In terms of what has happened, it is simply a case of supply and demand. New oil fields have been found across North America and with high supply comes low demand which drives the price of oil down.
When we consider why this happened, one organisation is extremely important OPEC, for years OPEC has operated as a cartel controlling the price of oil but now it isn't. However, it is still the major force in the energy game. Some people say OPEC has let the oil price fall because although it will hurt them, it will hurt other countries more.
One country the oil price has certainly affected is Russia and it has affected them in a very negative way. Russia was a major economic player before the oil crisis but its reliance on fossil fuels particularly oil has seen them weakened economically and politically for Putin. It is therefore not much of a surprise that Putin has resorted to invading Ukraine to divert his people's attention from where the real problems lie.
As well as affecting individuals and other countries the oil crisis has been seriously detrimental to the renewables market. Some people that the falling oil price was manufactured by OPEC in order to cause mass consumption of oil and therefore less consumption of renewables. Hydro-electric power seems to be a loser in this crisis but it seems renewables will survive the crisis as they are important to the future energy market.
So, is this the beginning of the end for oil? Let me know what you think in the comments below.
