Oil Research Paper Example | Topics and Well Written Essays - 1250 words - 1

Oil - Research Paper ExampleHence, forming a potential market to the oil-producing states where mostly they work to have the final say regarding the commoditys price. However, it is not that America lacks its own reserves, but their yield is inadequate to provide for its large population that commonly consumes approximately 6.6 billion barrels annually (Bruce, 2007). This prompted the state to seek other sources of oil that will manage to cater adequately for its consume. America yielded to 21% drop in other states compared to its direct dealing operations. This was in the form of establishing corporations that will specialize in either oil drilling or having other respective(a) roles in ensuring adequate attainment of oil in the oil rich states, and in turn benefit hence using diplomacy (Hitchcock, 2010).Currently, America produces 21 billion barrels that normally provide 6.6 billion barrels of oil meant for its populations demand annually. According to conservationists, this a nnual consumption is adequate in providing America for 3.5 years, but only through proper application of other substitute saving methods besides effective technology especially in the send off sector. However, studies indicate Americas oil consumption trend continues to augment, where by the year 2020 according to Ghouris statistics would read 24,900, 2,596, 2,321 thousand in USA, Canada and Mexico respectively. This was a equivalence with the year 1999 oil consumption statistics having 19,519, 1,943, 1,970 thousand in USA, Canada and Mexico accordingly (Ghouri, 2001). The augmenting demand trend has prompted America to depend on imports from other states, since the reserves, that it possesses does not equal its consumption. This is because the demand is outdoing the already diminishing reserves production. Studies indicate that American shore reserves are diminishing, which leaves the state with no alternative except offshore drilling, which is expensive. This is due to the with child(p) necessitated