Nobody downloaded yet

Oil Industry Master - Essay Example

Comments (0) Cite this document
Summary
Oil serves to be a factor necessary to trigger investment and production in modern economies. Without an unimpeded supply of oil, an economy can barely proceed on the path of economic growth and stability. Over the last few decades, oil has become a crucial aspect of the economy of developed as well as developing countries…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.7% of users find it useful
Oil Industry Master Essay
Read TextPreview

Extract of sample
"Oil Industry Master"

Download file to see previous pages This hike in price of oil comes with several causes as well as consequences. There are many factors that lead to a significant rise in oil price when the cost of producing it remains constant. Also, a rise in price brings with it several challenges to the economies of net importing countries and opportunities for exporting countries.
The factors affecting the oil price in an international scenario tend to be on the demand as well on the supply side in both short and long run. The effects of oil price happen to be on the business side, consumer side and pure macroeconomic side. This paper investigates into the major factors that bring about a change in the price of oil, in particular, in the recent scenario of oil price hikes. It emphasises what actually has led to such unexpected oil price shocks in the recent years. The paper also sheds light on the effects of changes in oil price on businesses and economies around the world by way of affecting production, consumption, investment and major macroeconomic indicators.
The recent dramatic rise in oil price has led the scholars to investigate into the factors affecting the price of oil in short and long term. ...
The major demand-side factors that affect the price of oil are economic growth and increased consumption etc. On the other hand, the major supply-side factors playing a role in increasing oil prices are incapability of OPEC to produce more, inability to gauge future demand and political factors etc. Other important factors influencing the price of oil are speculation and futures trading. The point that is important here is that both the demand and supply related factors as well as some apparently uncontrollable factors combine to cause such unexpected hike in international oil price as witnessed in the last few years.

