Jump to content

What must be done for Crude Oil Exploitation...

Recommended Posts

  • 1 month later...
As we know that Crude Oil Exploitation relating political and social issues is a serious problem that everyone has to notice. Also the change in Crude Oil Prices will be inevitable due to Environmental concerns. What must be done?



It is a serious problem and threat as well. This issue has been in the system in different continents but still no one really put an end to this. Just wanna share with you an article I read:


In 1990 in the run-up to the Gulf war, the oil companies pushed up the price of petrol and claimed it was because of inexorable market forces which had forced up the worldwide price of crude oil. As shadow energy secretary, I set up Labour's petrol price monitoring unit. This exposed the truth, eventually accepted by nearly every commentator not in the pocket of the oil industry, that the increases owed little to a shortage of oil and a great deal to profiteering by the oil companies.


They are at it again. The impression the oil industry has created is that there is a shortage of oil which has increased the world price and that the companies are innocent victims of market forces. Oh yeah!


Let's look at the facts. Figures from the International Energy Agency show that the world production of crude oil in August this year was higher than in 1998. Yet in 1998 the average crude oil price was just $12.52 per barrel compared with $34 per barrel today. Over and above the August production figures, output is expected to rise by 1.7m barrels per day or 2.2% of total world production. Some 0.8m of these extra barrels have been promised by OPEC and a further 0.94m extra barrels are expected from non-OPEC countries. So production shortages, or fear of production shortages, can't be the explanation. The companies also claim that oil stocks are low. They don't mention that the stocks that are low are mainly their stocks and that it was they who decided to stock less.


The oil companies also claim that oil consumption has risen as a result of economic expansion. Surely an effective global oil system should be able to respond without needing huge price increases.


No one can safely say whether there is an oil shortage because although production figures are available worldwide, storage and consumption figures are not. So the world is laid open to the effects of rumours and propaganda from speculators who usually lay the blame for price increases on OPEC. This badly managed cartel must take some of the blame - but only some.


to read more: Crude Oil Exploitation

Link to comment
Share on other sites


This topic is now archived and is closed to further replies.

  • Create New...