'Crude oil is now cheaper than oil- Explain with the help of a case study within 150 words.
Answers
Explanation:Oil is one of the most important sources of energy contributing 27.3% of global primary energy consumption in 2015. As per BP Statistical Review of Energy (2016) oil & gas together contributed 38.8% of the global primary energy consumption in 2015, 0.4% higher than 2014. Oil being a finite resource it is not going to last forever. At the end of 2015, oil reserve to production ratio stood at 50.7, means at current production rate oil would last about 51 years. Therefore, scientists are working overtime to explore alternate energy resources. On the other hand, geoscientists are constantly working on finding out new sources of oil and exploring unexplored reserves. Unconventional oil like tight oil and shale oil are becoming techno-commercially feasible to produce and market. In fact, in the recent times unconventional oil and gas sources significantly changed the dynamics of global oil & gas trade.A boom that began in the early 2000s reached a dramatic drop in crude oil prices in June 2014. But, this decline in crude oil price is not a new phenomenon. Before the dramatic oil price drop in June 2014, there had been many other fluctuations in crude oil prices. Average crude oil spot price reached $52 per barrel at the end of December 2016 from a low of $29.8 per barrel at the end of January 2016. Crude oil price is very much on a recovery path and it is expected that it may stabilize in the range of $55-$60 per barrel in 2017.The main reasons of crude oil price fall include rapid expansion in unconventional supplies, shift in the OPEC policy after a period of high prices, market sentiments, and rising demand in Asia-Pacific. Recent past fall in crude price still continues to impact global economic activities, especially in the producing and consuming countries. Fall in crude price has far reaching consequences beyond demand and supply scenario.
hope it helped you:)
if it fulfilled your need pls mark it as brainliest