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Well the effects are profound.
The western economic model is build on non renewable cheap fossil fuel energy.
Take away the 'cheap' part and it should be clear to all but those living under a stone that this economic model will be increasingly difficult to maintain.
Wiki User
∙ 13y ago
Wiki User
∙ 13y agoIt will be a great income for the gulf states and the other oil producing countries. But, for most of the western world it would be a price increase of every single good, because it needs to be transported and that costs oil. So what I am saying is that it will be a good thing for some countries and a bad thing for others.
A2. A secondary effect will be an acceleration of research into other sources of liquid fuels, such as bio fuels. The higher the price of crude, the more worthwhile the alternatives become.
Liquid fuels at the moment have a great energy density per litre/kilogram, and this will encourage further investment in that direction. In addition there is a huge developed infrastructure which will encourage research in that direction.
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Why do high oil prices affect food prices?
transportation of food takes oil to get it around to your local grocery store therefore driving up food prices.
How has the current shift in oil prices affected the stock market?
The current shift in oil prices can have both direct and indirect effects on the stock market. Here are some ways in which the change in oil prices can impact the stock market: Energy Sector Stocks: The most direct impact is on energy sector stocks, including oil exploration and production companies, oilfield services providers, and energy infrastructure companies. When oil prices rise, the profitability and prospects of these companies tend to improve, leading to potential stock price increases. Conversely, when oil prices decline, the profitability of these companies may be affected, potentially leading to stock price declines. Inflation and Interest Rates: Oil prices are closely tied to inflation and interest rates. Rising oil prices can contribute to higher inflation expectations, which may prompt central banks to raise interest rates. Higher interest rates can impact the stock market, particularly sectors sensitive to borrowing costs such as housing and consumer discretionary stocks. Consumer Spending: Oil price changes can affect consumer spending patterns. When oil prices rise, it can lead to higher fuel costs, which can reduce discretionary income for consumers. This can impact consumer spending on other sectors, such as retail, travel, and leisure, which may indirectly affect stock prices in those industries. Global Economy: Oil is a crucial input in various industries and plays a significant role in global trade. Changes in oil prices can impact the overall global economy. Higher oil prices can increase production costs for businesses, leading to lower profitability, reduced economic growth, and potentially impacting stock markets worldwide. Geopolitical Factors: Oil prices are influenced by geopolitical events and tensions in oil-producing regions. Conflicts or disruptions in major oil-producing countries can lead to supply disruptions and volatility in oil prices. Geopolitical uncertainties can create broader market volatility and impact investor sentiment. It's important to note that the relationship between oil prices and the stock market can be complex, as there are numerous other factors at play in the financial markets. The specific impact of oil price changes on the stock market can vary depending on the overall economic conditions, market sentiment, and individual company dynamics.
Is OPEC to blame for high gas prices If so why?
OPEC wants gas prices to be higher so that its member nations can profit more from oil.
How did John Rockefeller monopolize the oil business?
John D. Rockefeller revolutionized the oil industry by reducing prices for the consumer, monopolizing the petroleum industry. ! Silence Do Good.
What is administered price inflation?
when the government administers or subsidises prices of essential commoditites like rice, oil or even oil and electricity but the global prices are high, then it implies that these domestic prices would take some time to respond or adjust to global prices and in this process, the rate at which the prices respond would lead to inflation implying that it is transmitted through global prices.
Impact of high oil prices in domestic air travels?
The advantages are that people like George W. Bush get rich when prices are high but the disadvantage is that you can't afford it any more.
Rising Prices of crude oil in the international markets will have impact on Indias balance of payment segregation - Discuss?
Rising Prices of crude oil in the international markets will have impact on Indias balance of payment segregation - Discuss.
Why do high oil prices affect food prices?
transportation of food takes oil to get it around to your local grocery store therefore driving up food prices.
How is oil important to Venezuela econonmy?
Venezuela's oil-based economy illustrates the affects of overspecialization. When oil prices are high, its economy is strong. When oil prices drop, its economy weakens.
Why are gasoline prices are low now?
Gas prices are so low now because the cost of oil has dropped around 40%. So that has been passed on the consumer. The countries that have a lot of oil for some reason haven't been able to keep prices of crude oil high as they once did (OPEC). Also the US is getting a lot of oil from Canada and is also producing more for itself. You can not ignore the impact or renewables either.
How do you deal with high oil prices?
I just reduce travelling by my vehicle.
Why was the national speed limit introduced?
In response to high oil prices.
What impact has the Iraq War had on humanity?
the price of oil rises and as a results , the prices of all the things increases
What of the following was a major problem of the United States in the late 1970s?
High gas prices and oil shortages.
How did the initial growth of the oil industry during this era impact Texas state government?
The texas surveyors office was established to regulate and control oil prices.
Did high oil prices in the 1970's eliminate poverty in southwestern Asia?
Southwestern Asia is the sub continent of India. Nevertheless, what ever geography is used, poverty remains a fact of life in most of Asia. High oil prices usually benefit the old oil cartel and other oil producing nations.
How much did crude oil prices rise in 2008?
The highest that the crude oil prices ever hit was USD$147. You can read about it and the reasons why the prices went that high here : http://english.aljazeera.net/focus/2008/09/200898133143509358.html
