Modern History of Oil
Natural resources are classified as renewable resources and non-renewable resources. Petroleum or crude oil is a fossil fuel first discovered in the United States of America before discoveries occurred in the African, Asian and South American continents. The Organization of the Petroleum Exporting Countries (or OPEC)was formed as a cartel of thirteen countries to regulate the supply of petroleum sold in old markets worldwide. Refined petroleum has a variety of uses overtime that humans have become heavily dependent on. Examples include gasoline, kerosene, and diesel used in the transportation sector. However, it is a non-renewable resource with supply expected to be depleted in the next fifty years, and it is also known to be a big contributor to pollution affecting the global climate. While oil industrialists and lobbyists are pushing to open more restricted areas for oil exploration (e.g. the Arctic), developed countries are pushing for Green New Deals to help reduce the heavy reliance on petroleum to combat the widespread environmental concerns being felt worldwide. Examples include Euro pushing for electric vehicles by 2035 and Biden seeks to make half of new U.S. auto fleet electric by 2030.
Questions:
- Share TWO takeaways you have about Oligopoly and Cartel market structures from the video.
- What do you think about the response of OPEC given the lockdown-induced fall in demand for oil at the beginning of the COVID-19 pandemic?
- Given the uneven response of masks and vaccine mandates worldwide, will the cartel structure of OPEC withstand this crisis?
- Do you think the Arctic will be explored for more petroleum OR will reusable energy sources like solar, wind & electric energy take over given the push for Green New Deals by developed countries?
- Self-reflection: By 2035, do you see yourself driving a gas-emitting vehicle or an electric vehicle or a hybrid? Do explain your choice.
Sources: Geo History: Petroleum – modern history of oil, OPEC: About us, OPEC: The destabilizing impact of COVID-19, Electrek: Europe wants to ban new gas cars by 2035. Why not sooner?, Reuters: Biden seeks to make half of new U.S. auto fleet electric by 2030, Photo by Zbynek Burival on Unsplash