Economics. Oil. Prices. Comments. Facts

Economics. Oil. Prices. Comments. Facts

MAIN FACTS ABOUT FUEL, OIL, PETROL(GASOLINE), DIESEL

Oil is made into many different products like for instance clothes, fertilizers, plastic bottles, pens and lot of other products.

Saudi Arabia’s Ghawar oil field contains about 85 billion barrels of oil (the world’s largest).

Texas has the largest oil reserve in the U.S. In fact, the state is responsible for one-fifth of all of the oil America produces.

The U.S. has experienced 25+ oil spills (land or sea) in the past 10 years. That’s over 2 every year.

Vegetable oils are made from plants, examples include sunflower oil, coconut oil, corn oil, peanut oil and palm oil.

Crude oil is measured in barrels, which are each equivalent to 42 U.S. gallons.

Petroleum is recovered mostly through oil drilling.

Oil consumption is biggest in USA where daily consumption passes 19,5 million barrels.

Crude oil is considered the "mother of all commodities" because of its use in the manufacturing of numerous products, including gasoline, synthetic fabrics, plastics and pharmaceuticals.

More than 100 countries produce petroleum. Most of those countries produce both oil and natural gas

Federal off-shore drilling areas in the Gulf of Mexico and off the coast of California produce about a quarter of all domestic crude-oil production.

Oil can be found under ground in areas of rock that are porous and contain the oil within the rock itself.

Oil tankers present great danger to sea pollution because of possible tanker accidents like it was infamous Exxon Valdez incident.

The oil and natural gas that power our homes, transportation and businesses are found in small spaces (called “pores”) between layers of rock deep within the Earth.

Most of the oil found in the ocean has oozed naturally from the ocean floor.

Oil producer:

In 2014, the price of Brent crude oil was about $110 per barrel. Now the oil price is about $50 per barrel. We were stunned. Oil prices have fallen so fast. Holders of oil platforms were stunned completely. What was reason for that fall? Oil production was increased very drastically, much more than the world demands. Simple, domestic, ordinary people like cheap fuel prices. This is very good for them. We like cheap petrol and oil !!! Does global situation like this? The oil price crash affects the global economy and an economics of every country in the world. In 2014 The outages and conflicts were not influential drastically. They didn't affect much. Production in the United States and Canada was still rising. Price of oil begun to drop.

Oh, it is up and up again!!! Oil price is increasing fast. By January 2015, we noticed that low oil prices were starting to press producers in the USA and Canada. Now we can see that it was hard enough. Analysts say that amount of US oil production was decreased. US oil platforms stands out of a job, workers are laid off. Without a doubt, the United States will provide less oil this year. The amount of used platforms describes oil drilling rate. If amount of working platforms is decreased, an oil extraction drops.

Saudi Arabia suggested to Russia not to support Syria. If it happens, Saudi Arabia will cut oil production rates. So maybe the arrangement works. Some of the predictions, the price can fall below the $ 30 threshold, may not materialize.

And ... price of oil begins to rise again.

2015-02-11 03:46:20

Guest:

Have you ever thought that some day we could lose oil? Can any country exist without oil products such as diesel, petrol (gasoline)? As we know oil is called black gold. Loosing oil transport stops, industry can’t develop. Is it possible to make alternative to crude oil? Something is done, but much time is needed as to replace petroleum. Currently the first electric cars have already appeared but they aren’t popular. We all should know that oil is not endless product. So even today it is time to take actions how we replace petroleum, diesel, and gasoline thinking about future generations.

2015-02-26 12:30:42

News:

Brent oil price fell 57 US cents to 54.75 US dollar, US crude oil fell 72 cents to 45.85 US dollars.

"Once again we repeat, the market determines the price," - said on Sunday Saudi Arabian Oil Minister Ali al-Naimi. He added that the country could be ready to review the possibility of reducing production. But it could happen only with non-OPEC oil producers together.

"We tried, we discussed with non-OPEC producers, but failed to reach agreement. Non-OPEC countries claimed that OPEC has to be responsible for reducing production volume too. We claimed, that OPEC is not responsible for it."

The cartel produces 30 percents of oil. So according to A. Naiman, "if we want to raise the prices we must include all participants." In December last year, OPEC countries have decided not to lower production abilities.

2015-03-23 01:11:33

Guest:

When we see clearly that the price of oil is very sensitive to any change in politics and economics. An economic growth inspires the growth of oil prices. The faster is the economy, the more and faster processes are in society. Oil usage is bigger too. Wars, outside and inside conflicts in some countries dis-balance global fuel prices. Then it is difficult to provide the long-term prediction. Suppose, one super country has more oil than necessary. Then the price is likely to fall.

