Essays24.com - Term Papers and Free Essays
Search

Oil Monopoly-Explore America’s Hegemony

Essay by   •  March 13, 2019  •  Coursework  •  3,699 Words (15 Pages)  •  26 Views

Essay Preview: Oil Monopoly-Explore America’s Hegemony

Report this essay
Page 1 of 15

Oil monopoly-explore America’s hegemony

1.1 Background:

Last Sunday, when I was watching television at home. There is a piece of news reporting that the oil production in US has been beyond many other countries. In my thoughts, the big oil country such as Russia and Saudi Arabia’s oil production has exceeded America for many years. However, according to the data. The US defeat Russian in 2016 and become the secondly oil production country. So what are the reasons and factors which lead to this kind of situation. This article will illustrate them.

2.1 Introduction:

Oil plays important roles not only in most countries’ development, but also in the world economy. As it is known to everybody, America has taken the position of hegemony in world oil control and influences world oil price. This essay is mainly talking about how American oil price influences the world economy. First, this essay begins with the shale revolution which boosts world oil supply and eventually causes oil oligopoly. Second, America gradually stood out in world oil market. In this process, America played games with many oil suppliers, which has a dramatic influence to oil price. Last, this essay will show how dollar is pegged to petro and dollar further affect the oil price.

3.1 the shale revolution and technology

Us oil production exceeds Saudi Arabia, but Saudi Arabia remains one of the most important factors in global oil prices. According to the international energy agency, oil production in the United States will peak over the next few decades. Cheap oil prices are likely to stop the shale oil field investment, plus Russia economic sanctions on the geopolitical, OPEC failed to agree on high-cost producers outside Vienna production factors, such as international oil prices may fall further. The hegemony of the United States in today's international oil market is inseparable from the shale revolution.

George Mitchell, now revered as the "father of the shale revolution", did not want to change the world. He was just trying to save his gas company. Mitchell betting on shale gas, Mitchell energy has several mining lands here in north Texas large shale formations, but no one can steadily from this dense rock mass exploitation shale gas, people can only from the place where is shallower than shale gas. Energy companies, such as Exxon and chevron, which are much bigger than Mitchell, have given up on similar shale gas exploration and have turned their sights on overseas markets such as Africa.

The methods which Mitchell energy take do not have too much difference with other companies, they mix different liquids, gels, sand and other chemicals, put the mixture into dense shale, shale craze, and see if I can make to the escape of gas in shale, collected by drilling), technology of horizontal well drilling is used (vertically into the shale, then level, shale to extension methods like the letter L).

31, subordinates, Nicholas Steinberg, found that on shale fracturing to try again, added a set of the error of water mixed formula, make drilling has a high content of shale gas; Then he went to the party, and from work for a rival friend, know that they use hydraulic fracturing, such as high-water content, other land exploitation of natural gas in Texas, just haven't tried on shale formations.

Mr. Steinberg and his decision to use this "folk prescription" to add more water to the fracturing of the Barnett shale rock again. Steinberg's team tested for almost a year, during the improved method (for example, using a smaller sand to make smaller crack on shale), finally in 1998 a day from a drilling data to see the success. On the Barnett shale rock, there has never been a drilling rig like Steinberg’s, which stabilizes the shale gas that is so stable. With the shale gold mine, Mitchell's flagging energy has begun to recover.

3.2 Data1:

By 2001, small and medium-sized companies such as Mitchell energy had a daily gas production of 365 million cubic feet, a 250% jump since 1999, a rarity in energy history. Also in 2001, Mitchell energy was eventually bought for $3.1 billion by another equally sized energy company.

As Americans continue to improve the technology that comes from Mitchell's energy, adventurers have been able to combine more advanced science with hydraulic fracturing and horizontal well technology.

Data2:the picture of the influence caused by shale revolution

[pic 1]

Data3:These desperate private adventurers have profited from shale, and America has benefited hugely from the shale revolution. Oil production in the United States, including shale oil from 3 million barrels per day in 2008, up to 2015 barrels per day at the end of 2015, the overall oil's far from the peak of 60.3% in 2005, dropped to 27.9% in 2014, the lowest in nearly 30 years. In 2014, the United States has replaced Russia, become the world's largest producer of natural gas, shale gas accounted for more than 25%), is expected to fundamentally change the energy market pricing and trade patterns. The shale oil and gas industry, which barely existed 15 years ago, has created 2 million jobs. In December 2015, the shale industry boomed in North Dakota with an unemployment rate of 2.8 percent, the lowest in the country.

3.3 AS-Model to analyze the elasticity of conventional oil and unconventional oil

[pic 2]

The price elasticity coefficient of unconventional oil 1.6. The elasticity coefficient of common

oil price is 1.2, which lead to America’s production of oil is much more than those countries which did not experience shale revolution.

4. The stages of how America become the oil supremacy

4.1 Oil plays an important role in the development of America’s economy, and it was regarded as strategic resource and its special position in the struggle for power. In the incitement of profits, America oil enterprisers turned their eyes to all over the world to seek for oil resource. The process is divided into three stages.

Stage one, the foothold of America oil enterprisers in Gulf region. By signature Red Agreement, America broke the monopoly of Britain successfully, and entered Iraq, which made America gain a foothold in Gulf region.

Stage two, the expansion of America oil enterprises. For the sake of controlling strategic resource and setting up its superpower in the world, America broke red agreement and entered Saudi roundly which resulted in all square between America and Britain.

Stage three, the establishment of America oil supremacy. For the sake of cold war and seeking the supremacy of the world, America government toppled the government of Iran and took over the British oil position in Gulf region.

...

...

Download as:   txt (22.7 Kb)   pdf (689.1 Kb)   docx (464.4 Kb)  
Continue for 14 more pages »
Only available on Essays24.com
Citation Generator

(2019, 03). Oil Monopoly-Explore America’s Hegemony. Essays24.com. Retrieved 03, 2019, from https://www.essays24.com/essay/Oil-Monopoly-Explore-Americas-Hegemony/88909.html

"Oil Monopoly-Explore America’s Hegemony" Essays24.com. 03 2019. 2019. 03 2019 <https://www.essays24.com/essay/Oil-Monopoly-Explore-Americas-Hegemony/88909.html>.

"Oil Monopoly-Explore America’s Hegemony." Essays24.com. Essays24.com, 03 2019. Web. 03 2019. <https://www.essays24.com/essay/Oil-Monopoly-Explore-Americas-Hegemony/88909.html>.

"Oil Monopoly-Explore America’s Hegemony." Essays24.com. 03, 2019. Accessed 03, 2019. https://www.essays24.com/essay/Oil-Monopoly-Explore-Americas-Hegemony/88909.html.