|
At present most of the industries use crude oil as fuel. All over the world, it is the main resource for deriving energy. It is the driving force and the backbone for an economy to prosper and flourish. Oil companies today are spending millions of dollars for effective usage of crude oil. There are also much efforts made to discover new oil fields by research companies. This is a necessity and the need of the hour as the demand for oil is growing everyday whereas the supply of oil remains limited as oil is a limited resource. It cannot be manufactured on demand. The high demand and scarce supply creates an unbalanced ratio which leads to increase in oil prices. Finding new oil fields is becoming more and more difficult along with being expensive. The process of extracting the oil from the earth is even more demanding, after it has been discovered. Thousands of years ago, some of the oil floated to the surface of the earth because of the geological processes. This oil was used for lamps and medicines. The first oil well was drilled in Pennsylvania, which produced 20 barrels of oil per day. There are small wells that still produce oil in Pennsylvania. Today, in US alone, over 20 million barrels of oil are used everyday. This amount is 25% of the total oil consumption in the world. At present, the US has to rely on oil imports to fulfil more than half of its oil needs. There was a huge outcry in the 1950's in the US about running out of oil. This was followed by the discovery of huge oil fields in the Middle East. This led to recklessness as the use of petrol and petrochemicals grew. Most of the oil is used as fuel for transportation purposes. Almost 75% of the oil consumed in the world comes from OPEC countries. It is somewhat threatening to that the world economy relies so much on the OPEC nations to fulfil its needs for oil. The decisions made by the OPEC can have a significant impact on the economic and political atmosphere of the world. High demand and low production is having its effect on oil prices. Some still believe that there is still enough oil left on the earth to last for thousands of ears. However, much of this oil remains inaccessible as there is no technology yet to drill out this oil. The need of the hour is to maintain balanced prices on oil by giving way to renewable energy resources along with a controlled use of crude oil. Kyles Humphrey is an accomplished journalist in oil related fields, who regularly writes articles related to oil prices & indexes and crude oil including tips on investment in oil. Please visit oil.com for more details.
Related Articles -
oil, oil prices, prices on oil,
| 
