Changes

The oil and gas business is cartel led by the organisation of petroleum exporting countries (O.P.E.C), this cartel has periodic production restrictions in which they dictate how much the countries that adhere to the OPEC can produce. These restrictions can be basing on various factors such as economic climate. The restrictions will cause market deficiencies and affect the price of the oil.

The oil and gas business is cartel led by the organisation of petroleum exporting countries (O.P.E.C), this cartel has periodic production restrictions in which they dictate how much the countries that adhere to the OPEC can produce. These restrictions can be basing on various factors such as economic climate. The restrictions will cause market deficiencies and affect the price of the oil.

It’s important to also attribute oil price fluctuations to geo politics of the world. A case study can be pointed out that in the 1930s there was a fall in the oil prices which eventually picked up after the world war. The world war caused a disruption in the supply of the oil which caused a market shortage and yet the demand was still high. This can be seen in the graph below.

It’s important to also attribute oil price fluctuations to geopolitics of the world. A case study can be pointed out that in the 1930s there was a fall in the oil prices which eventually picked up after World War II. The war caused a disruption in the supply of the oil which caused a market shortage and yet the demand was still high. This can be seen in the graph below.

[[File:Economics_Fig-2.png|thumb|300px|{{figure number|2}}Crude oil price trend between 1870 and 2005.]]

[[File:Economics_Fig-2.png|thumb|300px|{{figure number|2}}Crude oil price trend between 1870 and 2005.]]

According to the United Nations report on standard of living, the standard of living per house hold has generally increased and this implies that a greater number of people in the world have access to the basic decent living condition. This therefore implies that a greater number of people use oil or its related products and implies that the demand for the oil will increase and this can result in an oil price change.

According to the United Nations report on standard of living, the standard of living per house hold has generally increased and this implies that a greater number of people in the world have access to the basic decent living condition. This therefore implies that a greater number of people use oil or its related products and implies that the demand for the oil will increase and this can result in an oil price change.

In light of this great discrepancies it’s also important to acknowledge that the rate of discovery of oil and gas in this present day, does not much up to the world demand. This is a constricted supply trend. This therefore causes a conclusion that due to the ever growing demand and constriction in supply, the effects of this unbalanced condition spirals into a series of actions both legal and illegal. On the legal tuff , Governments and oil companies set policies and tools of administration to counter this strain by placing major checks and balances for instance in Uganda the setup of the Petroleum authority and other regulatory frameworks.

In light of this great discrepancies it’s also important to acknowledge that the rate of discovery of oil and gas in this present day, does not much up to the world demand. This is a constricted supply trend. This therefore causes a conclusion that due to the ever growing demand and constriction in supply, the effects of this unbalanced condition spirals into a series of actions both legal and illegal. On the legal end, governments and oil companies set policies and tools of administration to counter this strain by placing major checks and balances for instance in Uganda the setup of the Petroleum authority and other regulatory frameworks.

Illegal actions such as hoarding and black market dealings which worsen the market conditions which further cause the prices to be unstable.

Illegal actions such as hoarding and black market dealings which worsen the market conditions which further cause the prices to be unstable.