The cost of oil rising and its effect on consumers.
The attribution of rising oil prices has in recent day’s fell at the feet of the President of Turkey, due to his threat to turn off an Iraq’s pipeline due to the Kurdish independence vote (www.bbc.co.uk). This is the highest the price has been since 2015, with deals by OPEC and Russia cutting supply whilst demand has decreased. This is good news for the oil industry, but what about consumers?
So far, prices have not changed at BP, RD Shell and Exxon, due to investor scepticism, rendering consumer impact to a minimum. However, this has impacted the renewables market significantly, due the rising demand of oil and the relatively fixed cost at the consumer end.
There is discussion of soon reaching ‘peak oil’ (the point in which maximum extraction is reached and from there oil extraction enters a terminal decline). This eventuality could be reached by the growing renewables industry taking over, which is shown to overtake other energy sources (nuclear for example). This is an eventual aim for governments around the globe, but for now the oil industry is still one of the most prominent industries, (4 oil companies in the Fortune 500 top ten).
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