The oil production and consumption has been a vastly discussed issue. Being that oil is one of the main energy sources that are being consumed. However because oil is a finite resource it will be a matter of time before this resource runs out. Further more because of the uneven distribution of where oil is found or situated and the many political issues that evolve around the price and where oil is being depleted. And where these oil can be retrieved is at oil reservoirs that are from but an accumulate of high pressure and temperature forming Hydrocarbons then results to oil and gas. Later these oil and gas are seeped through the fractures in the rocks and they are trapped underground, which are the oil reservoirs.
The distribution of oil is fairly uneven as the distribution of the oil is clearly situated on the northern hemisphere of the world uses a lot more oil than the rest. Also countries such as the United States as had shown on graph uses more than .07 barrels per person each day. Clearly the demand for oil varies over each country. This can be due to many factors such as economical or technological.
The main countries that are producing oils are all mostly in the Middle East and Africa. And these countries all have something in common which is that they are all OPEC members. OPEC is the Organization of Petroleum Exporting Countries; this cartel’s main objective is to safeguard the Organization’s interest, also it pursues ways to stabilize the price in the oil market eliminating the unnecessary fluctuations.
Also as these countries are mostly less economically developed countries. The OPEC has been maximizing economic objectives. Also as this is one an organization of the people that export oil it will always be there best interest to keep the price of oil high. And also keep the supply of oil at a certain rate which can suggest that they will do anything to protect their cooperates interest. Also these cooperates are ready to use their political influences in order to improve on their profit.
Where oil is found can be seen on the map above it is concentrated at the Middle East which also the main exporter of petroleum in the world. United State also has a fair amount oil rock and oil sources, which is another way of United State to lower the amount of oil that is imported. However United States is still the country that imports the most oil. Also in Africa and South America also which has excellent oil sources. Which also happens to some of the large exporters of the world.
As we can tell from this table corresponds with the map of where oil is found. Such as Saudi Arabia and the United States. But also this table will correspond with the usage of oil by individual countries. However the consumption by the United States way exceeds the production that they are able to provide therefore requires other countries to export their oil to the United States. However the country the produces the most oil Saudi Arabia is not huge consumer for oil whereas the oil that they produce goes to countries such a huge consumers like the United States.
Also comparing the population of the United States to other countries such China And India their oil consumption is a lot lesser than a country which has a population that is 4 times less than their population is able to consume so much more oil. This might be due to the development of the country and the amount of machinery that they own that’s able to consume more oil than the less economically developed countries.
However who controls the price of the oil? Oil has been a major factor as to how the economy fluctuates. The OPEC has controlled oil price. Which is seems to be an unfair way as to how to control the price of a resource.
Where they are able to control the amount of oil that is distributed and therefore using the how supply-demand affects the price of the oil. That as the demand rise
They control the amount that is supplied. Which boosts the price of oil and helps them as to raising the price of oil. Earning these people more and more money, which is used to further develop the economy of the oil producing country
But because the amount of oil that can be found in the oil wells are running out. People have searched for different ways as to how to extract oil through other means. And these means are like tar sands and shales. Tar sand contains clay and water and extremely viscous petroleum called bitumen. Because tar sand costs money in order for it to be extracted and used this will not be much help to the already running low oil wells. Also there are shales which are also called mudstones is also an alternative way as to extracting oil. These shales are sedimentary rocks that can be combusted and be used as oil.
To conclude oil’s price will continue to rise as to until we find a way to substitute with a different energy source or find a way that we can consistently produce a fair amount of oil for all to use. And as we continue to use oil we as a race would also need to find ways as to how to continue to use oil but able to control the amount that is damaging the environment. Whereas politically because that oil is one of the main energy resource that is shared among the world rather than having a close group of people such as the OPEC that controls the oil only in the cooperates perspective we should have an open discussing as this is a global issue. These cooperates now should realize that it is partially their responsibility to control it in the worlds perspective rather than being greedy.
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