Wednesday, September 11, 2019

How Oil and Gas Could Affect the Economy Research Paper

How Oil and Gas Could Affect the Economy - Research Paper Example This paper tells that the use of oil and gas may continue to change and affect the economy, dependent on how it is used within various regions of the world.   If this resource continues to fluctuate, it can lead to either a recession in the economy or growth and expansion of various regions. The use of oil and gas is no longer one that is based in different regions of the world. It has now become a dependent resource from every region, with most resources coming from regions such as the Middle East and being outsourced into different places of the globe. Each of the areas that produce oil and gas first has to find the natural resource through an oilfield that can continue to produce the right demands for various regions of the world. The current demand has led to most oilfields producing an average of 260 billion barrels a year, some which produce as much as 25 billion barrels a day. As the gas and oil continue to be produced, it leads to instant fluctuations with pricing. The equa tion that is used is based on the amount of oil and gas that are available for different regions of the world, specifically with estimates of how much oil and gas can be recovered from the selling prices of the oil and gas. For example, if not as much oil and gas can be produced from an oilfield, then the prices will begin to rise in the economy and will alter how much one spends on the amount of gas or oil for their needs. The main effect that the oil production has on the world economy is based on a rise and decline of pricing and production. As the rise of oil demands continue, there is the inability to continue with the amount of production that takes place through the oil that is available. The geological constraints and technological problems are making it so that there are limitations in the amount of production. The result is that political influences and other factors begin to affect the economy by raising prices and creating different ways to find oil.

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