Lower Oil Prices Carry Geopolitical Consequences
Summary
Editor’s Note: The recent drop in global oil prices is affecting economies around the world. This series examines the reasons behind the falling prices and their effects on major energy consumers and producers. Part One discusses the structural changes in the oil market, particularly the growth in supply and the decline in demand.
Part Two will examine the countries likely to be most troubled by price drops, while Part Three will look at the countries likely to gain the most.
Since mid-June, the price of Brent crude oil has fallen by nearly 25 percent — going from a high of $115 to about $87 a barrel — and structural factors are causing concern among global oil producers that oil prices will remain near current levels through at least the end of 2015. This concern has caused several investment banks to slash their oil price outlooks for the immediate future. Stratfor believes that oil supplies will stay high as energy production in North America increases and OPEC countries remain hesitant or unable to cut production significantly. Moreover, in the short term, the Chinese economic slowdown and stagnant European economy will limit the potential for growth in oil demand. These factors could make it harder for global oil prices to rebound to their previous levels. Continue reading
Petroleum and crude oil – the future of oil production | DW Documentary Video
Published on Mar 17, 2019 — [Online until: April 17, 2019]
The market for oil is volatile. The transition from petroleum to renewables is in full swing, and global demand for oil could fall faster than predicted. [Online until: April 17, 2019].
When the price of crude oil tumbled dramatically between 2014 and 2016, it heralded the demise of an economic and geopolitical world order in place since the end of World War II. In the last few decades, fracking technology has turned the US into the world’s largest oil producer. Against that backdrop, the move towards renewable energies and away from fossil resources is making dramatic steps forward. A study published back in September 2012 made headlines by predicting an imminent drop in oil prices. Continue reading →
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