For many obvious reasons, one could state that you grow crops and you drill oil. Yes, this is very much true, however there are a completely different operational aspect that comes with this. The oil industry is dominated by a few oil producing countries. Where farming exists all over, oil is something that is subjective to where deposits are found. Countries like that of which join to make OPEC, have an international hold on oil prices, not because of space or climate, but because their country is rich in oil reserves. This leads to an unfair advantage to the minority of the world’s countries that are able to produce the majority of oil. However, although crops grow better depending on what type and in which climate, it is an industry that allows many countries to participate …show more content…
As previously stated, oil producers are able to shift the price more so than other industries. Just recently the world has seen a unique occurrence as a result of this. As countries start to produce oil at a more affordable price, the market share of OPEC is in danger of being reduced. To combat this, OPEC started producing millions more barrels of oil everyday. The increase in supply has drove the cost of oil down worldwide. This is a relief to consumers who had grown weary of high gasoline prices. However, this has also put a huge strain on other oil producers to keep up with the lowering cost of oil. This has caused a portion of oil producers to shut down. This grip on the market, allows OPEC power. As prices for oil goes down, oil producers hold their breath to see how long this will