Final answer:
The oil industry is anticipated to encounter substantial changes under the Green New Deal, with a probable decrease in demand leading to challenges, yet also opportunities for transition towards renewable energy and Petrochemicals.
Step-by-step explanation:
The Green New Deal is a comprehensive approach to address climate change by transitioning the U.S. to renewable energy sources. As such, the oil industry is expected to face significant impacts. With a shift towards renewable energy, the demand for oil is likely to decrease, potentially leading to a downturn for the industry. The implementation of the Green New Deal would prioritize the reduction of carbon emissions and likely result in strict regulations on fossil fuels. This shift could result in economic challenges for the oil industry, including job losses and decreased investments. However, some economic benefits could arise from the development of new technologies and infrastructure projects aimed at cleaner energy alternatives.
External factors, such as geopolitical events, technological advancements, and changes in market dynamics, like the price of solar energy falling or a major oil discovery off the coast of Norway, also play a crucial role in shaping the future of the oil industry under the Green New Deal. Policies focused on sustainability and reducing reliance on oil would further push the industry towards innovation or transformation to adapt to the changing energy landscape, including potentially pivoting into the petrochemicals sector or renewable energy.