How much time do you spend in a plane, a bus, or just simply a car? Out of the timeline of their entire life, the average American spends about 4.3 years in a car (30 Surprising Facts). What fuels this car that you spend so much of your life in? Gasoline, a product derived from oil. Oil is and will continue to be an important resource that people directly and indirectly use nearly everyday. In fact it is used for gasoline, rubber, and plastics. It is everywhere and extremely prevalent in politics and the scientific community. Although oil has become one of the most valued consumer commodities in the last century, the oil industry has been around for thousands of years. The use of oil can be traced back all the way back to the 6th century
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For many obvious reasons, one could state that you grow crops and you drill oil. Yes, this is very much true, however there are a completely different operational aspect that comes with this. The oil industry is dominated by a few oil producing countries. Where farming exists all over, oil is something that is subjective to where deposits are found. Countries like that of which join to make OPEC, have an international hold on oil prices, not because of space or climate, but because their country is rich in oil reserves. This leads to an unfair advantage to the minority of the world’s countries that are able to produce the majority of oil. However, although crops grow better depending on what type and in which climate, it is an industry that allows many countries to participate …show more content…
As previously stated, oil producers are able to shift the price more so than other industries. Just recently the world has seen a unique occurrence as a result of this. As countries start to produce oil at a more affordable price, the market share of OPEC is in danger of being reduced. To combat this, OPEC started producing millions more barrels of oil everyday. The increase in supply has drove the cost of oil down worldwide. This is a relief to consumers who had grown weary of high gasoline prices. However, this has also put a huge strain on other oil producers to keep up with the lowering cost of oil. This has caused a portion of oil producers to shut down. This grip on the market, allows OPEC power. As prices for oil goes down, oil producers hold their breath to see how long this will
For many obvious reasons, one could state that you grow crops and you drill oil. Yes, this is very much true, however there are a completely different operational aspect that comes with this. The oil industry is dominated by a few oil producing countries. Where farming exists all over, oil is something that is subjective to where deposits are found. Countries like that of which join to make OPEC, have an international hold on oil prices, not because of space or climate, but because their country is rich in oil reserves. This leads to an unfair advantage to the minority of the world’s countries that are able to produce the majority of oil. However, although crops grow better depending on what type and in which climate, it is an industry that allows many countries to participate …show more content…
As previously stated, oil producers are able to shift the price more so than other industries. Just recently the world has seen a unique occurrence as a result of this. As countries start to produce oil at a more affordable price, the market share of OPEC is in danger of being reduced. To combat this, OPEC started producing millions more barrels of oil everyday. The increase in supply has drove the cost of oil down worldwide. This is a relief to consumers who had grown weary of high gasoline prices. However, this has also put a huge strain on other oil producers to keep up with the lowering cost of oil. This has caused a portion of oil producers to shut down. This grip on the market, allows OPEC power. As prices for oil goes down, oil producers hold their breath to see how long this will