Oil Future in a Financially Unstable Europe
How is the European debt crisis going to affect the oil trade and business in the continent? This is the question that many of the people engaged in oil business have been asking after the beginning of the financial problems in Europe in 2011. The answer might appear to be quite complex because it is yet unknown what is actually gonna happen with the European commodity and stock markets. Nonetheless, a prediction by leading European economists indicate that the future of oil might not be that bright in the second largest oil consumer in the world – the EU.
Firstly, the commodity market might reject a further expansion of the oil business. The deficiency of capital and the reduced trade due to the economic problems of Europe might lead to significantly less demand for oil from international retailers such as Shell, the Russian oil giants and Arab providers. Even though oil would remain largely consumed, its use for commercial and industrial purposes might reduces. Many businesses have already decided that in the current economic climate, they are ready to spend more money and once and buy solar equipment or wind equipment for their facilities and thus reduce their energy expenses in the long run even being obliged to pay a lot for the beginning of such a venture.
In terms of general consumption, oil would also reduce its influence over the market. However, the demand would decrease slightly simply because people would still need transportation which for now only oil dominate as a source of energy and fuels. Even small businesses, such as providers of office cleaning supplies and other media-sized enterprises would continue to use oil because they would not have the necessary capital to go green. This is the reason why while with larger corporations and certain rich governments oil might reduce in popularity and despite the economic crisis, it would remain strongly consumed by small business and general consumers.
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