Factors affecting Consumption and Production of Oil (environmental …
Factors affecting Consumption and Production of Oil
1992 Rio Earth Summit; created Kyoto Protocol to reduce emissions
emission quotas/carbon tax
Many countries that are rich in oil are politically unstable. Political instability can affect supplies and cause price increases.
With political instability in the Middle East, it raised the demand for oil and reduced the supply.Libya has had recent political problems and countries like Iran and Iraq are not totally stable. Nigeria has also fallen victim to terrorist groups.
North Africa, Libya with protests and controlling governments and Egypt with debts.
Gulf War- Prices increased during the Gulf War in 1991 but decreased again when the East Asian crisis reduced demand for oil
South Sudan was created from a civil war that was linked to the huge amounts of oil and energy
NGOs are becoming increasingly vocal in their fight against fossil fuels and promotion of green alternatives. With consumer pressure, governments and energy companies are likely to find alternatives.
South Sudan was created from Political Instability
Rising cost of living + decreased accessibility
Air transport getting less accessible as oil consumption increases as the oil prices increase
Loss of human lives
Iraq War over oil resulted in the deaths of over 4,000 US troops; does not even take into account Iraqi's who died to protect supply lines
Alternative energy sources becoming mainstream
Brazil: Most cars run on biofuel to lessen dependence on oil
Public health risks
China: High carbon emissions + air pollution from both transport (so oil specifically) and manufacturing plants cause over 1 million deaths annually
Oil spills + fracking liquid leakage contaminates water supply
40% of Nigerian oil ends up being stolen illegally for personal use by high ranking officials
BP Oil Spill
Barrels of oil leaked into the sea after a BP deepwater well ruptured in April, 2010.
Exxon Valdez oil spill
Raised concern about the wisdom of transporting oil in remote areas
poor infrastructure of pipelines can cause the pipelines to leak
glendive Montana Jan 17th, 2015, oil spill contaminated drinking water Yellowstone river
acts of sabotage
Leaked 140 gallons a minute, Caused by a bullet
the Pipeline was eventually shut, but it carried more than 15% of America’s energy
An act of sabotage on the pipeline in 1978 resulted in a spill of 16,000 barrels of oil. A hole was blasted in the line with explosives at Steele Creek, near Fairbanks.
Destruction of fragile + previously untouched habitats
if the production is decreased the supply also decreases, therefore, the prices increase the resources scarce
higher demand means people are willing to pay higher prices for oil so more oil is produced as higher prices motivate oil companies to produce more
Egypt and Libya are resulting to less profits because of the political conflicts . So foreign investors want out.
India and China
Countries in central, eastern, and southern Europe are heavily dependent on imports from Russia.
Suez Canal Closure
look at oil spill effects