The oil market: players, challenges, and opportunities

Abstract

Growing concern over the ever-increasing price of oil makes investigating new approaches to oil policy necessary. In the last year the price of oil has increased sharply due to the instability and the political tensions in the Middle East. Such an increase in prices in a short time has significant implications for oil-dependent societies. It also means that major oil consumers like China and the United States invest in storing oil, which could result in more shortage and even higher prices. Although governments attempt to lessen their dependency on fossil fuel by investing in alternative fuels, in the short term they need to form strategies to cope with such unstable situations. New Zealand in this regard remains a unique case, with many underdeveloped oil reserves and a possible future as an active player in the international oil market.