Abstract
"You have been asked by a major oil company to analyze the likely developments in the oil market over the next five years. Carefully explain the theoretical underpinnings to any predictions you make. How might your predictions influence the future strategic direction of the oil company? Explain your reasoning" The process of industrialization and the subsequent move to a post-industrialized economy that occurred worldwide for over a century, has guaranteed continual oil consumption growth (excluding rare periods following infamous oil shocks), due to the economies' structural dependence upon this energy source for the production of electricity, as an industrial input and as fuel for transport. Since 1971, world oil consumption has rise from 2.3 million tons annually to 3.8 million today. This inevitably leads us to wonder whether oil supply can keep up with demand, or rather, will growth in demand for oil decrease as nations seek to diversify their energy requirements in a tighter global market.
