The article is quite justified as it approaches to the problem of increasing oil prices through the eyes of the bigwigs of the industry. These people have showed their concern towards the future of the petroleum industry as theprices are constantly increasing and the man-power is decreasing. Tis in turn is resulting in shorter supply. The article also supplies statistical information about the industry hence it succesfully explores the risks and benefits of the petroleum price increase. The rticle signs off with the note of future hopes of the people who are involved in the industry and relates this o America’s growth and success.
Oil industry is such a field that has no end. Oil supply is constantly increasing with the increase in vehicles and industries all over the world. If we see critically, oil is the blood of the world economy. So this industry has no saturation and no stability. The oil prices increase constantly which keeps the oil possessing countries sit on gold mines. But the demand is more and the supply is less in this industry as there are not sufficient number of people who are contributing to the labour. People involved are not getting paid properly and there is a lot of corruption involved in the field. The prices are constantly increasing but the wages are not. This makes people less inclined to work in this field. Other than that if we see from a business point of view, the capital is also very much important for the growth of the industry. The capital that the companies invest in the oil industry also need to get proper benefits and returns of their money. They invest to make money so that they can make the most of it. The increased need of petroleum and related products has given rise to the need of better technology and machinery to be incorporated in the oil corporations. It also needs to employ more people to meet with the needs of labor. The companies pay for these facilities through the capital that the investors provide to them. This enables them to take risks and innovate more to deliver better quality and quantity of products. The capital that the companies invest also serves in the marketing and transportation of the goods which results in better turn-overs and increased economic support to the industry. Hence the importance of man-power and capital is evident.
But there are points to be concerned about. The industry experts are very much concerned about the continuous price rise of the products. According to Mabro, Robert, (2006), the continuous rise in the petroleum price indicates that there is some corruption going on in the industry as the products are not being supplied to the required places. Even if it supplied, the prices are higher than the regular routine. This is making people innovate new techniques to replace petroleum products with cheaper and better products. This in turn is causing huge damage to the industry. People are losing jobs as companies are cutting costs. This is leading to people’s repulsion from the field of petroleum. The labor shortage is another nail in the coffin as it is making the production insufficient and the supply is scarce because of this. The products are existing but they are not being supplied to the right places. The scarcity is leading to disastrous effects for other industries and overall economy. The increased petroleum prices lead to increase in every single thing available in the market and it affects the general people’s lives as well. The inflation increases and makes it difficult for the regular people to survive.
However, government should take proper measures to stop the prices from rising. The most important step to be taken is stopping the black-marketing of petroleum and related products. Proper investigation should be done to determine the causes of price rise and rectify them. The government should review and rework on the policies of the oil industry policies. There should be strict restrictions on the illegal supplies of the products. This can only happen when people are made aware of the pros and cons. When normal people of the society will know the reasons and benefits of the matter, they will be more particular about the issue and this will help in curbing the malpractices a lot. The joint effort will then result in a melt down in the prices and lesser rate of inflation.
Mabro, Robert, (2006), Oil in the 21st century: issues, challenges and opportunities. Oxford Press. p. 351.