My observations on the Oil and gas sector

[F-14]

Responsible in ancient times for starting spontaneous fires the Oil has become along with commerce the Life blood of the world economy today nothing is Independent of oil every thing is one way or the other Linked to the Oil and gas sector the first commercial exploration of oil was conducted in the United states of America by the standard oil company of Texas this spared a search for oil around the world in the late early 1900’s the British struck major finds in the fertile crescent area in what is now Iran ( then called Persia ) through the ANGLO-PERSIAN oil company these fuelled speculation that there Might be Oil deposits across the border in what was then Ottoman Arabia the Hunch was right following explorations APOC (the ANGLO-PERSIAN oil company) found major finds in what is now Iraq at the Binging of the 1920’S oil was discovered in large quantities in eastern Europe and the USSR. The second world war both the axis and the allies where in a hurry to secure oil supplies the Nazis did this by securing Romania but it was the allies that had massive oil supplies from the Middle east as most of the area was controlled by the British in the post War era the Middle east became a leading player in the Global Energy map with Huge reserves of oil being found at every new field , the emirate of Bahrain along with the Kingdom of Saudi Arabia became Among the First countries to become rich due to what is now known as “Petro dollars” along with other major oil produces of Africa, Asia and America came together in Riyadh and formed the Organization of Oil Producing and exporting countries called OPEC this organization controls the oil pricing mechanism of oil by either Increasing or decreasing the production of oil . the oil boom that followed the Post war years came to an end in the 1970’s when the Arab members of the Opec cartel suddenly shut the Production of oil from their refiners in protest to the American support to the state of Israel in the October war hitting the world market hard
During the 1980’s through the 1990’s oil remained at a condition of status quo the price of oil sky rocketed following the September 11th attacks due to fears of reduced consumption from the worlds biggest consumer how ever with just two years of the attacks every thing had steadied back to former levels with the start of the current finical melt down the Price of oil once again sky rocketed along with other commodity prices it ( oil ) touched the 145$/bl mark prompting many to predict “ that even if oil settled at a lower price it would be at the 100$/bl mark” things had reached a boiling point on the oil sector and had started to hurt the global economy such as the urgency of it all that a joint producer consumer summit was called by the USA and was hoisted by the UAE the meeting was an impasse with both the producers and consumers not ready to reach a compromise but as suddenly as the boom had began it started it has now reached at record lows of 35 $/Bl this lows have exposed a few kinks in the Price control mechanism of Oil and gas it has also seen the decline of Opec as a major player in fixing that price of oil and there has also been a gradual shift in production emphasis to south west and south east Asia along with the discovery of Non conventional Oil deposits worth Trillions of barrels in Canada and Venezuela and with the Emergence of Russia as a major supplier cum producer of oil and gas has shifted the emphasis from more “traditional” areas like the middle east as for a prediction it is best left to time .