The Importance Of Oil Production

Currently Saudi Arabia is one of the leading producers of oil in the world. However, it is losing its foothold on the market. Many countries, like North America, are increasing their oil production and are looking for ways to become less dependent on foreign oil. The increased competition has caused oil prices to decrease. By producing their own oil, countries not only will increase their revenues, but will also reduce their need to rely on foreign oil. By reducing their need foreign an oil a country does not have to worry that their oil supply will be cut off if they go to war.

Most people probably do not think about how much of their lives depend on oil. This profitable commodity is constantly being used around the world, twenty four hours a day and seven days a week. From the scented creams people use on their bodies, to the airline jets soaring above, oils are being used. Oil is one of three major forms of fossil fuels, coal and natural gas being the rest. Fossil fuels began forming millions of years ago in the Carboniferous Period when trees, plants, and small organisms died (DOE, 2015). Eventually the fossils sank to the bottom of many swamps and oceans forming layers of peat (a brown, soil-like, and spongy material). Over thousands of years, peat was covered by clay, sand, and other minerals which turned into a type of rock called sedimentary. Over thousands of years rocks piled on top of the peat creating more pressure. Eventually the pressure managed to squeeze water out of the peat and over millions of years, this mineral rich water turned into the three major fossil fuels that people know and use today (DOE, 2015). Regardless of its proficiency and success, the oil industry has become one of the most unethical businesses in the world. Their blatant disregard for the environment and its inhabitants have continuously put them in the crosshairs of many conservatives and concerned citizens. This paper primarily focuses on the ethical dilemmas that surround the oil industry.

The Dow Jones Industrial Average (INDEX:DJIA) stock price has been fluctuating and has moved up from 16,384on September 18 to 17,910 on November 6. The Dow Jones Industrial Average (INDEX:DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896. The DJIA typically has not only solid profits, but also create immense amounts of cash flow, much of which they turn around and return to investors. Through a combination of dividends and share buybacks, Dow companies demonstrate their commitment to

Introduction: Venezuela is a country in South America that occupies the northern coast. It has a population of 30.4 million people according to a 2013 survey. The entire country of Venezuela is about a third larger than Texas. Venezuela shares its border with Columbia to the west, Guyana to the east, and Brazil to the south. The GDP per capita in 2013 was $14,414 US putting Greece on the middle tier on the Global Economic Pyramid. Venezuela’s 2013 inflation rate was also 56.2%. Venezuela has the “largest proven reserves of crude oil in the world” and is currently dominated by the oil industry.

The United States is the largest import of oil, which produces over 10 million barrels of oil each day. That a lot of oil that they are producing in my opinion. As the years have passed by we have gotten oil for our foreign country this happen in the Gulf War. We also need oil from other countries so in all reality we have to reserve all the oil that we get and make sure we keep up the rapport that we have with the other countries in order to keep the United States out of finically situations. In all we have to be safe about who we deal with and how we react, because we don’t want to cause any infractions with other people or countries and then have to pay for what we have done. “Even as Saudi Arabia diverges from U.S. foreign policy objectives

The Dow Jones Industrial Average and NASDAQ composite are both significant economic indicators. The Dow Jones was created by Charles Dow in 1896. “The Dow” is a price-weighted average of 30 significant stocks, most of which are traded on the New York Stock exchange. The NASDAQ is the National Association of Securities Dealers Automatic Quotation System. It is the first and largest electronic stock exchange in the world, consisting of more than 4000 companies. Both the Dow Jones Industrial Average and NASDAQ are significant gauges of the current state of the economy. However, the NASDAQ is much larger and includes more than 4000 companies, while the Dow Jones only includes 30 companies. All of the NASDAQ stocks are also traded on the NASDAQ

Figure 5 shows how the United States has a developing oil production that U.S. is the largest oil consumer in the world. When the largest consumer produces a massive amount of oil it will influence many countries that depend on the revenue budget from oil exports. “The United States added almost 1 million barrels per day of oil production between 2012 and 2013” (Ratner, Tiemann, 2015, p6). With this production of the United States effects the oil prices in the global because the U.S. imports oil decreases and the supply of oil in the world increases.

It’s a particularly noteworthy development when oil prices are down by 50%. During the past decade, the price of oil has traveled from $60 per barrel to its peak of $146 during 2009, then in 2015 it fell into a steep decline again to below $50. Since oil is sold in a global market, the increase or decrease of its price has a tremendous impact on all economies throughout the world. This research goes in depth on how the shift in oil prices has affected Saudi Arabia and the US’s economies, the world’s biggest oil producers. The issue will be broken down to three components; a brief summary of the laws and regulations that possibly affected the change in oil prices, how it is currently affecting the US and Saudi Arabia’s economies, and their quest for alternative solutions. The purpose of this research is to analyze how both the United States and Saudi Arabia have been affected and what progressive measures they are willing to take in response to the steep decline of oil prices.

