Case Study Example: The Finite Nature of Oil Production

The film concentrates on the finite nature of oil production. The oil reserves because the demands of oil are very high due to the high living standards of the people. The documentary analyzes four major points on oil crush.

The rate at which oil is decreasing is very fast

The value in the oil is too little to be seen

Control rate of production

Petroleum sectors are blooming at high speed. The industries have made huge profits in a short period. The main reason why this industry is growing rapidly is technology advancement.

Advanced technology plays a significant role in this vast sector. It makes crude oil accessible within a short period. This is because with advanced technology areas with crude oil are easily detected. The detecting machines are cheap and available all over the world. Technology that is used to make machines make them stronger than the earlier used machines. The extraction process, therefore, becomes very easy and fast. This means that they can extract tons of crude oil within a short time because the demand is very high all over the world. The manufacturing and processing have also been simplified because the equipment and machines are effective. This makes the process of purification take less time, and the companies make more sales than when they were using absolute technology. The machines are automated since they are made using advanced technology. They function without any inspection. This makes the operation process easier. Nevertheless, the rapid extraction of oil is causing its exhaustion. Crude oil is vanishing every single day.

The movie clearly explains what happens in oil business without any bias. My take is that the people interviewed for this video were not biased at all. The film portrays what happens in oil companies in the real world. The society is not noticing this because the oil companies are busy with extraction without considering the amount of crude oil that is remaining underground. Its exhaustion process is slow, and hence by the time, people will realize that crude oil is decreasing it will be over.

Crude oil is finite meaning that it could end. It is not renewable like how we renew papers. This source of energy takes millions of year to be formed using the process of decomposition. Its formation process is very low, and this means that it should be conserved and used sustainably. The dates of its composition date back to a fossil century. Despite the knowledge that human beings have about its non-renewable state, they are still misusing it in every chance. The oil companies are extracting it every chance they get so that they can make huge profits from its demands. The price of crude oil is very high, and it is sold both domestically and internationally.

There will be oil shortage in US future. This will eventually cause energy shortage. The decrease in oil supply will increase its demand hence increasing the costs. The costs of energy will be double. This will cause a recession in US economy. The prices of oil will be high like what happened in 1973 and 1979 when the prices of oil increased suddenly, and the American economy went into recession. According to the documentary, unless there is a reduction in fuel consumption because they rate of consumption is higher than the rate of production, there will be a long-term recession in the United States.

Work cited

https://www.youtube.com/watch?v=odCZpBPfFQk