The crude oil prices have been increasing almost consistently for the past years or so with it reaching an all time high in the 1980s. Some people have claimed that 2012 will see a declining oil demand and subsequently slashing of oil prices because of the global recession that is hitting us at the moment. Whether or not this happens cannot be affirmed with assurance, however, the logic seem to be in tandem and if the demand and the price for crude oil go down substantially, we are not to be surprised.
However, if you ignore the predictions that are doing the round at the moment and look into the statistics of the previous years, you are to see the huge margins of profit in this field of oil export. Most of the gulf countries which have huge oil reserves have benefitted tremendously because of this natural resource. The global oil demand has been increasing consistently in the past few years. With the booming oil prices, a lot of countries had to forcibly cut down their supplies and adjust their demands, but such is the necessity of oil, that despite the hiked prices, oil export is still mandatory for countries like US which do not have a natural reserve of crude oil.
There are alternative energy resources as well, but even then they cannot substitute the utility of oil which finds its use in a wide range of activities. A lot of people (especially Americans) are of the belief that Iran affected oil prices by manipulating the demand supply curve. President barrack Obama even agreed to talk them into this matter and come to a common solution benefitting both nations, but nothing much has materialized from it except for the media frenzy which culminated into nothing.
Whether or not the prediction for 2012 comes true is a tale time can tell, but if the prices are slashed, crude oil industry might be in need of the panic button.
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