When US oil production is down, oil prices are up. Prices rise, when an economical growth of developed countries is well. Now negotiations with Iran are underway. It affects also very much. If negotiations are OK, then prices fall.

Well, what does OPEC will tell us? Will it take a passive observer's position? Will it be active? Russia also there, it has not a cake now. Again it is - a big influence.

Everybody asks whether the moment comes when the oil price is dancing up. Others say that it will remain low. Banks tend to predict. They need to have their opinion. But what's in it ... Doing this is a great place for various speculations and theories. I think that all the forecasts for 2016 oil price is NOTHING.

2015-04-14 11:38:32

Guest:

Oil industry - 2006 year.

Oil is very important to our lives. We can find oil almost everywhere: plastic, fuel, building material and other substantial things. Nowadays one of the most important matters is oil price as it is frequently changing.

What factors caused the increase in oil prices and why?

One of the main reasons why oil prices increase is war in Iraq. Iraq has one of the biggest crude oil pools, so oil is one of the bargaining chip for them. Also Iraqi make a lot of new, cruel guns, using the oil because they want to be stronger than America as they are scared of Americas‘ invasion. America is attacking them, because they want to commandeer Iraq‘s oil. For this reason Iraq is forced to increase oil prices as oil is the most important „gun“ for Iraq against the America. Furthermore, violence in the Middle East involving mainly Israel and the Hezbollah was another reason why oil prices were increasing. Some people say that war between Israel and Hezbollah is just because of their different religions, but another part says that both sides are ready to kill as many people as they need just to get crude oil. Another problem why oil prices were increasing was hurricanes. In 2005 Rita and Katrina were destroying everything in their way. Many of pipelines to the East cost were damaged, so America had to find another way how to transport oil to the East side and all other countries. Also they had to rebuild all broken pipelines and for this reason the oil prices were increased in order to receive more income. Moreover, Nigeria is a big problem for OPEC due to its political instability. In Nigeria a lot of local groups are against exporting crude oil to the other countries. Those local groups want to depose government, so they are capturing foreigner workers and have bombed Royal Dutch Shell's pipelines. Another problem is that India and China are using more and more oil, because their economy is developing. Now India and China have two of the world's fastest-growing economies. In China car sales are increasing every day, so the demand for oil is increasing too and that is why the price of the oil is going up. Moreover, there is no balance between supply and exploitation of the oil. OPEC decides how much oil countries need to extract and also it controls the quantity of oil used. Norway has a huge oil pool too, they sell oil to other countries, but they save all that money for the future generations. America also has a huge oil pool, but they buy oil from other countries, because they save their own oil for the future generations too.

Why have prices come down?

The cost of crude oil has dropped dramatically in the past eight weeks. People say that whatever goes up must come down. It is good news for consumers and the economy. Oil prices decrease was necessitated by the foreign exchange appreciation against the USA dollar. USA government and “Gold bugs” have manipulated gold prices to strengthen the dollar, because when the gold prices are lower, USA dollar has higher value. But The World Gold Council insisted to supervise all gold transactions, so now USA can not manipulate the gold prices as much as they want and dollar is decreasing either oil prices too. In November, there will be the midterm election in the USA and it is important for the oil prices. Press reports that oil prices were decreased just to hoodwink the electors, because Republicans want to be re selected. Moreover media people say that oil prices will increase when elections will be over. Of course this is just a presumption. Nobody knows how everything will be like. Oil prices are decreasing due to the friendly forces of nature. Last years‘ mild winter followed by a mild summer and relatively placid Atlantic hurricane season slashed oil prices. Moreover, the Gulf of Mexico is very influential place for oil because through it goes the most important oil ways to the East cost and other countries. Each time when there is a hurricane in Gulf of Mexico, crude oil prices is increasing. What is more, Russians want to come onto the market, so they seek to decrease crude oil prices. They announced that the state-controlled company would develop the Shtokman gas field in the Arctic by itself and would not be inviting Western companies to join in. Russia said that they will be transporting oil by ships to USA and transferring it through the pipelines to Europe. Furthermore scientists are searching how to replace oil with different material. When they find such a material, oil prices will definitely decrease. Now oil prices should stop falling due to violence in Nigeria and threat from OPEC. OPEC is planning a meeting on the 19th of October, 2006, where they will be discussing how to stop falling of oil prices and how to increase them. Crude oil is very important to our lives. Almost all things include oil. Crude oil prices are changing everyday and only sometimes those changes can be predicted, because not every factor can be controlled by people, sometimes it is just unpredictable and unstoppable.

2016-04-19 12:50:17

OPEC OIL PRICE EXAMPLE - CHART, GRAPH

Articles, facts, galleries