So, what is behind the rise in oil prices? This is not a supply and demand balance problem. This is not because of fundamental factors.
The issue appears to be that the markets are worried by a series of risks, in Iraq, Venezuela, Russia, Nigeria, and elsewhere, rather than essay on oil crisis on essay on oil crisis or not there is truly an oil shortage. Are the markets right to be spooked?
And if the real risks don’t measure up to market expectations, why are they so concerned? First it is worth noting that, despite the headlines, oil is not at historically high prices. The headlines are only justified by ignoring inflation; they are not justified.
Even so, set against reasonable expectations, today’s prices are essay on oil crisis and Research paper on cell phone technology essay on oil crisis prices reflect broader worries in society about energy.
The most immediate concern is instability in the Middle East, and Iraq in particular. There is a common view that reliance on Middle East oil imports is a big problem. The Middle East is part of the wider concern about energy insecurity in a world in which we are dependent on imports for energy.
In the UK, news that Newcastle is to begin importing coal captured a mood of uncertainty about a future in which we will be more reliant on imports, especially natural gas.
But a more interdependent world is not necessarily a more risky one. In fact the opposite is true. With respect to oil, the markets have got it eloi-martorell.000webhostapp.com The developed world is actually less dependent on essay on oil crisis for economic growth, less dependent on oil for energy, and less dependent on the Middle East for oil. We are less dependent on energy for economic growth in the sense that, after an early phase of industrialization, developed economies consistently require less energy for each additional unit of economic growth. Energy intensity energy per unit GDP peaked in the USA inand by had essay on oil crisis by about 60 per cent of this peak 2.
We now derive a greater proportion of our energy from other sources. The essay on oil crisis increase has been in natural gas whose essays on oil crisis overlap, but are not identical with, oil and nuclear power: World Issues 4 Source: The USA has become more reliant on imports, but this does not mean imports from unstable regimes.
There have been small increases in the share of oil coming from Africa, Latin America and Asia, but the bulk of the increase has come from OECD countries, mainly.