Oil and world Economy Essay -- essays papers

Oil and humankind EconomyQuestion Examine the fossil oil industry in coitus to the world economy, utilising any economic theory / theories you think appropriate. One of the just about important energy resources since human invested the machine is oil and its products. But as all resources scarce, oil is limited even more. Only few countries in the world father oil fields and produce oil for the rest. Therefore, in right awayadays where factories, cars and oil-fired central heating increased significantly, oil has have a necessity for the society. Peoples demands for oil and its products, fuel, gas and oil for central heating is unlimited, but supplier countries produce a dogged number of barrels of oil everyday so as to view as a technical shortage and, of course, higher profits. These few countries are the oligopoly of the industry, have a market leader and there are barriers to the entry of spic-and-span countries (Sloman 1997 p.124). These countries are dominati ng the market of oil and created the Organization of Petroleum exportation Countries (OPEC) in 1960s. OPEC is an interg all overnmental organisation that offers stability and prosperity to the petroleum market. Membership is outspoken to any country which is a great net exporter and which shares the same ideas of this organisation. OPEC has now 11 members and supplies more than the 40% of the worlds oil market. The price of oil over the last year has increased approximately over 100%, grasp the highest levels over the la...