The Economics of Oil Term Paper by writingsensation

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.