Oil price
Description:
The oil price has been increasing, and nowadays it records highest, over 150 US$/barrel.
The rate at which oil is demanded exceeds the rate at which oil is supplied is the driving force of this event.
This is mainly due to world oil depletion and a steady increase of world oil consumption.
Enablers:
- Explorement of new sources
- Economic growth of China
- Political matter in Middle east - The contiuity of global economy growth
- Huge increase of oil consumption in Brics
- Source of oil in running out
- Failure of international agreement to reduce oil consumption
Inhibitors:
- New source of Energy
- Failure of regulation on energy consumption
- New way of living with less energy consumption
- Rapid development of new source of energy
- Wellbeing Life Style with less energy consumption
- Try to reduce oil consumption by environment activity
Paradigms:
- Oil supply is very inelastic. Higher prices do not produce a significant increase in oil production.
- Oil demand is very inelastic. Higher prices do not sigificantly reduce the demand for oil.
- New finding of oil resource can change the power shift of the world.
Timing:
- Oil shock in 1973, the fourth Middle-East Wars acted as trigger.
- 1991, Gulf war.
- 2003, Iraq war.
- 2007, Peak oil.
- 2008, The oil price has been increasing, and nowadays it records highest, over 150 US$/barrel.