The price and quantity of oil demanded would increase if China were to experience a rapid economic growth. When the demand increases it will cause the demand curve to move to the right.…
The United States is a fossil fuel hungry nation whose economy, markets, and transportation is highly dependent on the abundance of crude oil and petroleum. Although there is roughly 85.9 billion barrels of undiscovered technically recoverable crude oil currently in the form of oil shale located beneath our soil, we still rely on imports from foreign countries. With a crude oil and petroleum product net import of 7,270 thousand barrels per day the United States is one of the top importers of foreign oil (Petroleum & Other Liquids, 2013). According to the U.S. Energy Information Administration, EIA, the United States receives its leading imports of oil from Canada at a rate of 2,815 thousand barrels per day, Saudi…
Thanks to modern technology and scientific progress, which is easy to take advantage of unconventional oil, America now has become a major exporter of petroleum products in the world they are issued naphtha, diesel and gasoline for Latin America, Europe and Asia. The outcome of currently imported oil dropped dramatically exceeded all expectations.…
References: Haug, M. (2011, Spring). Clean Energy and International Oil. Oxford Review of Economic Policy, 27(1), 92-116.…
He goes on to explain that two thirds of the world's oil is in the Middle East, primarily Saudi Arabia, Iran and Iraq. With their high volume of oil, the Middle East supplies large quantities of oil to other countries, as well as, America. For instance, China is second to the United States in their dependency on foreign oil, who imports half of their petroleum from the Middle East. As both countries continue to need more and more oil, America could eventually become a threat to China and possibly other countries who will also need more imported oil. The potential for future world crises could come from the need for oil. That is why there is an urgency to create other alternatives before the issue ripples into a massive world war. China has already taken steps to gear their country toward alternative means by setting fuel economy standards. America needs to follow suit and do the same and focus on the research needed to determine the best possible alternatives to foreign…
China has been significantly involved in the development of African countries in recent years, with an estimated 1 million Chinese people now residing in Africa. Trade between China and Africa was worth in excess of $100 billion in 2010, which shows how important the relationship between the two areas has become. However, there are questions surrounding whether China is merely using Africa for its own benefits rather than investing in development of the poorest continent in the world.…
Oil prices have hit a record high at $100 a barrel. Prices have doubled from the rates seen in January 2007 and more than quadrupled since 2002. What factors are causing this unremitting increase and what are the likely consequences for consumers and the global economy? What is causing the latest price spike? This was triggered by concerns about violence in Nigeria and Algeria as well as the delay of the elections in Pakistan. The assassination of the former Pakistani Prime Minister Benazir Bhutto increased oil prices because stability in Pakistan is important to US policy in the Middle East. Threats to oil workers and facilities in Nigeria have cast a long-term shadow over oil supplies from the world's eighth largest oil exporter. Suspected militant attacks on Wednesday in Nigeria's main oil city, Port Harcourt, heightened concern over the potential for further disruptions in shipments. "With the military and the militant warlords engaged in a violent tit-for-tat, the risk for oil disruptions in Nigeria remains higher than in the past few months," said Olivier Jakob of Petromatrix. The weak dollar, which makes it cheaper for importers to buy dollar-denominated oil supplies, is also a major factor. Is demand for oil continuing to soar? Yes. The biggest catalyst for oil's seemingly remorseless rise has been the simplest economic driver there is: the balance between demand and supply. Demand is at an all-time high, fuelled by the continued breakneck economic expansion of the Indian and Chinese economies. With more than a billion people in each country, and both economies growing fast, manufacturers and consumers are sucking in energy at an ever-increasing rate. China overtook Japan as the world's…
Still recovering from malicious colonialism, the southern half of Africa has incurred several other factors contributing to the regions underdevelopment. The southern half has a general inability to contain AIDS, corruption, and war in the region. Racism is still prevalent, there are dire food shortages, and to add, there is mounting debt in almost every country in the southern part of the continent. For decades, these issues have plagued the region, yet, there is little or no aid being pumped in to uplift the area, nor is there any end in sight. But what kind of threat does this pose for global stability? In failing to resolve these problems decade after decade, the southern half of Africa is only further pushing towards global instability. Constant warring, human rights issues and corruption keep the vicious cycle going. With the problems of the southern nations continuing, violence is spreading unimpededly, contributing to global instability.…
President George W. Bush recently stated in his 2006 State of the Union address, “Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology.” The President of the United States understands why America must do everything it possibly can to research other more feasible methods of energy to fuel our cars because the foreign countries America currently depends on to supply such a precious fuel is unstable and very undependable.…
Crude oil is one of the world’s most important natural resources. Over the past six decades or so, crude oil – because of the products derived from it, has become highly indispensable in our everyday lives. Despite being a non-renewable resource, it is still used extensively in power generation. It can be argued that industrialization owes its development to crude oil.…
In the past few years, the question of the rising influence of China in Africa has been raised multiple times by newspapers such as The Economist1 and even in the European Union2.…
Although the United States (U.S.) is the third largest for oil producing (the U.S. produces 10 percent of the world’s oil and consumes 24 percent), most of the oil we use is imported. The U.S. imported about 60 percent of the oil consumed in 2006 (Baird, 2008). About half the oil we import comes from the western hemisphere. Oil imports contribute heavily to the U.S. trade deficit, and the U.S. is forced to make political decisions that it might not make otherwise if they were not so dependent on other countries (Baird, 2008). With this said I have made my decision to agree that the U.S. should invest in alternative sources of energy, such as wind and solar power because this will allow us to become less dependent on other countries for our oil supply.…
The United States’ increasing dependence on oil is a growing problem. Oil demand is increasing at an outstanding rate, not only in the U.S. but also around the world. Consider this, in 2008, “the world produced about 85 million barrels of oil a day, but global demand topped 86 million barrels a day” (Pickens). Just 4 years later the oil consumption rate has increased to 90 million barrels a day (IEA). A major portion of this increase can be attributed to high oil consumption rates in China and India, which now are importing more oil. The graph below from the Energy Information Administration (EIA) illustrates how significantly China’s dependence on world oil has increased over the past 15 years. It isn’t just competition for oil with other countries that is contributing to the problem though. Our usage of oil has to be looked at; especially our vehicles which consume an ever increasing amount of oil. According to the EIA, gas mileage of all types of U.S. made vehicles has leveled off since 1985. While foreign car companies have continued to make more fuel efficient vehicles, U.S. automakers have failed to keep up with innovations to make their vehicles increasingly more energy efficient. Based on the fact that each year more people are driving and people are commuting longer distances, oil consumption will continue to go up.…
Russia, China, and Saudi Arabia are the three countries most vulnerable to the overproduction of oil.…
China's crude imports will remain high in the upcoming months as oil firms still have a strong incentive to produce…