Oil Industry Master Essay Example | Topics and Well Written Essays - 3000 words

Oil Industry Master - Essay ExampleThis hike in price of inunct comes with several causes as well as consequences. There are many factors that lead to a significant rise in oil price when the cost of producing it remains constant. Also, a rise in price brings with it several challenges to the economies of net importing countries and opportunities for exporting countries.The factors affecting the oil price in an international scenario tend to be on the demand as well on the supply side in both nobble and long run. The effect of oil price happen to be on the business side, consumer side and pure macroeconomic side. This paper investigates into the major factors that bring just about a convince in the price of oil, in particular, in the young scenario of oil price hikes. It emphasises what actually has led to such unexpected oil price shocks in the recent years. The paper also sheds light on the effects of changes in oil price on businesses and economies around the world by way of affecting production, consumption, enthronisation and major macroeconomic indicators.The recent dramatic rise in oil price has led the scholars to investigate into the factors affecting the price of oil in short and long term. ... The major demand-side factors that affect the price of oil are economic growth and increased consumption etc. On the some other hand, the major supply-side factors playing a role in increasing oil prices are incapability of OPEC to produce more, inability to gauge future demand and political factors etc. different important factors influencing the price of oil are speculation and futures trading. The point that is important here is that both the demand and supply related factors as well as some apparently uncontrollable factors combine to cause such unexpected hike in international oil price as witnessed in the abide few years. In the beginning of last century when oil was considered to be sufficient for world consumption, the economic growth was lim ited to a few countries. about of the oil was imported to the highly developed countries of that term to fuel their industries and transportation etc and the consumption of oil was also limited as compared to present times. As the time passed, major changes in the world economy began to mark their presence. More and more countries entered the race of economic growth with certain prominent countries like the United States, Britain, and other European countries accelerated their economic growth. Barrell and Pomerantz also propound that changes in oil prices have been associated with major developments in the world economy (2004, p152) This economic growth came about through obviously a thorough industrialisation process in these countries enhancing the demand for more and more oil. Thus, a rapid economic progression of already developed countries has led to ever rising consumption of oil, causing a deterioration of world