Demand For Crude Oil Has A Significant Impact On The Global Economy

Crude oil is an essential fossil fuel and it is of utmosthas already peaked while some still think we are
importance to the transportation sector. With highalmost close to peak oil. In the year 2002, oil was
energy density, stability, easy storage and lesserconsumed globally four times as much as it was
effects on the environment on burning, crude oil isnewly discovered. The world oil usage was estimated
being consumed on a regular basis throughout theat 82.63 million barrels per day during the first quarter
world. There is a growing demand for crude oil in theof 2005. According to the International Energy
developing nations such as China and India .It isAgency (IEA) demand for crude oil was 85 million
believed that China will outrun U.S as the world'sbarrels per day during 2008 and the oil demand
largest consumer of oil after few years.forecast for 2010 would account for 86.6 million
According to IEA or International Energy Agency, it isbarrels per day.
forecasted that there will be a rise in the globalNew oil projects will be introduced in the coming
demand for crude oil as the developing countriesyears to meet the growing demand for crude oil. The
have increased the usage of crude oil. The usage ofworld oil demand is expected to increase to 105
global crude oil is increasing at a slower pace year bymillion barrels per day during the year 2030. Out of 20
year with an upward moving trend. In 2010, themillion barrels that are being consumed per day by
developing countries like China and India are mostAmerica, 25 percent is used for burning on the roads.
likely to witness a robust GDP growth in crude oilThe International Energy Agency predicts that the
demand. Year after year, growth in demand forworld will hit peak production between 2013 and 2037
crude oil can be witnessed in the world's largest oilbut the U.S Geological Survey, Hubert's old employer
consuming nations such as US, Canada, UK, Germany,has a given an optimistic view that the peak in oil
France, Italy, Spain, India, China, Japan, Saudi Arabia,production is 50 years away. The estimates released
Iran, Russia, Brazil, Korea and Mexico and theseby the USGS periodically depict the amount of oil that
nations account for about 70% of the global demandis still available in the world. Saudi Arabia is the one to
which is a sign that the global economy will surelydominate with the world's largest oil reserves and the
improve.second to top the list is Canada, which moved from
The demand for crude oil in the developing countriesthe 20th position accounting for 180 billion barrels of
has always been met by the world's largest oilrecoverable oil.
producing nations but if the needs of the developingWorld's largest oil reserves can be found in Countries
countries increase beyond the predicted numbers,such as Saudi Arabia, Canada, Iraq, Kuwait, Iran,
there is a possibility of shortage in crude oil evenRussia and Mexico, which help in successfully meeting
though peak in production hasn't been reached. It isthe demand for crude oil in the global market.
believed by few scientists that world oil production