Why China Is The World 's Fastest Growing Economies?

It is also used to make some chemical products, such as detergents and paints. Every country in the world uses oil, however, many countries do not produce it. The top Countries that produce a large quantity of oil in the world include China, Saudi Arabia, United Stated, and Russia, and the top countries that consume tons of oil every day include China, Russia, United States, Japan, and Germany. Some studies showed that by 2039, the world might face oil crisis due to the current rate of oil consumption (Oilprice, 2009).

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.

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.

Energy efficient alternatives to oil, such as solar power and hybrid cars, have grown in popularity over the recent years. When gas prices were at an all time high, people began purchasing hybrid cars to cut gas costs. For example, from 2010 to 2014, sales in electric cars increased by almost 120,000 cars a year. As demand for electric cars rose, demand for oil decreased. Moreover, decreased consumption of oil in other parts of the world had led to less demand. Recent economic problems in China, one of the largest importers of crude oil, and developing parts of the worlds have led to an overall global drop in demand for oil. When a situation occurs where there is an excess amount in the quantity of a product compared to the amount of product that is needed, the price of the item drops. Similarly, as less oil is demanded throughout the world and a record number of oil is being produced, the price of oil is driven

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.

Drop in fuel prices can also affect the producing countries negatively. This is because the production cost may be high yet the prices are low. These countries still are spending the same amount of time to get crude oil from the ground and they have to stay on the same price that the market is

Since 2008 many oil companies in the US have been selling 3.5 million barrels more than they did because the oil prices go up and down constantly. In New York the oil price has dropped nearly half in six months. Out of the 12 biggest oil producers in the world most all of them are in the Middle East because they don't have many jobs over there except drilling oil. The US is the biggest buyer of oil. China, Japan and then Western Europe are some other big buyers but they are slowly buying less and less. More oil is pumped than the world needs, that is why the prices of oil are going down. People that drive in vehicles are clicking their about this but oil companies are scratching their heads because they aren't making that much money.” Anytime

The growing oil scarcity in the early 21st Century and its possible implications on the global economy, including economic growth, inflation, food security and poverty, is a subject that has been widely well known and discussed by a plethora of scientists and economists. Peak oil, a term coined by M. King Hubbert in 1965, is generally defined as “the time in our history when world oil production will reach its all-time peak and begin to incline forever”(Hirsch et al., 2005). By their finite nature, there is no argument over whether fossil fuels – oil, gas and coal – will go scarce, but rather when this will occur, whether alternative energy supplies will meet the ever-increasing demand, and how best to oversee such a transition. The failure to do so could result in a profound word-wide economic crisis leading to lower economic standards in developed and developing countries alike. Cuba, one of the only countries that has faced such a crisis yet, is an example of options and hope.

China’s exceptional economic growth could barely be suppressed in China’s borders. Although China was both a giver as well as a receiver of economical communication throughout Eurasia. One of China’s many effects of their economic transformation lay in the dispersal of its tegnological advancements to people and places as the migration of soldiers, merchants, traders, slaves, and pilgrams, carried their accomplishments internationally. China’s unique way of manufacturing salt by solar evaporation spread to Christian Europe as well as the Islamic world. Papermaking, which started during the Han Dynasty, spread to Vietnam and Korea by the 4th century, Japan and India in the 7th, etc. Both printing as well as papermaking were both heavily affected

Recently, we found that “the oil price dropped a lot; one year ago, a barrel of Brent crude cost $110 and today it was merely $60, which resulted in 45% decrease in the oil price through economies. Not only did the oil price cut, the price of goods and services also dropped in the worldwide economy. When the price of goods and services declined, consumers would like to consume more and purchase more products, because they could pay less to get the same thing as before. And for firms, cheaper inputs lowered the cost of manufacturing goods, which resulted in the increase in the overall profit. What’s more, we all know that energy use (oil) is

The world is depended on oil and soon oil will become more valuable than gold and could lead to a worldwide war. Price for oil could soar to above two hundred fifty dollars per barrel. Oil and other fuel cell also cause green house gases which contribute to global warming. China is consuming two times more petroleum than 1996 and India is projected to consume three times the oil it currently does by 2050. Global house gas emission has increased by twenty percent from 2003 to 2006. Energy consumption has increased exponentially throughout the globe. The U.S. department of energy projects energy consumption will increase seventy percent from 2003 to 2030. The world has agreed to reduce emission by twenty five percent before 2020 and by over

A collapse in demand for oil resulting from sharply declining global economic activity could cause oil prices to fall, as happened in late 2008. Indeed, this is a fairly likely possibility. But while it would make oil cheaper, it would not make fuel more affordable to most people. It is theoretically possible for the world to curb oil demand through policies that limit consumption, and it is also conceivable that some unexpected technological breakthrough could rapidly result in a cheap, effective alternative to petroleum. However, these latter two developments are rather improbable. Thus there is no likely scenario in which the services provided by oil will become more affordable within the context of a stable global economy at any time in the foreseeable future.

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.

Oil prices are largely driven by the global supply and demand. When oil prices rise, it becomes more expensive to manufacture and transport the goods, in this case, autos. Deputy CEO An of Geely, a private Chinese company, expresses his disappointment by the oil- price changes. He added that changes in the oil prices have a bigger impact on the auto industry as this makes a lot of demands on the carmakers and raises the standard and they have to design the product thinking more about the fuel consumption (O’Rourke). The increase in the cost to produce the products must be factored in the higher price of the product. The sale of automobile is affected by the rise in the oil prices and there is a possibility that the volume of sale may decline as the result of higher prices that the producers now have to charge for their products. Even though the auto industry decreases its price significantly, their sale would decrease. This is because the demand of oil is inelastic in the short term. This can be better explained by giving example. If the oil price rises, the economy doesn’t stop. People still have to go to work. The result of an inelastic demand for the oil is that people will continue to buy and pay more for the oil because they do not have immediate alternatives, but they will change their spending behavior elsewhere because of their fixed amount of income (Enzo). In the long run, people would find the

Oil prices matter to the health of an economy, despite a consistent fall in global oil intensity; crude oil remains an important commodity and events in the oil market and continues to play a significant role in shaping global economic and political development.