Oil Producers vs. Oil Usres

In: Social Issues

Submitted By sarpaul7073
Words 2319
Pages 10
Sarju Patel
BC607
Assignment 7.1

Oil Producers vs. Oil Users

Oil is a unique and finite commodity. Every person in the world is affected by oil and it plays a vital role within modern society. It has also been associated with conflict since the First World War. The importance of oil is such that nationals and ethnic groups are prepared to go to war for this commodity if necessary. As such, a unique set of economic circumstances and policy issues surround oil. These include oil’s links to industrialization, economic growth, the distribution of wealth, and global warming. Oil is vital to the functioning of the economy of individual countries as well as the global economy. It plays an essential role in transport systems (ground, air and sea), agriculture, chemicals, and the military. Thousands of products are made using oil including plastics, pesticides, paints, inks, synthetic fibers, solvents, medicines, and other vital everyday use products. The reality is that oil is all around us, even when it is not being used in vehicle or other transport engines.

Since oil is a finite commodity, concerns about when the supply of oil will decline and run out is of paramount importance and concern. The world’s supply of readily accessible oil is declining simply because more oil is being extracted than being discovered. New technologies that gain access to reservoirs previously hard to access may extend the life of these reserves. However, demand for oil in developed countries such as the United States, Europe, Japan and China are greater than ever before. India, another populous nation with a growing economy will further escalate the demand for oil. As such, geo-political issues exist, primarily due to the uneven distribution of oil deposits around the globe.

The size and scope of the oil industry is global and has clearly defined players; there…...

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