Statistics indicate that in 2011, the total world production of oil was 86,954,000 barrels per day. The total world petroleum consumption in 2010 was 87,135,100 barrels per day. The U.S.’s petroleum production per day is 7,841,000 barrels per day. This indicates that the demand for oil is exceeding the supply of oil, and various means have to be enacted to either meet this demand or contain it.
Fact1. Oil prices are impacted by the global political situation. On November 21, 2012, the ceasefire between Israel and Hamas resulted in a lowering of oil prices.
Fact2. An oversupply of oil also is a determining factor of the price or oil. When new reserves are found or there is an increase in the stockpile release of oil, the price goes down. Â The price of oil is controlled by oil cartels such as OPEC.
Fact 3. Â On March 31, 2010, Obama announced plans to open the Eastern seaboard and the western coast off California to offshore drilling for oil, signalling the end of two federal moratoriums which previously banned such activities.
Fact 4. Â The development of hydrocarbon resources in shale and technological advances has made it possible to raise the production rate of oil.
Fact 5. Â It has been quoted by Obama that the U.S. possesses 2 percent of proven oil reserves but consumes 20 percent of global production. The U.S. cannot become energy independent unless there is conservation in place and a major expansion of renewable resources.
Fact 6. A BP rig was drilling the Macondo exploration well, about 41 miles offshore of Louisiana when there was a blowout and fire on April 20, 2010 which killed 11 workers and resulted in an oil spill recognized as the U.S.’s largest, environmental disaster.
Fact 7. BP was indicted for the oil spill in a federal criminal court case. BP has agreed to a pay a sum of $4 billion in fines for polluting the waters of the U.S.
Fact 8. Â BP has spent more than $14 billion in cleanup costs and more than $9 billion to individuals and businesses.
Fact 9. Concerning pollution from oil drilling, the Malawi government has taken the stand to stop oil drilling if the Malawi Lake is threatened in terms of its ecological system.
Fact 10. In Norway, environmentalists have protested against the drilling of oil offshore as it could impact one of the richest, fishing grounds in the world.