Importance of oil and gas industry for the world

K. Zhilinskikh

15722

Importance of oil and gas industry for the world

Energy resources has a great influence on modern economy. The level of development of the productive forces of each state is largely determining by the scale of energy consumption. The fact that over 70% of the world's mined minerals relates to energy isаproof of important role of energy. The main types of energy resources are coal, oil, natural gas, hydropower and nuclear energy.

In countries such as Germany, the United Kingdom, the share of oil and natural gas accounts for 55-60 % of total energy consumption, in the United States and Japan - 75-80 %. With the collapse of the Soviet Union, oil and coal’s extraction in Russia is significantly reduced, and quotas on the export of oil and gas abroad increased. In 1993, oil production in Russia amounted to 350 million tons, in 1994 - 332 million tons, and in 1995 will amount to 325 million tons. The advantages of oil and gas as sources of energy are relatively low cost of production, the possibility of waste-free processing to produce multiple fuels and chemical raw materials. However, oil and gas resources are limited. They are much smaller than the supply of coal, oil shale and tar sands. At the same time, oil and gas production is much higher than other fossil fuels. The high level of oil consumption in the world is the basis for the assumption of the imminent exhaustion of oil reserves. Some scientists have suggested that the exhaustion of the world's oil reserves are expected by the end of the XXI century.

Now, when oil is the main type of energy raw materials, its economic and political importance in the world is huge. The ability to organize the export of oil and petroleum products allows states, which have their own sources, to achieve significant progress in economic and social development. However, fluctuations in world oil prices, the situation on the oil market led to serious changes in economic policy for all countries: as the oil-producing states and countries whose industry is basing on imported crude oil.

Аfter the Second World War, oil prices was dictated by international oil cartel, which is dominated by US oil monopolies. The cartel was buying oil from its exporters, developing countries, using exclusively low prices and selling these oil products to importers at relatively high price. In 1960, developing countries created Organization of the Petroleum Exporting Countries (OPEC) to protect their political interests. The OPEC includes Iran, Iraq, Kuwait, Saudi Arabia, Qatar, Abu Dhabi, Venezuela, Indonesia, Libya, Nigeria, Algeria, and Ecuador.

In 1972-1973, the demand for energy raw materials on the world capitalist market has strongly increased, so OPEC countries raised the price of oil quadrupled. Rise in oil prices has resulted in disruption in the supply of oil for number of capitalist countries, and further to its shortage. These events are called energy or petroleum crisis. Western governments have taken a number of measures to reduce their dependence on oil imports. For example, saving oil, the use of various other forms of energy (solar, nuclear, geothermal, etc. ). Under the pressure of these factors, the oil price in the world market has declined. In 1980, the average level of world prices for oil was $ 190 per one m³. At the beginning of 1995, the world oil price fluctuates within a range of $ 120-per one m³.

As for Russia, we completely provides our need in oil. Moreover, Russian oil is supplied in the country near and far abroad. Due to the sale of oil and natural gas in the world market, Russia gets a significant amount of currency that is spent on the purchase of a variety of industrial and food products.

In ourdays, oil and gas take dominant position in the global energy market. Compared with coal and other energy sources, oil and gas are not only economic value, but also affect the political relations and the strategic development of countries.