The world has been a spectator to many wars that have taken place over the past several centuries. in fact, there were many revolutions which swept across the world over the same interval of time in our past. Ever since industrialization began and the automobile revolution started, there was significant demand for the crude oil used as a fuel for the new vehicles. it would be surprising for some to know that the price of a barrel of crude oil, back in the year 1972, was only three dollars.
The sweeping development of science and technology across the various continents, along with rapid economic expansion of the developing world, has put lot of pressure on oil drilling companies worldwide.
In the beginning, oil drilling companies were very small, forced to concentrate only on certain geographic regions. over time many of these have grown into multinational corporations that span the world and make huge profits. The world started to experience an increase in demand for crude oil and the relative number of oil drilling companies soon increased. Before long, crude oil prices began to be controlled by the oil drilling companies themselves, and the entire world was at the mercy of the prices they set.
Since that time, major events have affected the world, with far-reaching consequences for crude oil prices. this was especially true in 1973 due to the start of the Yom Kippur war between Israel and an alliance between Syria and Egypt. this was a very destabilizing war that soon engulfed the entire region of the Middle East. Since the Gulf countries had by then become major oil producing and exporting countries across the world, crude oil prices saw a very large increase. this was felt all over the world, before long, production of crude oil decreased and oil drilling companies were forced to increase prices. Since then there have been other events, like revolutions in Iraq as well as Iran, which have greatly affected oil production across the Gulf and brought about a corresponding hike in crude oil prices.
Many other international events that followed also had a profound effect on crude oil prices, which have combined in recent years to damage the global economy. Events like the economic recession in 2007 and Middle East unrest in 2011 have brought back those haunting memories of spiraling oil prices from many years ago. this is a grim reminder that crude oil is a major player that determines the future of the world economy. though several steps have been taken by organizations and even entire countries to regulate crude oil prices, major events like these tend to spoil such efforts. thus it remains to be seen what is in store for a future global economy so dependent on fossil fuels.