CAS EC 102 Chapter Notes - Chapter 2: International Energy Agency, Demand Curve, Light Crude Oil
12 Mar 2014
School
Department
Course
Professor
6
CAS EC 102 Full Course Notes
Verified Note
6 documents
Document Summary
Oil is a commodity whose price fluctuates dramatically. In the 1970"s, oil price was low and stable. Price of arabian light crude was a barrel. Formation of a cartel in oil, reduced supply made it a barrel. Heavy impact on world economy; dropped growth from 5% to under 1% Price went up to and then in the 1980"s and continued to rise. Heat and pressure crack each 42 gallons of crude into 44 gallons of gasoline. The world has been using more and more oil. The world used more than 20 million barrels a day in 1960. Increased to 87 million barrels a day by 2011. Petroleum use is almost 1. 2 million barrels per day. Us share has been decreasing but the absolute amount of oil usage per day in the world has been rising. In the 1960, us consumed almost half the oil used in the world everyday.
