This article examines why the price of oil has increased. An oil analyst, Nick McGregor says "People are being cautiously optimistic about where they think things could go over the next nine months." This is because according to new economic data from the US indicates the national factory activity is better than expected, which is parallel to the better expected manufacturing data from China and India. Therefore, it is concluded that the global economy will recover. Other analysts say that the sharp rise in the price of oil is about more than just economic optimism; it is about Iran's nuclear program. The Iranians have recently done missile testing. This has led to new EU and US sanctions on oil exports, leaving the public to question the supply of oil. The increase to the cost of oil will further damage the economy, since the prices will rise and thus the US demand decreases.
Environmentally this would be a good thing (maybe if the politicans know how to handle it); economically not so much (due to the import/exports dollar amount of oil for all the countries). The fact that Iran has started looking for alternate resources definitely means that there is not enough oil left and this is a good reason for the public to be worried about the supply. Oil is not just used as gasoline for cars but exists in almost everything such as hairbrushes, computers, and food. Knowing that it takes at least 50 years to fully phase in a new energy system, I know that there is at most 50 years of oil supply left, but I get a feeling that we would be lucky if there was 30 years of supply left. I think that oil plays a major role in our global economy crisis because all counties are in need of it and the Middle East crisis, US/China consumption rate will play a big role in determining the outcome of this world tragedy.
http://www.bbc.co.uk/news/business-16396026
Environmentally this would be a good thing (maybe if the politicans know how to handle it); economically not so much (due to the import/exports dollar amount of oil for all the countries). The fact that Iran has started looking for alternate resources definitely means that there is not enough oil left and this is a good reason for the public to be worried about the supply. Oil is not just used as gasoline for cars but exists in almost everything such as hairbrushes, computers, and food. Knowing that it takes at least 50 years to fully phase in a new energy system, I know that there is at most 50 years of oil supply left, but I get a feeling that we would be lucky if there was 30 years of supply left. I think that oil plays a major role in our global economy crisis because all counties are in need of it and the Middle East crisis, US/China consumption rate will play a big role in determining the outcome of this world tragedy.
http://www.bbc.co.uk/news/business-16396026
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