In the beginning of last century when oil was considered to be sufficient for world consumption, the economic growth was limited to a few countries. Most of the oil was imported to the highly developed countries of that time to fuel their industries and transportation etc and the consumption of oil was also limited as compared to present times. As the time passed, major changes in the world economy began to mark their presence. More and more countries entered the race of economic growth with certain prominent countries like the United States, Britain, and other European countries accelerated their economic growth. Barrell and Pomerantz also propound that "changes in oil prices have been associated with major developments in the world economy" (2004, p152) This economic growth came about through obviously a thorough industrialisation process in these countries enhancing the demand for more and more oil. Thus, a rapid economic progression of already developed countries has led to ever rising consumption of oil, causing a deterioration of world ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Oil Industry Master Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
Retrieved from https://studentshare.org/business/1522254-oil-industry-master-essay
(Oil Industry Master Essay Example | Topics and Well Written Essays - 3000 Words)
https://studentshare.org/business/1522254-oil-industry-master-essay.
“Oil Industry Master Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/business/1522254-oil-industry-master-essay.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Nigeria and the Oil Industry
...?Nigeria and the Oil Industry Table of Contents Introduction 3 Trade Theory 3 Participation of Nigerian Oil Industry in International Trade 5 Globalisation and Regionalisation 6 Government Policies and Concerned Parties 6 The Role of International Institutions in the Oil Industry 7 References 9 Introduction Nigeria is known for its natural resources, particularly hydrocarbons. The nation is considered amongst the largest oil producing nations. The economy of the nation is highly dependent on its oil industry. It is observed that this sector contributes maximum amount in the economy of the...
5 Pages(1250 words)Essay
The Oil Industry
...The oil industry The oil industry is not a modern development. It traces back its history to ancient ages. The only problem that has necessitated changes pertains to refinery and exploitation of oil. The modern oil industry emanated from an invention by Colonel Edwin drake. It involved a steam-driven rig for drilling. This set up an expensive machine that most individuals could not be acquired. The only strategy was to harness resources for acquiring of such machines (Clo 6). The machines became more expensive to acquire as time progressed since the demand of oil necessitated very quality production. The...
6 Pages(1000 words)Essay
Nationalization of Oil Industry
...Nationalization of Oil Industry The Argentinean President, Cristina Fernández de Kirchner has announced in mid that Argentina would take control of its biggest oil producer, YPF, from its Spanish owner, Repsol. This has created significant commotion in the international forum. Repsol has faced sharp losses owing to the unexpected expropriation of its Argentinean business. The amount of compensation to be paid by Argentina against its seizure of shares from the company is yet undecided. While nationalization of YPF is expected to act in favour of Kirchner financially and politically, greater concerns cloud around the future investment climate in the economy and its relationship with its...
7 Pages(1750 words)Essay
Nationalisation of Oil Industry
...?Nationalisation of Oil Industry in Argentina Introduction Minder s that Argentina, like many other South American countries, is endowed with vast amounts of oil and gas reserves. Despite its potential, Argentina remains one of the countries that depend much on oil imports from other countries. Argentina is reported to have found itself in this unfortunate situation following the privatization of one of its largest oil and gas companies, YPF Oil and Gas Company, in the 1990s (Minder 2012). YPF was later on sold off to the Spanish company Repsol. However, Argentina has been forced recently to reverse its earlier decision to privatize the...
6 Pages(1500 words)Essay
Oil Prices Master Essay
...CONSEQUENCES OF A FALL IN THE GLOBAL PRICE OF OIL INTRODUCTION Oil is one of the key raw materials in the world and is used for various purposes. The refining of oil results into a number of different by-products which have multiple uses of their own and serve as raw material for many industries. Oil products such as petroleum, kerosene, paraffin, wax, vegetable oils, diesel etc. are used in many industries for heating, lighting, fuelling, road-making, cooking, manufacturing of plastics etc; because it is associated with so many products and their by-products any change in the price of a key product such as...
4 Pages(1000 words)Essay
Oil Industry
...The Price and Output of Oil in the Next Five Years Organization of the Petroleum Exporting Countries (OPEC) is a cartel aimed at coordinating and unifying the petroleum policies that govern the member countries in ensuring stabilization of the markets of the oil so that they secure an economic, efficient and a constant supply of the petroleum to the consumers, a stable income to the producers and a good return on capital to the ones investing in petroleum industry (The Economist Newspaper Ltd, 2004, pp.8378-8381). Demand and supply characteristics of oil The market for the oil is very unusual. In the short-term, both the supply and demand are highly...
7 Pages(1750 words)Essay
Global Oil and Gas Industry
...Analysis of the Global Oil and Gas Industry Executive Summary This research deals with why oil, the lifeblood of world economies, attracts multinational investors with strategic stakes, positioning oil investments with national policies. Porter's five forces were used in the analysis of the attributes of the oil industry stakeholders, with Iraq as a classic barrier to entry, the US as buyer power, China as rival, Saudi Arabia as supplier power, and India and Africa as substitute threats. Going beyond Porter's five forces paradigm, this study describes the self-proclaimed champion of democracy in the context of the recently...
6 Pages(1500 words)Essay
Oil Industry Essay
...One industry that is grossly affected by the macro economy is the oil and gas distribution industry. The industry's main task is to transport and distribute the natural resources that our country needs to run on. The industry is responsible for transporting, refining, and distributing all of the natural gas and oil that is needed for every day usage by customer and business needs. Typically, the entire oil business is divided into three main parts which are the upstream, midstream, and downstream sector. The upstream sector is concerned with the location and extraction of oil from various parts of the world while the midstream is concerned with the processing of extracted oil to marketable products as well as the transportation... of such...
2 Pages(500 words)Essay
Supply Chain of Oil Industry
...How power relations shape and effect different actors in a supply chain of Oil industry Introduction It is apparent that logistics and supply chain has been very instrumental in success of many businesses across the globe. Most of the historic wars and other projects have been successful or have failed in regard to success of failure of supply chain. The strongest supply chain has been in the past been denoted as indispensable in determining the success of a business or any other undertaking. The defeat of the British army by the American counterparts was linked to the powerful supplies of weapons and troops to the American side. In the oil industry, supply chain is...
8 Pages(2000 words)Essay
Oil and gas industry
...Effect of the Oil and Gas Industry on the Environment The oil and gas sector is one of the leading industries across theglobe. Its revenues are enormous, so are the costs of giving the consumers with the energy they need. America consumes more than 19million oil barrels every daily (Scholastic and Crane 9). The oil and gas sector supplies more than 60 percents of the nation’s energy. It also plays a crucial part of the American economy. The U.S is among the leading producers of oil globally (Vassiliou 70). As of 2011, the sector accounted for 12.2 percent of the gross domestic product. As production and consumption...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Oil Industry Master Essay for FREE!
Contact Us