be enough to meet demand.

prragya · Answer

In my opinion the answer should be NO,

the passage says that: " oil companies operate globally and that “American” refers to where a company pays taxes ,  not where it sources or produces oil" .

It does not imply that the concept of an “American” oil company is archaic or old?

With ABC Oil currently the most profitable corporation in the country,

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Yes	No
		The United States must import oil because U.S. oil production does not meet the demand.
		All U.S. oil imports come from Middle East sources.
		The closing of the gap between U.S. consumption and U.S. production is entirely due to increased domestic production.

GMAT Multi-Source Reasoning (MSR) Questions

With ABC Oil currently the most profitable corporation in the country,

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards