Oil and world Economy Essay -- essays papers

Oil and world Economy motion Examine the inunct industry in relation to the world economy, utilising some(prenominal) economic theory / theories you think appropriate. One of the most important naught resources since human invested the machine is oil and its products. But as all resources scarce, oil is limited even to a greater extent. Only few countries in the world puzzle oil fields and produce oil for the rest. Therefore, in nowadays where factories, cars and fueled central heating plant increased significantly, oil has become a prerequisite for the society. Peoples demands for oil and its products, fuel, gas and oil for central heating is unlimited, but supplier countries produce a fixed number of set of oil everyday so as to maintain a adept shortage and, of course, higher profits. These few countries are the oligopoly of the industry, have a trade leader and there are barriers to the entry of new countries (Sloman 1997 p.124). These countries are rule the m arket of oil and created the Organization of Petroleum Exporting Countries (OPEC) in 1960s. OPEC is an intergovernmental brass that offers stability and prosperity to the petroleum market. Membership is open to any countrified 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 course has increased approximately over 100%, reaching the highest levels over the la...