The importance of petroleum in the global economy

The importance of petroleum in the global economy

Oil or oil is a viscous liquid that forms in the ground, and is known as black gold because many countries depend on it for its economy. The most prominent of these are the Gulf states, where oil is abundant and as a result of exporting oil to most countries, Arab countries. This is represented by the well-being enjoyed by its citizens. This is not confined to the Arab Gulf countries. There are other countries in the world producing and exporting oil, but the oil reserves in the Arab countries account for 50% . Petroleum is made up of hydrocarbons, in addition to a small percentage of all nitrogen, oxygen and sulfur, which is flammable. Therefore, it was used in antiquity for heating and lighting, and it became one of the most important materials used to operate machines and thus major factories. Derivatives are the basis of many machines, as well as transport vehicles.

Uses of petroleum

Used for the operation of cars and all means of transport, of gasoline, diesel and other such materials are petroleum derivatives. Used in some chemical products, and in the cement industry and pharmaceuticals as well. Is used to generate electricity, and this is one of the most important uses of petroleum, if it was not there was no electricity in the world.

The importance of petroleum in the world economy

The importance of petroleum is that it is the most important source of energy in the world, and it enters into an infinite number of industries, such as the manufacture of plastic, soap, gum, and other technological industries, so no country can dispense with oil, Gives economic power to oil producing and exporting countries. And after the Arab countries were the only oil exporter has become in recent years to play a role in the establishment of large investment projects that are profitable by marketing them within, and not rely on the export only, and this idea came after the observation of the United States control of most of the world’s oil reserves, Iraq has been the first to develop projects that rely on its oil reserves, and has already succeeded in these projects, especially in the sixties of the last century. The importance of oil globally and the necessity of making it an important economic and political force for the countries that own it, but this did not apply to all countries. Iraq and Libya faced wars and setbacks because of its attempt to control all the oil in each.