Evaluate an article Essay Example | Topics and Well Written Essays - 250 words - 1

Evaluate an article - Essay Example For example, the investments in energy production reduced by 20% following the Asian crisis of 1999. The investments reduced by 10% and later recovered a decade after the crisis (The Economist Newspaper 1). In order for the firms to survive in a competitive market they should engage cost reduction strategies. Oil companies should employ strategies for reducing the cost of transporting oil and gas in order to survive the declining oil prices. They must utilize the most appropriate engineering techniques that can lessen the cost of production. For example, Wells deals with varieties of oil and gas that enables them to lower the prices of their products. They pipe oil from Eagle Ford Play in Texas because it is cheaper than using the train to transport it from Bakken formation in North Dakota (The Economist Newspaper 1). In conclusion, the declining price of commodities can undermine the investors and result in a reduction in economic growth. However, it helps the management to come up new approaches for reducing production cost and increasing productivity. This article is suitable for assessing the effects of technological advancements on cost reduction and improving business