With a population more than 15 % of the world and high rates of economic growth , India has become one of the important consumer of energy resources. In the year 2006, India was the sixth largest oil consumption country of the world. The worldwide credit and financial crises have slowed India’s significant economic growth especially in its manufacturing sector. Due to this crunch, the GDP growth rates have turn down in 2007 from 9.3 % to 5.3 % in the last quarter of 2008. Despite of this slow economic growth, India's energy demand continues to rise.
UAE is the second largest economy in the Arab region. Between 2004 and 2008, the economy increased by 145% to reach 261.4$ billion. On the contraire and in result of slump in the world oil market, the nominal GDP decreased by 12% to become 230$billion. Inflation: Inflation in the UAE has settled down in the range of 1.3% to 3.2% in the years 2000 to 2003 and right after it increased. Consumer price inflation increased to become 11.7% in 2007 and 11.5% in 2008.
With demand being higher than the actual amount of supply, prices kept rising reaching a peak of $140 a barrel in 2008. (Wright, R. T., & Boorse, D. F. 2011). 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).
The rate of discoveries of large oil and natural gas reserves has been on the decline for the past 40 years (Wilson & Burgh 2007). Fuel is the highest operating expense faced within the transportation industry. Without smart planning companies may become unable to remain competitive or economically viable in the market due to the rising cost of fuel (Sowinski 2013). In the late 20th century additional costs would generally be pushed onto the customer but as competition has increased in the transportation market this would lead to the customers taking their business to cheaper firms that offer the same service. This is where the role of the transport manager comes into ... ... middle of paper ... ...s in Victoria’, BP, Viewed 20th March 2014 Motormouth 2014, ‘Fuel Prices And Petrol Prices Australia’, Motormouth Pty Ltd, Viewed 20th March 2014 Sayigh, A 2012, ‘Comprehensive Renewable Energy’, Elsevier Ltd., Amsterdam, The Netherlands, Viewed 20th March 2014, Science Direct database.
"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. The oil industry is making an immense profit.
According to eia.doe.gov the U.S. imported roughly between 4,000,000 and 4,500,000 thousands of barrels of oil in 2010. All this boiled down means that the U.S. imports more than half of all its oil. And at the current rate the U.S. spends roughly $13 million dollars on oil per hour. Furthering its impact on our economy the NRDC found that roughly 1/5 of our trade deficit stems from imported oil. Every day the U.S. loses $390 million to foreign oil, money that could be spent on the United States’ infrastructure, or helping to get the U.S. out of its recession.
According to the Transportation Statistics Annual Report of 1996, transportation has become... ... middle of paper ... ... all-powerful entity in the global economy. Due to the fact many of the involved countries are politically unstable, it seems strange our own government has not pressed forward with further research on alternative fuels and has not increased the Corporate Average Fuel Economy rules in cars for years. President Carter was on the right track, but Reagan undid any progress that may have been made. We are still so reliant on OPEC, which stems from our dependence on oil. I have discussed why this is so and the past should show us that volatile prices cause many problems: economic, political, and environmental.
Recently, President Bush traveled to the Middle East to observe the war in Iraq, the situation in Israel, and talk to the Saudi’s about oil prices. In a quotation from a CNN article, Mr. Bush exclaimed (26): "Oil prices are very high, which is tough on our economy. I would hope, as OPEC considers different production levels, that they understand that if ... one of their biggest consumers' economy suffers, it will mean less purchases, less gas and oil sold.” This bold statement by the president shows how important control of oil in the Middle East is. However, only 17% of oil consumed in the U.S. comes from the Persian Gulf states. The question then becomes: why is the U.S. so keen on having sway over countries with oil in the Middle East?
Natural gas continued to grow in the early 1990s despite of the entire staggering bust that was caused by the plummeting world crude oil p... ... middle of paper ... ...understandable surge effects through the worldwide monetary precinct put the hamper on economics movement. Therefore, oil and gas prices succumbed. Oklahoma was continuing to rank near the top in both oil and gas manufacture in 2009. A likeness of the 2007 and 2009 industry anatomy show some interesting unemployment phenomenon. First of all, the overall level of jobs fell among both the wage and salary workers and the self-employed; the relative decline was much deeper among the self-employed (-11 percent) than the wage and salaried (-3 percent).
Chevron operational and strategic business restructurings: Chevron has started to streamline its downstream operations, investing in the more profitable upstream ones which include oil exploration and production, particularly because of the slimming margins in the refined products. The last year’s budget showed approximately 85% to the upstream business, while only 15% to the downstream business, which is now expected to face even more shifts in 2014 making it 92% to 8% respectively. Nearly 2000 jobs, representing 1... ... middle of paper ... ... CVX stock analysis as per above information, it becomes pretty clear that CVX stock and generally all other energy corporations are losing their value. For a bullish market and optimistic investors, the idea might be favorable in the sense that since the CVX stock prices have hit rock bottom in the recent weeks, it might lead to swing upwards due to the upward momentum of all the Energy stocks. The trap here however is that the CVX stock price, although they look underpriced, acceptable as value for investment, the earnings against such stocks have been in a downward loop since years, and the trend continued in year 2013.