Oil And Its Impact On The Economy - 2017 Words

Since the past few decades, owning a car has become a necessity in order to commute from one place to another. However, cars do not work automatically, they require fuel. Since the past decade, the petroleum industry has become one of the leading industries impacting the nation’s economy. Oil has become an essential commodity as it is utilized in transportation vehicles, serves as a raw material for manufacturing plastics, and is utilized in homes for cooking. America’s economy is greatly dependent on petroleum as it is the â€Å"black gold† of the nation. The considerable significance of oil has led to the drilling of it, which is not only limited to land, but also the oceans. Offshore drilling is a method in which petroleum is extracted from underneath the seabed. It is one of the significant technological advancements in the past few decades. However, the ones who are involved in the process of offshore oil production are humans, and humans tend to make mistak es. In 1969, due to a human error, an oil spill occurred and natural gas, oil, and mud shot up the well and oozed into the ocean (â€Å"Offshore Drilling†). The oil spilled led to an environmental disaster which killed thousands of marine animals and distorted the environment. In order to prevent the same error, the government passed a moratorium in 1981, banning more than 85 percent of the country’s oil drilling sites (â€Å"Offshore Drilling†). The moratorium restricted the United States to mass-produce its natural resource.Show MoreRelatedThe Impact Of Oil On The Economy3167 Words   |  13 PagesHistory Of Oil In The Economy For a very long time, oil was widely used for things such as medicine, lubricants and adhesives. However, ‘A new era began when Edwin Drake successfully produced commercially usable quantities of crude oil from a 69-foot well in Pennsylvania in 1859’ (Parker, 2013). In the 19th century, oil became a key player in all industries, businesses, technology and geopolitics (Hinsdale, 2014). Oil has become the means of survival for both consumers and producers. ConsequentlyRead MoreOil And Its Impact On The Economy1350 Words   |  6 Pagesprosperous, cheap oil had been pulled from the grounds of Saudi Arabia, humanity had enjoyed a time of the greatest economic advancement in the history of mankind. Oil gave humans the ability to do tremendous amounts of work in a short time. Oil powered equipment which build infrastructure the roads, bridges and cities. Oil was fed into tractors and combines to work the land and produce ever greater crop yields. Oil was harnessed to make the electricity that powered millions of homes. Oil was the lifebloodRead MoreImpact Of Lower Oil Prices On The Economy1745 Words   |  7 Pagescrude oil prices fell dramatically by 50% to around $50 US a barrel. This significant price reduction is largely due to a global oversupply of oil and to a lesser degree a reduced demand for oil. The impact of lower oil prices are largely positive for the Australian economy, as Australia is a net importer of oil, thus the Australian economy can benefit from this lower cost, which also assists oil dependent industries such as the airline industry with a lower cost base. The impact of lower oil pricesRead MoreThe Impact Of Crude Oil On The Uk Economy3260 Words   |  14 Pages THE IMPACT OF CRUDE OIL PRICES SHOCKS ON THE UK ECONOMY. INTRODUCTION: This paper will observe the relationship between UK economic indicators and global commodity prices. The paper will be divided into seven parts. 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CHAPTER 3: LITERATURE REVIEW 3.0 Overview. 3.1 Literature Review- Resource Curse 3.1.1 Are natural resources bad for development? 3.1.2 WhatRead MoreEconomic Impact Of Oil On Nigerian Economy9149 Words   |  37 PagesIBRAHIM FATIMA TUKUR ECONOMIC IMPACT OF OIL ON THE NIGERIAN ECONOMY PAPER OUTLINE ABSTRACT CHAPTER 1: INTRODUCTION Objective of the study. Methodology. Structure of the paper. CHAPTER 2: THE NIGERIAN ECONOMY: A BRIEF OVERVIEW 2.1 The Nigerian Economy. 2.2 History of Crude Oil in Nigeria. 2.3 Performance of the Oil Sector. 2.4 Contributions and Challenges of the Oil Sector. CHAPTER 3: LITERATURE REVIEW 3.0 Overview. 3.1 Literature Review- Resource Curse 3.1.1 Are natural resources bad forRead MoreThe World s Oil And Its Impact On The Economy1926 Words   |  8 Pagespowerful group because it controls 80% of the world’s oil and therefore is extremely influential in country’s economic system. The policies developed by OPEC directly affect the production of oil globally. It was formed at the Baghdad Conference in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Venezuela alone harbors 20% of the world’s oil. As OPEC memberships of countries were suspended other countries joined. Today, 13 member countries: Algeria, Angola, Ecuador, Indonesia, Iran, IraqRead More The Impact of the Oil Crisis on the American Economy Essay5555 Words   |  23 PagesThe Impact of the Oil Crisis on the American Economy With the current spike in oil prices, many American consumers have asked, what is going on? In order to fully understand the current situation and how it is affecting the economy one must look at a variety of factors including: the history of oil crisis in the United States, causes of the current situation, and possible outcomes for the future. It is only after meticulous research in these topics that one is prepared to answer the questionRead MoreImpact Of Oil Spills On The Economy Of Northern Nigeria1902 Words   |  8 Pagescases have been heard of destruction of the fertile area of Niger delta due to oil spills. The most affected area is in Nigeria where reports state that there have been more than 400 tons spills. The major reason given behind the spills is due to human mistakes. In a report provided by the national oil spills detection in Nigeria indicated that there were more than 1200 oil spill sites that had been left out by the oil companies by the year 2008 along the N iger delta. Even though the Niger delta fromRead MoreWhat Are The Impact Of Crude Oil Prices On Indian Economy774 Words   |  4 PagesCurde Oil price affects on economy is different in different country. In general, low prices are considered good for importers of oil because it not only improves consumer spending but also improves the trade balance of a country. Therefore an increase in oil prices has a considerable negative impact on the GDP growth country which imports oil. Whereas drop in Oil Price is bad for oil exporters as it could put a pessimism in revenues of oil exporting countries where crude exports play an enormously