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Term Paper on The Effects of the Oil and Petroleum Industry Prices on the Economy
<Name>
University of Maryland Global Campus (UMGC)
ECON 203 Principles of Microeconomics
Professor: <Name>
<Date>
, <Name> Term Paper 2
Introduction
The oil and petroleum industry, or the oil industry for short, occupies a crucial position in
the global economy. As a key source of energy, petroleum products are essential for
transportation, heating, and electricity generation. The global economy is influenced by oil
prices, affecting almost every industry directly or indirectly. Fluctuations in oil prices can create
both positive and negative effects on various sectors, including energy production,
transportation, manufacturing, and consumer spending. Depending on the direction and
magnitude of these price changes, the economic effects can be substantial overall (University of
Maryland Global Campus, 2023, p. 126). In this report, we will give some background on the Oil
Industry, facts about crude oil, suppliers, price per barrel, and what that means to the world of
consumers in the end.
Literature Review
The oil and petroleum industry has had a mark in history dating back to ancient times for
lighting, and heating purposes. There is also a semi-solid form of petroleum known as bitumen
or asphalt for agriculture, buildings, Greek fire, lubrication, medicine, waterproofing, and more.
As time went by, new processes were created that improved the refining of natural gas and
petroleum, which further fueled the demand (Library of Congress, 2023, para. 1-6).
It was in the mid-1800s when the modern oil industry started rising with the search for
new oil deposits and the drilling of oil wells to form oil companies. The United States was not
the only country at this time to start either. The other countries included Canada, Iran, Mexico,
Russia, Saudi Arabia, Trinidad, and Venezuela (Library of Congress, 2023, para. 7).
The Pennsylvania Rock Oil Company, founded by George Henry Bissel in 1859, drilled
the first successful oil well in Titusville, Pennsylvania. Soon after in 1870, the Standard Oil
Term Paper on The Effects of the Oil and Petroleum Industry Prices on the Economy
<Name>
University of Maryland Global Campus (UMGC)
ECON 203 Principles of Microeconomics
Professor: <Name>
<Date>
, <Name> Term Paper 2
Introduction
The oil and petroleum industry, or the oil industry for short, occupies a crucial position in
the global economy. As a key source of energy, petroleum products are essential for
transportation, heating, and electricity generation. The global economy is influenced by oil
prices, affecting almost every industry directly or indirectly. Fluctuations in oil prices can create
both positive and negative effects on various sectors, including energy production,
transportation, manufacturing, and consumer spending. Depending on the direction and
magnitude of these price changes, the economic effects can be substantial overall (University of
Maryland Global Campus, 2023, p. 126). In this report, we will give some background on the Oil
Industry, facts about crude oil, suppliers, price per barrel, and what that means to the world of
consumers in the end.
Literature Review
The oil and petroleum industry has had a mark in history dating back to ancient times for
lighting, and heating purposes. There is also a semi-solid form of petroleum known as bitumen
or asphalt for agriculture, buildings, Greek fire, lubrication, medicine, waterproofing, and more.
As time went by, new processes were created that improved the refining of natural gas and
petroleum, which further fueled the demand (Library of Congress, 2023, para. 1-6).
It was in the mid-1800s when the modern oil industry started rising with the search for
new oil deposits and the drilling of oil wells to form oil companies. The United States was not
the only country at this time to start either. The other countries included Canada, Iran, Mexico,
Russia, Saudi Arabia, Trinidad, and Venezuela (Library of Congress, 2023, para. 7).
The Pennsylvania Rock Oil Company, founded by George Henry Bissel in 1859, drilled
the first successful oil well in Titusville, Pennsylvania. Soon after in 1870, the Standard Oil
