The Economics of Oil

Paper Summary:

This paper examines the the reasons for many of the worlds battles including WWII and the current war in Iraq, which all revolved around, in one way or another, the need for oil. The writer of this paper attempts to convey the manner in which world governments control the price of oil. The writer details the differences among the countries in terms of the amount they produce and in terms of the quantities they export. In terms of production the countries include Saudi Arabia, the U.S., Russia, Iran and Mexico. In terms of exports the countries include Saudi Arabia, Russia, Norway, Iran and Mexico. The U.S. does not export oil, as it consumes all it produces. This paper discusses the many countries that depend on other countries for expanding their oil production and on the political implications involved. This paper examines Cuba's oil shortage and America's impact on this issue. This paper details the process for drilling and producing crude oil, which first appears on the surface of the earth as a thick liquid dark brown or greenish in color. This paper also delves into the theory of oil depletion, called the Hubbert Peak Theory. This theory assumes that if the oil reserves are not increased by some means, then the production of petroleum will reach a peak and then decline.

From the Paper:

"There is a similar fight that is now taking place between Japan and South Korea regarding a disputed island group. This is seen in an announcement by the Korea Corporation in the middle of March that it was now trying to invest $225 million to develop gas hydrate deposits worth $150 billion. This quantity of gas will meet the needs of South Korea for 30 years. This is not unique as Even Japanese companies are busy in Sakhalin, which is a Russian island and was half owned by Japan up to the end of World War II. The investment is worth $ 1 billion a year. According to Japanese news agencies, the oil companies and trading houses of Japan are about to invest $20 billion for the production of oil and gas."

More papers on The Economics of Oil:

• Article Review # 86236 : "Supply and Demand of Oil in China"
• Essay # 72629 : "Politics of Oil in Iran"
• Essay # 56351 : "The United States Oil and Gas Industry"

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