An analysis of the importance of petroleum to the world economy

Order Assignment This order has already been completed on Studybay On Studybay you can order your academic assignment from one of our professional writers. Hire your writer directly, without overpaying for agencies and affiliates! Check price for your assignment 18 bids submitted. The Importance of Petroleum to World Economy The development of the world economy was accompanied by a high rate of consumption of primary energy sources, especially oil.

An analysis of the importance of petroleum to the world economy

Most countries are significantly affected by developments in the oil market, either as producers, consumers, or both. Today Oil is one of the most important raw materials we have. Everyday we use hundreds of things that are made from oil or gas.

The Oil Industry started off more than five thousand years back. Oil sipping up from the ground were used to make the boats waterproof in the Middle East and also used as medicating as well as for painting different things. The demand for Oil was much higher than what it actually produced and this brought forward the concept of making oil production companies which is collectively known as the Oil Industry.

The Oil Industry is a very important industry in the world and a lot depends on the price of the oil and it has been observed that whenever the oil prices increase the price of various products also increases. The Oil Industry also through oil production accounts for a large amount of the consumption of energy.

In this issue the Middle East is in the first position and the lowest consumption is done by the countries in Europe.

According to the statistics the amount of oil consumed by the world every year is as many as 30 billion barrel among which nearly 25 percent of the oil consumption is done by United States of America. The Oil Industry can be parted in two, Upstream and Downstream.

The importance of oil in the world evolved at a slow pace but once it was identified, it became one of the most important thing in the lives of human beings.

There is fast growing oil consumption in the non- Asian countries. From estimation it is found that to meet the projected increase in world oil demand the total petroleum supply in is required to reach million barrels per day from 80 million barrels per day as of the year Today there are several facts why oil is too important for the global economy and this is a part of our everyday life.

What we do we look to the oil price. I want to introduce you several facts about oil that is very important to understand: Shockingly, sometimes horrifically important - The world economy has been developing with oil as its lifeblood for over a hundred years.

Oil is directly responsible for about 2. There is no doubt in my mind whatsoever that modern civilization would collapse in a matter of months if oil stopped flowing.

An analysis of the importance of petroleum to the world economy

Oil is about as important to the developed world as agriculture. You have no idea how big oil is. The natural gas distribution pipelines in the US alone could stretch from Earth to the Moon times. There are millions upon millions of miles of pipe on the planet to distribute crude oil, refined products, and natural gas.

There is no reason whatsoever to think any feasible amount of renewables growth can displace fossil fuels in a couple generations. Not just wealth for producers, but wealth for everyone who uses it - The historical use of cheaper, more-concentrated, and cleaner energy sources seems to be one of the most direct causes of economic growth.

Even more importantly, it causes vast improvement in the human condition. Simply put, better sources of energy increase productivity and produce fewer negative externalities. This effect is huge.


Cheap, abundant energy lifts nations out of poverty. Failure to secure energy supplies dooms nations to collapse. The Mayans found this out too late.

Bad years like most of the s cause crippling contractions and mass layoffs. Oil is a widely-traded, high-competitive commodity market. That means basic economics causes profits margins to go as low as they can without companies exiting the industry.

Marketing Petroleum Products In Nigeria - Associated Problems

This led to a large increase in oil revenues for oil exporters and a deterioration of the current account for oil importers. From this analysis we draw a number of suggestions for further consideration.Frequently asked questions including how and where to purchase AMSOIL products and switching from petroleum motor oil to synthetic.

Synthetic oil and filter recommendations as well as motorcyle (including Harley Davidson) lubricant recommendations. Mar 21,  · Oil's role in the world economy and in the global crises The importance of oil in the world evolved at a slow pace but once it was identified, it .

Manufacturing industries generated $ trillion in GDP ( percent of total U.S. gross domestic product) in But even these figures do not fully capture manufacturing’s role in the economy.

There is, of course, a legitimate argument for some limitation upon immigration. We no longer need settlers for virgin lands, and our economy is expanding more slowly than in the nineteenth and early twentieth century. Importance of Petroleum to the Economy. Print Reference this.

Published the weighted average cost of all oil imported into the US, as its "world oil price". Petroleum products' demand has changed drastically in both quantitative and qualitative terms. Analysis usually consists of tabulation or cross-tabulation of responses to.

A review of Jordan's economy, including its Investment Promotion Law, monetary policy, Free Zones, Free trade and bilateral agreements, privatization program, economic reform and a sectoral analysis of all sectors of the economy.

Oil's role in the world economy and in the global crises - CNN iReport