Global Oil Crisis

In terms of oil dependence, most of the general public believes that the world has enough oil to support us for the next hundred years; in truth we are rapidly depleting our petroleum sources due to the increasing population and demand. In fact, as was initially theorized by the Hubbert Peak Theory in 1950, Earth peaked in oil supplies in 1973 and the largest oil resources that have been discovered since then have been in Venezuela and Saudi Arabia. Here it must be

Oil is the product that each and every one of us use. It can be used for fuel, heating and even cooking. The most often known for unstable price is crude oil or gasoline. According to the The Economist, The main reason for price shifts of oil is oversupply. The oil production in Saudi rose 10.3 million barrels per day. This increase is the effect of a new method that I being applied to oil extraction. This method is called fracking, fracking is where they drill into tight-rock formations then gradually turning horizontal for several thousand feet more. This results to accommodations to multiple oil wells. This new approved method of oil harvesting has raised the productivity gains and reduced the cost of harvesting oil.

The consumption of the oil cause changes in the supply and demand. The United States produces 11 million barrels of oil every day. We are one of the biggest countries to have a big influence on the production and prices of the oil. The basic supply and demand theory explains that the if a product is produced more, the cheaper it should sell. If a country were to double the output of oil day, prices would fall and the Production is high, but the distribution of oil isn’t keeping up with the market. The United States builds an average of one oil refinery per 10 years. This is a net loss due to the fact construction has slowed down since 1970s. Since 1970s, the United States has 8 less oil refineries today. The reason why we are not oversupplied with cheap oil is because of the other countries’ higher net margin and the only operate at 62% of their capacity. Excess capacity is only there to meet future demand. With demand moving accordingly, oil prices will continue to be set mostly by the market — despite external players’ best efforts. (McFarlane)

Would you really want to be responsible for destroying the animals home and the environment? The United States has a huge debate whether or not We should drill for oil in Alaska’s wilderness. But the answer seems pretty clear to me because it is not essential for our economy ,it is not valuable for the environment, and it is causing a social disruption. In the background essay, it says that many colonies We're not concerned about protecting our natural resources because they thought they had enough natural resources to last forever; But We don't, We are limited and some day in the not too distant future we may run out of natural resources so we have to circumspect and start protecting it by using other materials such

Several oil-countries have been facing economic and political turbulence as a result of the crash in oil prices, and there is disagreement among OPEC as how to handle the situation. (Krauss) While this is happening, America’s oil production continues to rise, as it inches closer to becoming an energy superpower in production and consumption; and countries that depend on their oil exports face recession.

The United States consumes more than 25% of the world’s petroleum products which is a large percentage, considering only 3% of the world’s oil reserves are produced by the United States. Given the demand for petroleum products such as gasoline, understanding why Crude oil prices have skyrocketed in recent years, is not hard. According to the article “Ending America’s Oil Addiction,” the surge in crude oil prices can be reduced in large part to the simple concepts of supply and demand. (Cooper, 2008)

The featured article “The End of Oil,” the author, Alex Kuhlman argues that oil production is decreasing due to the costs of production are rising because cheap and easily accessible oil is hard to find despite increased consumption.(Kuhlman, 2007). Kuhlman (2007) provides evidence both from oil demand and supply aspects to illustrate the imbalance which causes the end of oil.

The Energy Information Administration in 2004 released puzzling information that by 2025, Saudi Arabia will have doubled the demand of the oil needed for consumption; 22.5 barrels of oil per day. Maass explains that this information cannot be more than wrong because it is simply discussing the demand for oil without taking into consideration that oil does not last forever and the field that Saudi has currently are growing old. After reconsideration, the EIA retracted their statement and lessened the amount. The author quotes Sadad al-Husseini on the topic of peak oil from his interview, “That’s not how you would manage a national, let alone an international economy. […] You draw some assumptions and then say, Okay based on these assumptions, let’s go forward and consume like hell and burn like hell.” (25). Husseini is the former Vice President of Saudi Aramco, the Saudi Arabian oil company. When Maass asks if Husseini believes the Saudi, or even the world, will ever be capable of achieving the current and projected needs for oil, he simply states, No. Saudi Arabia is just an example of the many countries with, once full, oil fields that are now facing a scarcity amount incapable of energizing the planet. And are surveying new sources for energy to profit form.

This report will consist of the causes and consequences of the changing price of WTI crude oil and recent trends in the global price of oil. It will also include the effects of the ever-changing price of oil on individuals, business firms, governments and the economy.

The 1970s is a significant period in the U.S. oil and gas history. American oil production was declining steadily and imports from mainly Arab producers were relied on to shore up the shortfall. The Arab states, which constituted the majority of the Organization of the Petroleum Exporting Countries (OPEC), imposed an oil embargo in October 1973 against the U.S. and a number of other industrialized nations that backed Israel during the 1973 Arab-Israeli War. Not only did the sanction ban petroleum exports to the target nations, it also introduced cuts in oil production. As a result, between 1972 and 1982, oil prices increased more than tenfold.

Oil prices affect most American's daily lives. Whether it is used to fuel your car, a plane, to heat your home, or even if it is just used inside products, like plastic that we use daily, oil plays a role in all of our lives. Last year, in 2015, an extreme decline in gas prices swept the United States. For example, oil prices have decreased to less than $30 a barrel which is the lowest it has ever been in 12 years. There are many factors that can contribute to this sudden decline in gas prices, but their are three that are the most relevant. These include, the recent advancements in other fuel sources, the changes in the leading oil suppliers of the world, and the simple economic concept of supply and demand. These three ideas are all important in contributing to the fall of gas prices.

According to Domm (2013), the author of the first article, apart from the unrest in Egypt, several other factors such as a plunge in the inventories of domestic crude oil could drive up demand and in the end trigger an increase in the price of gas. In the opinion of the author, although the problems facing Egypt (and Libya) have affected supply

Peak oil is described as the point in time when the maximum rate of petroleum extraction is reached, and at this point we assist to a diminution of the resource. Oil is one of the world 's most vital resource, we use it in every aspect of our daily lives, we use it for electricity, gasoline and even drugs. The disappearance of this resource can lead to a major global disaster. In an attempt to identify the potential impact of such a disaster and find alternatives energetic resources, a cloud of researchers started to focus their research around this topic. While the first researches made on peak oil where mostly focused on its plausibility, nowadays researches concentrate on determining the exact period of occurrence, as well as the economic and political impact of this event.

World oil demand is increasing as emerging economies need more energy to increase their living standards. Estimates, shown below, are that by 2030, China and India as emerging markets will import over 70% to 90% of their fossil fuel needs (1) . Coupled to a continued high and growing demand for oil, makes this a robust market for the next 30 years.

Because private companies and nations have over-estimated oil reserves it is difficult to be exact but these estimates of world oil reserves are close and further research will reflect this. Also, rapid exploitation may have damaged many reserves' wells and will limit production. It may be that we (the world) have much less than is believed! The United States past its "peak oil" point back in the early 1970's ( for further research refer to Peak Oil Crisis Books) and now imports about two-thirds (2/3) of its oil. The U.S. economy and the current American way of life is supported by energy from other nations. Those nations that have not already past peak oil (maximum production) are very near it. In the future, production will decrease while at the same time demand increases. The spread between supply and demand will cause higher prices (for all products),