Why Are Oil and Gas Important?

Since the mid-1950s oil has become the world’s most important source of energy and is used to not only supply energy to power the nation but to also heat homes, provide fuel for vehicles and is an integral part in the manufacturing process.

97% of oil is used in transportation, whether that is in our everyday cars, aeroplanes or for transportation of goods, making it vital in everyday life.  Oil is refined to manufacture almost all the chemical products you can think of including, plastics, fertilisers, detergents, paints and even medicines.

Examples, where we use oil are:

In schools

·         Rulers

·         Crayons

·         Pens & Ink

·         Book Coverings

·         Binders

In Healthcare

·         Coating for Pills

·         Creams

·         Syringes

At Home

·         Contact Lenses

·         Cosmetics

·         Clothing

·         Nail Polish

·         Deodorants

·         Shampoo

·         Carpets

Out Shopping

·         Shopping bags

·         Credit cards

·         Plastic milk bottles

·         Egg trays

For building

·         Roofing tiles

·         Pipes

·         Insulation

Other uses:

·         Tyres

·         CDs

·         Videos

·         Crash Helmets

·         Football Boots

·         Phones

·         Computer Hardware

As you can see oil and gas are extremely important when it comes to living as a society. In fact, the oil and gas industry has also created hundreds of thousands of jobs in the economy due to the supply and demand for products like the above. The UK alone produces around 2 million tonnes of oil and gas each week and without oil and gas, there will be a lot more unemployment.

As there is such high demand in oil and gas, oil and gas prices tend to fluctuate depending on whether there is enough supply to reach the demand. Oil and gas prices will rise if the supply is low and will decrease if the supply is higher. The same goes to say for if demand increases prices go up and if it decreases prices will go down.

The UK in recent years has banned all single use plastic which could hit the economy hard when it comes to jobs. We may even see a fall in oil and gas prices too, however, this will all depend on the manufacture of new alternatives of course.