GROWING

CONCERNS
WITH OIL
REPORT
2022

PRODUCTION
& INFLATION
 PAGE 1

BACKGROUND
WRITTEN BY GAGE GLASSNOR

The Organization of the Petroleum

Exporting Countries Is a permanent
Intergovernmental organization that
began in 1960.It Is in charge of
unifying policies regarding oil
among member countries.They are
also In charge of ensuring fair and
stables prices when It comes to oil
and the producers of said oil.

ISSUE AT HAND
The oil Industry has had drastic
changes over the years with the
pandemic and Increasing Inflation.
More recently than ever Inflation
has been an Issue that Is causing
companies to look at how to cover
the decrease
Demand for oil has Increased
now that things are getting back
to normal after the pandemic.
The war between Russia and
Ukraine has put a strain on oil
across the world due to
sanctions.
Increasing inflation reduced
consumer spending.
With inflation on the rise
production was decreased by 2
million barrels a day.
 PAGE 2

THE
STATISTICS
At the start of the pandemic in 2020, oil prices
had dipped Into the negatives however, during
this year 2022, prices reached as high as $140
per barrel.
With the war between Russia and Ukraine oil
reached $76 per barrel at the start of the year to
over $110 per barrel on March 4, 2022
Saudi Arabia, one of the the most prominent
members of OPEC stated that the rising costs
have made the break-even point of the energy
commodity to be $80 per barrel.

PROPOSAL
TO RESOLVE
1)Find or create a partnership with neighboring countries to fill their oil
reserves to make money and reduce costs per barrel.

2) Invest Into new technology and equipment that could locate areas with
a higher abundance of oil that can yield a higher outcome and cut
production costs.

3) Assist In combating Inflation by reducing the amount of borrowed

money within the economy.
 References
Breakeven crude oil production costs around the world.
Market News & Forecasts, Charts, Broker Reviews. (n.d.).
Retrieved October 27, 2022, from
https://www.fxempire.com/education/article/breakeven-
crude-oil-production-costs-around-the-world-646083

Home. OPEC. (n.d.). Retrieved October 27, 2022, from

https://www.opec.org/opec_web/en/index.htm

Malik, H. (2021, December 3). OPEC+ unchanged with oil price

near Fiscal Breakeven. Tellimer. Retrieved October 27, 2022,
from https://tellimer.com/article/opec-unchanged-with-oil-
price-near-fiscal-bre

Q.ai - Powering a Personal Wealth Movement. (2022, October

21). Oil prices 2022: Here's what investors need to know.
Forbes. Retrieved October 27, 2022, from
https://www.forbes.com/sites/qai/2022/10/20/oil-prices-
2022-heres-what-investors-need-to-know/?
sh=36858b3b73e0