What are the real consequences of oil resources worldwide depleting?
They may be not yet doing that, but they sure as hell will someday in the future, and considering that I wondered about the bigger impact on our economy and further on possible social repercussions. Even if at this time this might still be far in the future, or not so far in the future, it is worth looking at it in detail in time.
This is not primary about the fuel. It will be mentioned as it is one of the derivates of crude oil, and an overview will be available as a appendix to this text.
Rather this text will go about all the other products that are produced in a refinery. There use and how widespread they are in our economies.
Supposing the price of crude oil would go up because the supply's go down, this would not only have consequences for the fuel price but also for a lot of other products. If the price of the raw material goes up then at a certain time, the price of the refined products also will go up and as a result if those continue going up or if the initial price increase was to much the price of the end product will also go up. That is how a market works.
A price raise of the initial product can bring a cascade of price raises, and/or a lesser profit for those involved in the whole process. This a delicate balancing act. If the end seller sells the end product at a price to high, less people will buy it, meaning that he will have less income. On the other hand if the selling price stays equal but the price at which the seller has to buy the product goes up, his/her profit margins will go down, and when this difference becomes to small, he might not be able to make a living without raising the price, even if this means that less people will buy it.
Important questions are raised about the economic development of developing countries around the world, as well as the social implications in the richer countries and the developing countries. Also this has far reaching consequences for international relationships. Not only water can be fraught over but also dwindling resources. This could bring social unrest. But first the overview of products, without that, a full view is not even possible.
2. From Crude oil to more refined products
What products and materials are derived from crude oil ?
In what products are they used ?
And further on is there any idea how big there influence is in our world ?
First things first. After some looking up, because its been a long time since school, a primary overview of base products derived form crude oil is the following: