Oil is arguably one of the most important natural resources on Earth. All the world economies depend on this valuable resource in order to grow and meet various needs, both industrial and domestic needs. At the beginning of 2018, unfortunate trends were noticed when the US oil flooded European market. Even though the competition was reduced and oil prices fell gradually in Europe, an economic crisis was experienced. The easy availability of this commodity made companies lay off their workers as prices were lower than normal. The companies could no longer support a majority of their staff as the profits from oil were barely meeting cost of production. Most oil companies were unable to survive as others went bankrupt and left the market.
OPEC countries have always regulated oil prices. However, in 2018, there has been an uneven trend in the prices of oil. They kept increasing and decreasing at a very fast rate. This was an eye-opener to the global societies, and especially oil producing countries, to intervene and put in place measures to curb such scenarios. However, there was little that could be done as a lot of factors work together to determine the prices of oil.
The decline and increase of oil prices have several consequences. Some experts believe that a decrease in oil prices is good as consumers will be able to purchase gas at a lower price, this helps people to have extra money to spend on other products in the market. But not everyone believes that the lower costs of oil are beneficial to the economy. There are those experts who argue that oil prices should be maintained at higher rates. This is because higher prices of oil help the dollar to flow back to the economy. This assists to plug budget deficits. It also facilitates an increase in global economy that allows extra traveling, and shopping.
Talos Energy is an oil producing company that extracts oil in Texas and its surrounding regions. It has decades of experience in both offshore exploration and production, which is mainly carried out in the Gulf of Mexico and near the Gulf Coast. Apart from oil production, Talos Energy is deeply rooted in helping the communities where it carries out its operations.
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