The World Oil Market Assignment Example | Topics and Well Written Essays - 1000 words

The World Oil Market - Assignment Example A tight balance between supply and demand can lead to high prices that cause both higher expenditures for consumers and higher incomes for producers. In economics, exhaustible resources generally follow the rule that the rate of growth must equal the rate of interest in order to reach industry equilibrium. However, due to the unpredictable character of future oil supply and demand conditions, oil prices do not generally follow this rule. Most of the time, it exhibits backwardation wherein future prices are lower than current ones. Future demand is hard to predict because it is difficult to foresee changes in energy technologies and it takes years for consumers to switch to other resources should prices go off the roof. On the other hand, investment is expensive and risky and it takes a while before production supply turns to high capacity. Oil prices also behave unexpectedly since the market is responsive to speculative pressures, operational constraints, and political conditions. Hu rricane Katrina, by reducing gasoline supplies (which is chiefly derived from crude oil), became one dramatic factor that caused oil prices to skyrocket in 2005. The storm reduced oil production, transportation, and refining capacity--it paralyzed major oil and gasoline pipelines that carried supplies down from the Gulf Mexico and took down offshore oil platforms. Power outages also caused problems in oil and natural gas distribution in many areas. The large drop in supplies caused oil prices to rise. Additionally, consumer expectation contributed to the demand component. With the hurricane retarding oil production and restricting supplies, they expected prices to rise. They immediately increased the demand by buying gasoline, hoping to fill up their tanks before prices start to rise. Reduced supply and increased demand caused oil prices to increase dramatically, as shown in the graph below: 3. Analyze the structure of the world oil market & identify what kind of market structure it has.   The world oil market structure is oligopolistic since the market is dominated by a limited number of suppliers. An industry is said to be oligopolistic if few supply the majority of the output and if those suppliers are interdependent. In oil production, about 50 percent of the output and 70 percent of the reserves are controlled by a cartel. Production is handled by both the public and private sectors. However, oil production is just one aspect of the market-converting and refining it to other consumer products is another facet of the total world oil industry, one which has its own dynamics and regulations. Worldwide supply and demand determine oil prices, with great influence from OPEC. On the supply side, OPEC provides most of the world's supply and normally acts as a semi-cartel, influencing oil prices by maintaining excess capacity. It also tries to maintain oil prices at its target level by setting quotas or production limits for its members. On the other hand, non-O PEC suppliers have generally limited reserves and typically behave as price takers. OPEC's policy in recent times is to control crude oil inventories and reserves in consuming nations in order to balance the market.

Spiritual Belief Essay Example | Topics and Well Written Essays - 1000 words

Spiritual Belief - Essay Example In patience recovery, faith is important in contributing to the beliefs of the individual thus their ability to recover. The spiritual needs assessment of a relative to a patient helped reveal several demographic factors that may help devise proper psychological therapies for the patient thereby resulting in faster recovery. The assessment revealed that the patient had ardent faith in the Christian faith and was a staunch catholic. His beliefs were founded in the teachings of the Roman Catholic and so was his family’s. As a Christian ascribing to the doctrines of the faith, the respondent neither drinks nor smokes. Additionally, he portrays a social and loving personality often assisting those he interacts with whenever possible thus validating his support for the patient. The patient portrayed strong belief in the teachings of the faith thereby opting to live as per the demands of the Catholic Church. From the assessment, it became evident that one’s spiritual beliefs are important in determining their subsequent personalities. Religious beliefs contribute to the development of a personality within an individual as the interview portrayed. Most of the questions in the assessment tool sought to investigate the relationship between the faith and the social life of the individual. The respondent’s responses revealed a close relationship with the faith greatly influencing the social lives of the respondent (Reilly, 2011). Since the respondent is a catholic and that, the catholic teachings abhor alcoholism and cigarette. The respondent thus selects his social groupings carefully always avoiding smoker ad alcoholics. His religious beliefs thus influence the type of respondent’s lifestyle, such toxic substances as alcohol and cigarette affect health. By avoiding such for whichever reasons, one reduces chances of infections (Manent, 2011). Religious beliefs and the degree of beliefs in the teachings of a faith is a key factor that helps inf luence the type of lifestyle an individual leads. In this relation, religious beliefs thus influence the propensity of an individual being susceptible to certain lifestyle diseases such as those caused by alcohol, cigarettes and other religious contrabands. The assessment went well thereby revealing several important factors of religion that affect the health of an individual. Just as stated earlier, religion influences the relationship among people. The respondent’s belief in his faith that discourages discrimination resulted in an objective interaction between the respondent and the interviewer. The interaction was free and extremely interactive with the respondent opting to take the opportunity to pass some of his teachings to the respondent. The personal interaction between the respondent and the interviewer portrayed advanced development and maturity thereby leading to free flow of information from both sides. Such thereby contributed to the effectiveness of the study, w hich revealed several important facts about the relationship between religious belief, and lifestyle that is an important determinant of lifestyle diseases. Besides the personal relations between the respondent and the interviewer, communication between the two was effective a factor contributed to by several factors. The effectiveness of the interview ensured that the interviewee responded to all the questions and exhibited sincerity that improved the effectiveness of the study. The respondent owing to his inclination to his faith committed to the study and provided detailed answers to the questions in the tool. The free flow of information between the two permitted the respondent to provide examples of some of the issues he raised thereby developing factual relationship betw