Shipping crude oil may be riskier than drilling it. In fact, tankers are generally pictured by the media as the evil oil monster. Is this fair or not?
New York City, NY (PRWEB) March 26, 2013
The article, “From Dead Dinos to Your Car—the Economics of Petroleum” published recently by FinancesOnline.com reflects why Obama is pushing diplomatic visits to the Middle East. The United States, the most powerful nation today, can’t ignore the importance of this oil-producing region with forty-five percent of the country’s oil being imported. The article shows how far crude oil is intertwined into our economy, from medicines to plastics and to clothing and energy, and the United States must thread a delicate line in foreign affairs to ensue our energy needs are met. But not all oil comes from the Middle East, as the article points to a surprising number one and “friendly” source of our crude oil.
Moreover, although it is easy to paint the OPEC countries as a big organization with absolute powers to manipulate oil prices, the article shows its vulnerability. It turns out raising oil prices or hoarding the supply can be as detrimental to OPEC members as to importing countries. Despite the mantle of monopoly, oil prices may still subscribe to the law of supply and demand that favors all the people.
Likewise, how the oil business is played out across the supply chain is explained. Not surprisingly, the Big Oil calls the shots in collusion with the oil-producing countries. With little means to meet Big Oil executives or the oil magnates and voice their frustration, many American consumers express it at the gas stations, the most visible icons of the greasy business in their neighborhood. The article points out why this is silly and unfair. Buying gasoline may be hard, but selling it is even harder, as one Forbes article has pointed out. Why then do gasoline stations keep selling at a loss? It’s a trade formula that many retailers practice, the article says.
Incidentally, shipping crude oil may be riskier than drilling it. In fact, tankers are generally pictured by the media as the evil oil monster. Is this fair or not? posits the article.
Lastly, the article points out that the world has reached peak oil, the point when the supply slides down to the last drop. The question is, are people ready for this? And who is to blame for this greasy mess that Americans find themselves in?
The answer can be found in “From Dead Dinos to Your Car—the Economics of Petroleum” published by FinancesOnline.com.