Oil Fuels World Economy!
Oil is the commodity wanted all over the world. Countries that have oil wells enjoy great wealth, by exporting excess output to those countries that don’t have this very important natural resource. New exploration is taking place in Alaska, Kuwait and on the continental shelf of Australia. About 45% of consumer goods (plastics, synthetic rubber, food, medicine, essential oils, etc.) are made using crude oil.
Amongst the biggest oil producers in the world are Saudi Arabia, Russia and Iran. The output of all USA oil fields is insufficient to cover the domestic consumption, and about 40% is being imported. This figure varies depending on the climatic conditions, and the level of use of the American motorists. However, oil products enjoy a strong demand, particularly heating oil used in heaters in many homes in the cold climate.
Oil price has risen to a lofty $149 a barrel in July 2008, but since then has been steadily sliding down, as more than ever businesses and individual consumers have implemented measures that enable them to reduce petrol consumption, and cut on heating oil use. This is particularly evident in the US, the world’s biggest consumer of crude oil. Yet, oil and gas jobs, particularly on offshore oil rigs, are as popular as ever.
Currently, the price of a barrel of crude Brent sweet oscillates around $55 - $60 a barrel, whilst the price for a gallon of gas in the US stays below $2. The tendency for oil prices to keep low is the direct result of many countries’ economic growth being slower than expected. Because oil is widely used in various chemical plants and manufacturing processes, the demand will stay relatively high.
Were we to maintain the oil consumption at the current level, the world oil reserves would run dry in 20048. Hopefully, it is not going to happen. The majority of consumers use this precious commodity wisely, and many governments encourage the development of alternative energy sources. New car motors run more economically, with the diesel engine delivering on average 20% savings in petrol consumption.