Our Oil Problem

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Nowadays oil is one of the most important goods in the international market and the world economy. Most of the world uses oil to power their cars, heat their homes and runs expensive machines, and as more of the world modernizes with more cars, and more people, the price of oil continues to rise. Within the last 12 months the price of oil has risen by 30% and is well over the $22-$28 target range set by the Opec (Organisation of the Petroleum Exporting Countries) oil cartel. This paper will address various questions on the market for oil and gasoline and explain the situation of this market from the start of the 20th century.
When you first look at the graph for the United States’ oil supply you see some shocking results. Ever since the 1970’s the United states’ oil production per day has been steadily falling. In 1984 and 1985, the nation saw hope in the oil market when Texas started pumping out more oil than most of OPEC’s 11 other countries. During that time Texas produced more than 74 million barrels of crude oil from the ground, making it one of the 15 largest oil pro...

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