Final answer:
The production level of a small oil well on the Western slope of Colorado can impact the world price of oil. When the production level of the well increases, it leads to an increase in the overall supply of oil in the market, causing the world price of oil to decrease. Conversely, if the production level decreases, it reduces the global oil supply and can cause the world price of oil to rise.
Step-by-step explanation:
The production level of a small oil well on the Western slope of Colorado can impact the world price of oil. When the production level of the well increases, it leads to an increase in the overall supply of oil in the market. As a result, the supply-demand dynamics come into play, and the world price of oil tends to decrease.
For example, if the small oil well in Colorado starts producing a significant amount of oil, it adds to the global oil supply. This increase in supply can lead to a decrease in the world price of oil since there is a higher abundance of oil available in the market.
On the other hand, if the production level of the oil well decreases, it reduces the global oil supply. This decrease in supply can have the opposite effect on the world price of oil, causing it to rise. So, the production level of the oil well in Colorado can have a direct impact on the world price of oil.