The Oil Industry Relate World Trade Organization

The chapter by Manabu Shimizu focuses on Japan’s efforts in oil exploration and the country’s future goals in the oil industry. Since Japan imports all of its oil, the “challenge is to establish a long-term, sustainable oil supply” (Shimizu 113). Japan has begun to fund Central Asian oil exploration in the hopes of a big oil market being produced for that region. However, Japan does not intend to import oil from Central Asia, rather they want other regions to do import. By doing so, some of the production pressure is lifted from the Middle East, which is where most of Japan’s oil comes from. At the moment, the Middle East is the main producer of oil for many countries with great power over the market, and Japan hopes to create another market

Our world economy depends upon petroleum; petroleum, in fact, has shaped the modern world. It has dictated production technologies and methods. It has facilitated the emergence of a worldwide transportation network. It has allowed cites to grow and expand, and determined the spatial landscape of regions. Due to our great need for petroleum, the scope of OPEC¡¦s power surpasses our prowess as an economic superpower, considering OPEC regulates the output and the price of oil from their reserves.

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.

Being at the centre of global economic activities, the U.S. has had its own fair share of oil price shocks. However, it did not just accept or try to change or distort the market forces behind oil prices. Rather, it sought to influence them by making supreme the goal of energy independence. It also intensified diplomatic efforts and negotiations to this end.

Thus most industrial nations wanted to change their dependency upon oil, which sparked many efforts in oil conservation, restrictions, and research into alternative energy resources. This issue has caused many problems in international relations there and even today it is the root of political skirmishes. Many countries believed that the oil companies should be broken up so that there would not be any monopoly in this giant industry. This time of exploration was iconic because of the pressure in the oil industry. Also, there was a prediction during this time that made a close connection between economic health and the control of oil resources.

For example, the Intercontinental Exchange while oil prices have not been decided on by oil producers such as Niami refinery fires, Nigerian Pirates and global oil markets. The laws of demand and supply are also predicted by the increase and decrease in the prices of oil. Oil prices are driven by the increase in demand for oil which has limited or completely destroyed the gains for suppliers and producers. While the U.S still consumes more oil than any other country, it is evident from the increase in oil demand that developing countries such as China, India and Japan are driving oil prices higher by their continous growth in oil demand (Anderson, 1).

The oil industry is full of economic booms and busts. Recently, the industry is in a downturn and the price of crude oil has dropped significantly. In recent times, the price of oil has dropped by more than 40% since June 2015. This crash came after nearly five years of stability and the economies hardly hit by this downturn are oil-exporting countries such as Russia, Nigeria, Iran and Venezuela. In the past one year and a half, oil prices have been cut in half and oil executives have predicted it will be years before oil prices return to $100 per barrel. The major causes of the downturn are the declining prices of a barrel of oil, which is as a result of the strong U.S. dollar, oversupply, OPEC and declining demand.

The oil age has become an age of inequality. The discovery of oil has brought the wealth of a few people, and has brought misery to most people. Many oil rich countries suffer from the distortion of the economic development, the financial instability, the increasing gap between the rich and the poor, the serious

Crude oil is a naturally occurring substance,it is primarily composed of hydrocarbon deposits and other organic matter.Crude oil was first discovered and developed during the Industrial Revolution, and its industrial uses were first developed in the 19th century. Newly invented machines and mechanisms dramatically transformed the way in which we work, and they relied heavily, on these resources to function.Today, the world's economy is largely dependent on nonrenewable resources such as crude oil, and the demand for these resources often initiate political unrest, since a limited number of countries control and maintain the largest reservoirs. Like any industry, supply and demand heavily affects the prices and profitability of crude oil. The

Oil makes up over ⅓ of humanities primary energy supply. The production of oil, especially the refining of it is has a huge impact of on the modern day world. Oil has been collected and used since Old Testament Bible times. Oil or petroleum is naturally found in various countries including in and around the United States of America. There are many men who can be linked to the beginning of the American oil industry, but out of all of them the most famous, if not the most influential is John Davison Rockefeller. The history of the United States petroleum industry was influenced by John Rockefeller, and helped define his legacy.

Oil over the course of humanity has been referred to as the lifeblood of the world's economy. Though it might be called an overestimate, oil is arguably the most critical non-human economic resource that is crucial for the progress and growth of the economy. In his book, Yergin illustrates the economic, societal, political as well as the geostrategic importance of oil in the growth of the world's economy. The book takes the reader through a path that retrieves the historical journey of oil from

After the industrial revolution, the demand for oil has been increasing globally. Over 100 million tonnes of oil are transported around the world on average a day. There are countries like the US which consume almost one quarter of global oil output, which must be supplied from oil reserves, usually from countries like Saudi Arabia (Guinness, 2011, p. 245). This shows that the topic of oil consumption is a global issue as all countries need oil to develop and provide for their populations. The issue with this large consumption of oil is the fact that oil is a non-renewable source of energy and therefore has a limit. Oil is formed

Over the longer-term, some of the major trends that affect the price of oil are consumption for business and personal use. For example, Anderson and Boul (2005) note that China's economic growth has resulted in that nation having steadily increasing demand for oil. Much of this comes from growth of the country's consumer class, with automobile sales, and from growth in industrial uses for oil. India, the US, and the world's modern economies are all big users of oil, so the drivers of demand in these nations can have an impact on world markets for oil.

Oil has is the lifeblood of our economy and has a long history as a source of heat and light, and more recently it is the main source of fuel that is used in transportation, and thus it maintains its presence as the lifeblood of our economy. The sheer quantity of oil now being transported by sea has increased in volume by huge factors, and the size of the rigs tankers used to extract and transport the oil has seen steady increases, which gives the possibility of larger environmental disasters due to spillage by accident or due to operations. Due to increasing population and booming economies, and despite the increasing demand of green energy, the world still sees a need for increasing demand in oil supplies. Only very recently has it begun to slow down in some parts of the world that have traditionally been major consumers of oil. The US National Research Council (2003) has released some stats on how much oil consumption has increased since 1970:

In recent 10 years, the world’s oil consumption keeps rising. Based on BP world’s oil consumption statistics in 2012, the world 's major economies oil consumption keeps rising. The annual total oil consumption is 2.767 *〖10〗^(10 )bbl which is slightly below the annual oil production 2.868 *〖10〗^10 bbl. There is 3.4% increasing compare with 2011 worldwide oil consumption. But is still 1.6% higher than the average annual growth rate in recent 10 years [2]. Clothing and textiles industry consumes 20% of global oil output [3]. These 20% is varied by different countries. For example Asia-pacific region which gathers world’s major clothing and textiles industry, there is a significant 5.7%