Oil industry was once the most profitable industry owing to the fact that countries all over the world need lots of oil barrels to meet their energy demands. Hence, oil was one of the most imported products as despite the high prices, countries needed to import oil barrels.
Oil finds it use in a lot of day to day routine works. They are needed as fuels in vehicles in airplanes so naturally; all countries would need to stock ample supply of oil if they do not want to upset the regular running of various daily activities.
Hence, oil industry was one of the most profitable ones as the gulf countries cashed in this situation and earned lots of revenues. However, market analyzers are of the opinion that in the year 2012, the oil industry can face a major setback as the blows of recession are going to hit them hard. A lot of factors, logics and trends have been taken into consideration before coming to this conclusion.
The experts at analysis have come to believe that both demand and price for oil barrels are likely to hit a low after the recession. However, there is nothing to be pleased about. Since, dealing with oil problems along with recession woes might be a huge task. Not only would the gulf countries suffer due to this oil setback, but the other nations too would be at a loss because despite slashed prices, they would not be able to derive benefit from the situation.
So, it is not the right way of reducing the oil consumption and measures should be taken to keep this setback in check. One ray of hope that emanates from this entire situation is the fact that the net oil consumption is likely to go down which can help as the natural reserves of oil are at the danger of being exhausted completely.
No comments:
Post a Comment