Global Economy: Commodies and Industries

983 Words2 Pages
bulb-icon

Recommended: Global economy

Commodies and industries play a huge part in the global economy. They basically make up the whole economy. This is an examination of the geography of a particular commodity, where the commodity is produced and where the commodity is consumed. Information about the pattern of trade in the industry looks, what countries/regions are the most significant exporters and which countries are the major importers will also be discussed. Oil is a standout amongst the most significant, quite requested, costly, and a paramount wellspring of regular vitality on the planet. Oil processing normally alludes to the aggregate number of oil barrels that are concentrated on consistent schedule through the oil extraction machines and the different penetrating procedure. The requirement and utilization of oil has expanded in business and additionally family areas. Oil provides the world's 6.9 billion people with a large percentage of their daily energy needs. It also plays a huge factor in transportation. Oil represents global commerce on a massive scale. Companies spend billions of dollars annually to maintain and increase their oil production. . Over 200 countries have invited companies to negotiate for the right to explore their lands or territorial waters, hoping that they will find and produce oil, create local jobs and provide billions of dollars in national revenues. Large quantities of oil flow daily from "exporting" regions such as the Middle East, Africa and Latin America to "importing" regions such as North America, Europe and the Far East. This creates political, trade, economic and even national security concerns on both sides. Oil and gas exporters want to maximize their revenues and improve their trade balances while maintaining control... ... middle of paper ... ... so it has to rely on other countries to keep up with the demand. It is the second importer of oil.(3) The world population is growing more and more every day. Because of this, the demand of oil rises. China is the most populated country in the world, and it is one of the biggest consumers of oil. The U.S is also one of the biggest countries in the world, and they consume tons of oil. People use oil all the time and with big populations, the amount of oil used will increase. The oil industry is one of the biggest industries in the global economy. Oil, just one of the many commodities, is affected by the economy of the world every day. Oil will be imported to where the need is located. While the location of oil, will be determined by nature or the technological advances of a society. Our world is ever changing, and so are the patterns of a commodity like oil.

Show More
Related

  • The Keystone Oil Pipeline Project

    1037 Words  | 3 Pages

    Almost every single nation in our world today, the United States included, is extremely reliant on oil and how much of it we can obtain. Wars have been started between countries vying for control of this valuable natural resource. The United States as a whole has been trying to reduce its reliance on foreign oil and has had some success, especially with the discovery of the Bakken formation and projects like the Keystone Pipeline.

    Read More

  • US Needs to Have Energy Independence

    795 Words  | 2 Pages

    America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%). The risk associated with these countries being the top oil producers is twofold. One, they are located half way around the world making it an expensive to transport the product logistically to a desired destination. And two, the U.S. has weak, if not contentious,...

    Read More

  • Supply And Demand of Gasoline

    1019 Words  | 3 Pages

    In 2004, crude oil producers around the world expected a 1.5% growth in the world’s demand for crude oil. The actual growth rate was more than double the projections at 3.3%. This growth was due to rapidly industrializing of foreign countries such as, China and India. Therefore the lack of crude oil affected the supply of gasoline to consumers at the pump.

    Read More

  • Responses to the Oil Crisis in the US

    1067 Words  | 3 Pages

    People need oil for daily life and work. Since World War II, oil has caused many serious problems in the United States and throughout the world. Remarkably, economic and social problems were heightened by the emerging energy crisis. By 1974, the United States gained a third of its oil by importing from the Middle East. James Oakes, et al.

    Read More

  • America’s Dependence on Foreign Oil

    1087 Words  | 3 Pages

    The United States has had several scares throughout its history in terms of oil, most turn out to be over exaggerations of a small event. However, these scares highlight a massive issue with the U.S. and that issue is the U.S.’s dependence on foreign oil. Why does it matter that our oil should come from over seas? In a healthy economy this probably wouldn’t be as relevant, but the U.S.’s economy is not exactly healthy at the moment. There are 4 things that I would like to address: what the problem is, how it affects us, what some solutions are, and what solutions I feel are best.

    Read More

  • America's Oil Problem

    2225 Words  | 5 Pages

    As it stands, oil companies have a firm grasp of the American economy. As the price of oil increases, the price of living also increases. Not only that, but they are getting away with paying dues they owe. "Oil companies have escaped more than 60 billion dollars in royalties because of a loophole to get access to more leases. The United States is the third largest producer of oil in the world, and 31 percent of that production comes from land owned by the federal government" (Offshore Drilling Will Enrich Big Oil Companies 2). America maintains this title even though "America's crude oil productivity has decreased since 1985" (Crude Oil Production 1). Currently, oil is becoming more expensive and damaging the economy while America is becoming more dependent on foreign oil; decreasing productivity and narrowing offshore drilling.

