The petroleum engineering industry has long been associated with economic growth and development, and according to Ben Ebenhack, the chair of Marietta College's petroleum engineering program, this correlation is no coincidence. In fact, he argues that many of the economic outcomes associated with the industry are a direct result of its unique and inherently lucrative nature. In this post, we'll explore some of the ways in which the petroleum engineering industry impacts local and global economies, as well as some of the challenges it faces along the way.
1. The petroleum engineering industry has a significant impact on economic growth and development.
2. Fluctuations in oil prices can greatly influence the overall economy.
3. Increased oil prices can lead to higher production costs and consumer prices.
4. Decreased oil prices may result in job losses, reduced investments, and slower economic growth.
5. The petroleum engineering industry's dependence on oil makes it vulnerable to these economic outcomes.
According to the International Energy Agency, the petroleum industry accounted for 33% of global energy consumption in 2019.
Ebenhack explained that the petroleum industry operates within a volatile market, where fluctuations in oil prices can greatly impact the economy. This is because oil is a crucial resource for various sectors, such as transportation, manufacturing, and energy production. When oil prices rise, it can lead to increased production costs and, in turn, higher prices for consumers. Conversely, when oil prices decline, it may result in job losses, reduced investments, and slower economic growth. The inherent nature of the industry's dependence on oil makes it susceptible to these economic outcomes, which are often viewed as unavoidable consequences.