The World Surrounding The Oil Industry

1070 Words Apr 29th, 2016 5 Pages
Oil. The very word brings mixed emotions to the mind the minute it is spoken, but with good reason. This single substance has the power to run the entire world, and this is exactly what it is doing. The foothold that oil has on our society can be seen every day with the millions of people worldwide who rely on it to power their cars to their destinations. So how can something that so many people depend on suddenly plummet in price so rapidly? Is the age of oil coming to an end? These questions that demand a deeper investigation into the world surrounding the oil industry. As for the price of all goods and services, the price of oil is driven by supply and demand. Furthermore, the price of oil is also driven by many other factors such as economic activity, the use of air conditioners in countries that use them, weather, and finally by geopolitical upsets(economist). With all this in mind, it takes a deep analysis to determine why exactly the oil price has been falling for so long, and has finally reached an all-time low. We can start to understand this by looking at the economic activity. First of all, price for oil is low due to a lower demand for oil than in recent years. This starts with growing popularity with other fuel types, but this is just a small part of the issue. On top of the switch of popularity, America has become a contender for the oil industry with the influx of oil companies started within the country. This increase in supply decreases the need to import…

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