Whenever we talk about world energy source issues, everyone shows concern because the oil prices are increasing all the time. In addition, energy sources are depleting and will be exhausted one day. This phenomenon is called “the global oil crisis”. According to a theory by King (1956), all nations around the world will face an oil production crisis following a bell shaped curve based on the limits of exploitability and market pressure. Of course, not every nation will be faced with “Peak Oil”, it is based on the individual nation’s perspective and calculation of understanding peak oil. There are three main contributing factors that have caused this current global oil crisis: political instability, market pressure and the depletion of
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The depletion of a natural source is another of the causes of the global oil crisis. Now, many of the nations around the world are faced with the “peak oil” crisis. Peak oil means the oil production has met its limitation and therefore the rate of oil production will decline in the future. Sample nations of oil producing country experience with peak oil crisis, US peaked in 1971 followed by the North Sea in 1999 and Mexico in 2006. Oil production in the Middle East and the Russia has not experienced it yet, but it will come eventually. Because supplies of oil and gas can increase the income of a country and also, a fall in global oil supplies could cause spiking in commodity prices and slow down a nation economy.
These three causes not just only will give long term impact on all nations’ economy and lifestyle of citizen.
Global Oil Crisis Effect on Social
Increasing oil prices will make a lot of people suffer due to the high living cost. Increasing in oil prices in the global market meant increasing other commodities prices, especially food and the cost of transportation. People need food to continue to survive, but at the same time people need transportation to deliver food into the market. In addition, people also need transportation to run their business and earn profits to overcome with the high living cost in modern nowadays. People will experience with the high living cost in the next