    Read More

  • United States Foreign Oil Dependency

    918 Words  | 2 Pages

    The U.S dependency on foreign oil presents many negative impacts on the nation’s economy. The cost for crude oil represents about 36% of the U.S balance of payment deficit. (Wright, R. T., & Boorse, D. F. 2011). This does not affect directly the price of gas being paid by consumers, but the money paid circulates in the country’s economy and affects areas such as; the job market and production facilities. (Wright, R. T., & Boorse, D. F. 2011). In addition to the rise in prices, another negative aspect of the U.S dependency on foreign crude oil is the risk of supply disruptions caused by political instability of the Middle East. According to Rebecca Lefton and Daniel J. Weiss in the Article “Oil Dependence Is a Dangerous Habit” in 2010, the U.S imported 4 million barrels of oil a day or 1.5 billion barrels per year from “dangerous or unstable” countries. The prices in which these barrels are being purchased at are still very high, and often lead to conflict between the U.S and Middle Eastern countries. Lefton and Weiss also add that the U.S reliance on oil from countries ...

    Read More

  • Oil Spill Response

    5767 Words  | 12 Pages

    " Oil is the life blood of our modern industrial society. It fuels the machines and lubricates the wheels of the world’s production. But when that vital resource is out of control, it can destroy marine life and devastate the environment and economy of an entire region…. The plain facts are that the technology of oil-- its extraction, its transport, its refinery and use-- has outpaced laws to control that technology and prevent oil from polluting the environment…" (Max, 1969). Oil in its many forms has become one of the necessities of modern industrial life. Under control, and serving its intended purpose, oil is efficient, versatile, and productive. On the other hand, when oil becomes out of control, it can be one of the most devastating substances in the environment. When spilled in water, it spreads for miles around leaving a black memory behind (Stanley, 1969).

    Read More

  • Globalization And Global Commodity Chains

    835 Words  | 2 Pages

    Gereffi (1994), a key author in this area of research, defined Global Commodity Chains as; ‘sets of interorganisational networks clustered around one commodity or product linking households, enterprises and sates to one another within the world economy”. This global interconnectedness rose out of commodity chains that out sourced some of their production to other countries as a way of reducing costs and gaining. Commodity chains refer to the whole range of design, production and marketing of a product. (Gereffi 1999) Gereffi (1994) identified three key characteristics of Global Commodity Chains; they have a specific input to output link production chain, a geography in the sense that various activities are located in different places and there is a governance structure determining the power relationships within the chain.

    Read More

  • Oil and Saudi Arabia

    4092 Words  | 9 Pages

    The current world dependence on oil leaves much to be said about the impact of Saudi Arabia and the Middle East on foreign policy and international politics. Presently the world's largest consumer of oil, the U.S. depends on Saudi Arabia and much of the Middle East for the energy to run its businesses, its homes, and most importantly, its automobiles. In the past few months U.S. consumers have felt the pressures of increasing gasoline prices as they struggle to commute and live their daily lives. This leaves the U.S. with important decisions to be made on behalf of its citizens and its position in the international realm.

    Read More

  • The Globalization of ExxonMobil from 1980 to Present

    2517 Words  | 6 Pages

    Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...

    Read More

  • Overview of the Oil and Gas Industry

    3053 Words  | 7 Pages

    The industry is divided into three distinct sectors including the upstream, midstream and downstream sectors. The upstream sector includes the exploration and production of crude oil as well as the exploration and production of natural gas. This sector has experienced the largest amount of deals in terms of mergers and acquisitions, which will be further discuss in section III. The midstream sector involves the transportation of extracted petroleum from the upstream sector through pipelines, rail, barge, truck as well as storage. Finally, the downstream sector connects the end consumers through derived products such as gasoline, liquefied natural gas (LPG), liquefied natural gas (LNG), kerosene (aircrafts), and diesel…

    Read More

  • International Business and Globalization

    1482 Words  | 3 Pages

    Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.

    Read More

  • Globalization and International Commerce

    1632 Words  | 4 Pages

    Globalisation has been one of the most significant developments of the last half century, and issues such as trade and international commerce have become increasingly important. In consequence, problems such as poverty, unfair wages and poor working conditions in third world countries have been drawn to the attention of consumers (Hayes and Moore, 2007). This is a growing global issue which cannot be ignored by anyone concerned about the problems in developing countries. Free trade and Fair Trade have both been offered as solutions to these issues.

    Read More

  • Essay On Oil Refinery

    1112 Words  | 3 Pages

    Fossil fuels are used and burned for the engines of ships, cars, airplane and helicopter engines, lawn appliances, saws, and other machineries. Since the less dense liquid products are in heavy demand for engines for combustion, a refinery will use its ability to convert dense hydrocarbons and less dense gaseous components into numerous higher value products. Petroleum refineries produce millions and millions of crude oil. Interestingly, one oil refinery located in Israel is capable of making up to nine millions tons of crude oil just in one year! The cooling towers of this facility extend so high up into the air, making magnificent landmarks!

    Read More

More about Global Economy: Commodies and Industries

Open Document