BUSINESS RESEARCH

FALL SEMESTER 2015 / SECTION 5

BUSINESS RESEARCH
BUSN350 Assignment

Prepared by:
Fatima Al Mazmi
ID: S0000000463

Prepared for:
Dr. Mohammed Arif

BUSINESS RESEARCH

Peak oil is a problem which poses danger to the world at large. It is a phenomenon which
if it occurs a great deal of the world population will suffer due its tremendous effects.
The idea of oil decline in a country is itself scary tale and if what Peak oil theorists are
insinuating concerning the future of the oil sector is to be believed then one has a reason
to worry about the future. Who on earth can imagine a world without oil? Every sector
relies on energy to run smoothly and the theory about an expected decline in oil makes
one to wonder about what will happen to economies if it really turns out to be true.
The reactions concerning such expected shortage of oil by countries will differ
depending on where the country is in terms of export and import. It is a precautionary to
critically analyze the consequences of the crisis suggested by Peak oil theorists. It is
fundamental to consider such a possibility so that world economies can put in place
measures to mitigate the effects of the anticipated disaster.
Considering case studies of countries which have gone through crises of almost the same
nature as the one suggested by peak oil theorists, it is easy to predict the consequences of
the disaster and the reactions of various countries. Countries will react differently to the
same situation; some will resort to using their military power to conquer nations with oil
while other countries will dictate what to do in such a crisis. Another lot will try and
utilize their social way of life to deal with the problem at hand.
The oil crisis if it occurs will lead to suffering of populations. With the different
reactions to the crisis, it is evident that the measures put in place by countries might not
be friendly. For example, since some countries will try and expand their territories

BUSINESS RESEARCH

through military action, then it is clear that people will die during such operations.
Famine and diseases will be inevitable since all sectors, including agriculture and health
sectors, rely heavily on energy to thrive.
In case peak oil occurs there is going to be beneficiaries and losers. It is undisputable
that exporters will try and maximize their wealth by increasing prices. It will actually be
pay day for exporters of oil and this is to the detriment of importers who are on the
receiving end. Importers will be competing for the scarce resource and the highest bidder
will be lucky because exporters will not care about what happens but will be
concentrating on maximizing sales.
Many countries will try and look for other alternatives to oil but it is an exercise which
requires patience since it might take even decades to come up with a perfect replacement
of oil. It is possible to find a replacement but it will take time and the effects of the
shortage will be felt by every economy. Adapting to the situation is difficult but since
there is no other option it is necessary for countries to come up with ways of coping with
the situation as it is.
Natural gas might seem to be a perfect alternative but it has its own challenges. A
combination of the various alternative sources of energy is recommended for countries to
survive the pinch of oil shortage. Switching to the various alternatives is not an
overnight event and it will require a great deal of time and resources. Energy is required
to put the alternatives into use. It is therefore appropriate where the energy used does not
exceed what comes out.