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Oil is a fossil fuel that takes millions of years to form, thus it is non-renewable. Up to 1998, it is estimated that 45% of the total available oil had been used up, the majority within the last century. The demand for oil continues to rise for industrial societies as oil makes up 40% of the world energy supply. When the world’s oil reserves will be fully depleted is not certain, but the fact that it will happen is certain. The real shock will be felt long before though, because as the oil wells run dry the rate they pump will slow. When the supply does not meet the demand, the price of oil will increase. The price of oil is a major economic factor considering that most if not all modes of transportation is reliant on it. (MacKenzie)
In the 1970’s two major incidents happened that foreshadowed the effect of the high price of oil on the world economy. The Arab embargo of 1973 and the fall of the Shah of Iran in 1979 caused the price of oil to triple then double and major recessions and inflation followed. ... As oil reserves start to deplete this scenario could be duplicated in the near future.
OPEC (the Organization of Petroleum Exporting Countries) is a cartel formed out of 11 oil-producing countries.
Approximate Word count = 1050
Approximate Pages = 4.2
(250 words per page double spaced)
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