What affect does the price of oil and gas have on the economy? How does this affect the daily lives of the entire population? The preceding questions are the basis for the enclosed report. The primary objective of this report is to give a few reasons as to what causes prices of oil and prices of gas to rise. Among these reasons, speculation of things that may or may not happen, like a terrorist strike, is one of the leading factors. Another reason for the continued rise in prices of oil and gas is the constant growth that China is experiencing in population and energy consumption.

In order to keep up with demand, the United States has been forced to rely on importing 80% of its crude oil. This niche was filled from the creation of OPEC who uses price gouges to create an economic boom in their country, through unifying and controlling the industry. This economic boom produced by OPEC amounts to an annual 730 billion (U.S.) dollars. In order to fully understand the magnitude of power this organization has, we can compare their annual income to every country 's GDP. After doing this we notice that OPEC would be the 20th wealthiest nation trumping 167 countries in the process. This fact is mind boggling because when we talk about GDP we are talking about the value of all the finished goods and services produced within a country. When we talk about OPEC we are talking about a single product which is crude oil. This is worrisome for many reasons, first and foremost being that countries who are not members of the organization don 't want one organization controlling and monopolizing such a valuable resource.

The purpose of this paper is to explain the effects of oil prices on various parts of the economy. The Impact of Lower Oil Prices by Bruce Lantz and Contemplating Collapsing Oil by Leonard Melman assist in explaining the advantages and disadvantages of declining oil prices. Both articles address the issues of unemployment and changes in total spending caused by the price of oil. Taking into consideration the opinions of chief brokerage and wealth management companies, as well as the actions of various prominent oil and gas companies, Lantz and Melman share their predictions in regards to the outcome of the current oil situation. However, after considering the facts presented in these articles, it seems very likely that these low prices will ultimately become a serious problem. Before delving into the meat of the above mentioned articles, several vital economic concepts must be tackled.

Dependence on oil is a threat to international economics. The Middle East holds much of earth’s supply—twenty percent of the world’s oil comes from the Persian Gulf. The U.S. itself imports more than two million barrels per day of Persian Gulf petroleum and crude oil (J. Miller). That’s almost twelve percent of America’s oil use. This region of the world is tumultuous, with wars and uprisings ongoing; relying so heavily on trade from this area places the international economy at risk. Nuclear weapons are available, and due to the tension between Israel and the surrounding Arab nations, their use is plausible. Both ISIS and Al Qaida operate there, religious fundamentalism and corruption are rampant, and the Syrian civil war hasn’t showed

Since the past few decades, owning a car has become a necessity in order to commute from one place to another. However, cars do not work automatically, they require fuel. Since the past decade, the petroleum industry has become one of the leading industries impacting the nation’s economy. Oil has become an essential commodity as it is utilized in transportation vehicles, serves as a raw material for manufacturing plastics, and is utilized in homes for cooking. America’s economy is greatly dependent on petroleum as it is the “black gold” of the nation. The considerable significance of oil has led to the drilling of it, which is not only limited to land, but also the oceans. Offshore drilling is a method in which petroleum is extracted from underneath the seabed. It is one of the significant technological advancements in the past few decades. However, the ones who are involved in the process of offshore oil production are humans, and humans tend to make mistakes. In 1969, due to a human error, an oil spill occurred and natural gas, oil, and mud shot up the well and oozed into the ocean (“Offshore Drilling”). The oil spilled led to an environmental disaster which killed thousands of marine animals and distorted the environment. In order to prevent the same error, the government passed a moratorium in 1981, banning more than 85 percent of the country’s oil drilling sites (“Offshore Drilling”). The moratorium restricted the United States to mass-produce its natural resource.

Biofuel has captured much of the attention of many countries around the world. To ensure future energy security and reduce global green house gas, several companies across the world are investing on biofuel production as a renewable alternative energy to co-exist with fossil fuel, which is now becoming scarce (Royal Society, 2008). BP is one of the significant producers of Biofuel, which is producing biofuel from sugarcane in Brazil. However, the expansion of biofuel production has raised the concern about the negative environmental and social consequences related to sustainability. It depends on how biofuel development is designed. Brazil has lot of positive experiences in biofuel production, yet debate is still continuing on negative impacts of ethanol production from sugarcane. Negative impact sometimes outweighs positive impacts (UN Energy, 2007). Land that are used for ethanol production cause loss of natural resources (Faaij and Dieperink, 2007) and affect food production in developing countries as land is used in different pattern for sugar cane production (Doornbosch, 2007). Number of sustainability standards as well as environmental and social policies has been developed over the years to minimize the risk of negative impact. For sustainable biofuel development, BP participates in different stakeholder activities such as Roundtable for Sustainable biofuel and better Sugarcane Initiative (Bonsuro). Effective management of stakeholders is critical to

The aim of this report is to hypothetically evaluate how oil and gas production can affect our environment. The purpose is to recognize the issues such as pollution, water infection and soil deterioration caused by the extraction of precious fluids for both onshore and offshore production. Then identify its negative effect on the health, economy, and environment change of the planet earth.