What are the Role of Oil and Gas in Global Business

What are the Role of Oil and Gas in Global Business

The top two components of global trade are crude and refined petroleum. Oil is both the life blood and poison of the global economy. So how important is oil and gas for the economy?

If we think about the control of resources, oil and gas itself provides power and influence for those that control it. From this power and influence shapes political agendas, economies and the market space. Oil and gas is not just energy world, it’s clearly one of the most important sources of energy for the world today. It also happens to be the most important feedstock for many components that are manufactured and enjoyed by many of us today that we really to not pay much attention to.

However our reliance on oil and gas in energy purposes is continously shrinking. What’s alarmimng is, there aren’t any known alternative forms of energy that can fully replace oild and gas. This makes the demand for this enrgy sources go up in prices. The demand of oil and gas will continue to grow. If prices of crude and oil increases, it depresses the economy while simultaneously adding to inflation. More money spent on oil means lustful spending on everything else. In the other hand weakening demand will cause the price to start falling at which point, oil becomes a powerful reflationary force.