How Does Oil Affect Are industry?

Question

I am confused about this topic

Answer 1

High oil prices have a trickle affect. Consumers will spend less on other items and in-tern cause the nations purchasing scales to plummet. Just watch and see. The high gas prices will cause this country to go into a deep recesion or even a nasty depreesion.  The avaerage person works now to pay bills, morgage, utilities, etc. The way its going, the nation will now have to purchase items with more credit than they ever have. They won't be able to pay the credit card companies, and the effect keeps going on and on. The trickle effect. I wish the President would step in... NOT. He's probably making millions.

Answer 2

everthing in the United States moves either by truck or train or both. Hi cost in fuel raises cost to deliver. This cost is passed on to the consumer. It means higher prices for most everything.

Answer 3

Western Civilization, especially USA is hopelessly, irreversibly addicted to oil. The substance that gave birth to the modernuity and convenience of today will be the destroyer of life as we have grown accustomed to.

Answer 4

You're probably confused because you misused the word "are." I believe you meant to say "our." I don't mean to be mean, but that is the wrong usage of the word.

Answer 5

It is very simple, economics 101, supply and demand. We pay $65 dollars a barrel while China pays $12 dollars a barrel. The oil speculators on Wall Street set the prices due to instability in the mid east with Israel, the war, lack of drilling in America, and the lack of refining capacity in the U.S. which causes gasoline to spike the most. We need new super refineries to bring fuel back down to the two dollar range. If we do this we will be prepared for disasters, shortages and changes in fuel blends. All of these will save us trillions at the pump. Until Americans demand new refineries and nuclear power plants we are heading back to the stone age. FACT! I have been to Anwar and it is a wasteland, nothing more.

Answer 6

Technology in the 21st century depends on oil to run.  Without it and its many products, our modern day conveniences would cease to run and/or be manufactured and sold.

Let's look at the typical refinery products: bunker oil, diesel fuel, light oil (lubricants), kerosene, aviation fuel, naphtha, gasoline.  All these, and more (like commercially sold gas), come from refining (making lighter) crude oil that comes from wells in the ground.  Let's see where in industry these are used.

Bunker oil is used to power steam ships...both merchant and cruise.  Large, heavy things from overseas would not get to the States without them.  

Diesel fuel powers a lot of heavy equipment, like locomotives, generators, 18 wheelers, and that Mercedes Benz diesel.  Light oil keeps moving parts lubricated; so they don't over heat and break down.  

Kerosene is used for heating, lighting, cooking, and possibly transportation.  Aviation fuel, which is like kerosene in many respects, is used to power jets across the skys.  This includes commercial and military jets; so national defense depends on crude oil as well as industry.  

Napththa is used in making other products and for shoe polish, solvents, campground cooking burners, and other fire using equipment.  Gasoline is used in engines ranging from the model aircraft engine all the way up to reciprocating aircraft engines putting out 1550 horsepower on takeoff.

In a word, just about everything that burns, heats, or moves uses some form of crude oil products.  And crude oil goes into making a lot of other products...plastics for example, or man-made fibers.  This is why just about everything, even things not using crude oil, is affected by crude oil prices and supplies.  

For example, those organically grown strawberries at the supermarket came by truck...diesel engine truck, rolling on well lubricated wheels, and having plush petroleum based seat covers in the driver's cab.  Those yummy strawberries would not get to the market without crude oil products.

So, to answer your question, oil affects industry in just about every way imaginable.

Answer 7

high cost of oil = increased cost of producing goods = less money for consumers to spend = slowdown in our economy