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Right from the early 2000s there has been a inflation on the price of the barrels of the crude oil. It was generally under $25/barrel but during the 2003 it raised up to $30/barrel. Due to the geo political events and natural disasters, the global oil market had a strong short term effect on the oil prices such as the conflict that arose between Israel and Lebanon and North Korea missile tests, Hurricane Katrina, Iranian Nuclear plant and various other factors. By the year 2008, due to the global recession, the global oil price hit the peak that anyone wouldn’t have expected. It increased up to $147/ barrel. This recession cause the demand for the oil to grow up and energy demand shrink latter.

World crude oil demand grew at the rate of 1.6% on an average per year right from 1998 to 2006. Since all the Energy resources now depend on Oil, Energy Information Administration has reported that the world demand for the oil is project to increase by 37% from 2006 till 2030.It also states that although the Petroleum prices have reduces considerable in developed countries, a 3.5% rise will be observed in 2013 for petroleum by the developing countries and hence will cause a net rise of petrol demand during that period.

Transportation is of the major element that consumes the large proportion of energy and has seen a huge growth in the recent decades. With the increase in the number of vehicles, the oil demand also steeps up thereby increases the demand. It is predicted that cars and trucks consume the maximum usage of oil and thereby increase the oil usage by 75% in India and China. It is also predicted that China and India will still grown in the automobile segment making the use of Oils more mandatory.

Some countries have realised the outcome of global oil inflation and have already started preventive means of reducing this oil consumption. Countries such as Germany and United States have started using Oil free vehicles such as solar powered vehicles. This not only reduces the oil energy consumption but also reduces the global effect on the earth’s atmosphere. Oil charts have shown that there will be considerable reduction in oil consumption if alternative fuels such as bio plastic, bioasphault and other such bio fuels are used. This not only reduces the price but also keeps the inflation under check. The other factor than can be considered to keep oil demand in check is the transport demand management. If that is maintained in regularised manner then oil prices will not rise up.

As the countries develop, the industries, rapid urbanization will lead up to rapid increase in the consumption of oil. India and China lead the way in becoming the largest consumers of Oil. If this energy consuming prevails there will be another recession which might lead to global inflation and thereby result in the fall of the global economy. Let’s try to save energy and save our world.