C/B/308. Oil Industry: The Issue of Price Changes and Scarcity of Resources

This paper is critically approaches the current issue of oil prices changes and the issue of the scarcity of oil resources. It is suggested that price changes cannot be explained by scarcity or by changes in scarcity. The main argument is based around the issue of whether as the scarce resources grow, it will affect prices in a free market, potentially leading to increase conservation by consumers, increased exploration for new reserved and increase use of substitutes. The frameworks of PESTEL and Porters five forces are presented to support the analysis of the oil industry. The author also considers the market structure and the supply and demand side of oil product. Recommendations and further discussion tries to solve the argument.