Oil Production Assignment
If Saudi Arabia was to increase its production and quantity of oil produced each year it
would have a huge impact on how companies are able to produce their goods and how their
prices would change dramatically.
If oil production was to increase in Saudi Arabia that would be amazing for the entire
country, but the rest of the world’s economy would end up suffering. At first there would not be a
big difference but as time passed the billions of dollars that are in the oil market would start
going more to one country than the others. This would start to put the other oil firms out of
business because they are not able to produce the oil at the same vast rate or the prices that
Saudi Arabia would be able to give. This would control every other countries economies
because they would be reliant on the oil from Saudi Arabia because everything uses oil like cars,
Machinery, Factories, etc.. This would also make consumers have to decide to either buy from
domestic sellers or the larger producers of oil.