Oil Industry

Oil Price RiseA literary works Review of the CausesStudent s NameDepartmentProfessor s NameDateOil Price RiseA Literature Review of the CausesIntroductionIn the 20th century , humankind started integrating on economic ground . The century saw one of the accelerated growths in the history of mankind . Terms like arena Economy started making headline . Most of the nations especially from the western world made full use of this revolution by harnessing their re consultations with advance machines and equipments Transportation got a boost with the advent of railways and airplanes The world is The main reason behind this economic ride and breeding has been nonhing but using fuels as a source of energy . The world moved itself from using wood to blacken and finally to oil or better to say oil colour It is this oil over which this industrial revolution bloomed . With very a few(prenominal) nations producing oil but being required by the exclusively world Oil has been one the most sought after commodity with oil producing countries having their coffer flushing with dollars . Changes in oil termss feed caused great impact on the performance of the world prudence It has its association with almost each and every period of recession and inflation (Barrell , 2004 ,. 2 . Oil traumatizes of 1974 and 1979 brought an economic slowdown with it . precisely since 1980 , its price remained steady till 2003 when prices started increasing and is currently hovering almost 55 - 58 per barrel . The condition is so uncertain that it can cause a new oil shock . A 4 percent fall in orbicular shortfall in daily supply could result in 177 percent rise in oil prices i .e , the prices allow for have a dramatic rise from 58 to 177 (National counsel on Energy Policy [NCEP] , 2005 ,. 2Literature ReviewDelving deep into the issue of price rise , a number of causes came into focus . The list of reasons starts with smooth production policy of OPEC nations .

Organization of Petroleum Exporting Countries or OPEC nations has reversed the upward trend of oil production since 1999 (International fiscal Fund [IMF] , 2000 ,. 4 . Before that rate of increase in oil production was kept at the pace in accordance with the rise in demand . But the Asian crisis of 1997 made further dent in oil prices which got modest to 11 per barrel . This fall compelled all oil export countries irrespective of being a part of OPEC or not to reduce production so that further decline in oil prices is avoided (IMF 2000 ,. 4 . This decision started causation effect from former(a) 1999 with oil prices got doubled by the end of the year darn the production was forced to fell below consumption causing a deficit . Global reliance on OPEC nations for petroleum is also very important in this scenario Around two-thirds of spheric oil reserves are concentrated in affection eastern United States members of OPEC . Relatively new and outside Middle East resources are small and are very expensive to gird (Organization for Economic Cooperation and...If you want to get a full essay, baseball club it on our website: Ordercustompaper.com

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