Policies and Laws on Crude Oil and Its Products: Dissertation Proposal

Introduction

The demand for crude oil and petroleum products has been on a high rise here in America and the rest of the world at high rates that exceed its supply. The trends have been volatile due to the extensive use of petroleum products as primary sources of energy in the production of electricity, chemicals, and lubricants and transportation. Moreover, demographic changes that include uncontrolled population increase have led to rising demands for the use of paraffin and gas in cooking and lighting (Difiglio 2014, p. 49). On the other hand, crude oil comes from natural organic compounds that are non-renewable as such precaution must be observed in the exploitation to ensure sustainable use of the product in which it does not diminish. As such, oil and gas producing nations and companies face the challenge of oil resource management while controlling the supply chain of it daily (Difiglio 2014, p.52). The oil firms have absorbed policies and strategies such that the supply of the product is regulated making the market supply of the product inflexible thus, increased prices to consumers. This dissertation proposal analyses the causes of imbalance in demand and supply of petroleum products starts with objectives, knowledge gap, and methodologies for the study.

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Research Objectives

The primary objective for the study is to establish and develop a primary reference material required in the formulation of future policies and laws on crude oil and its products eradicating the inflexible changes in the demand and supply of the primary source of energy while changing the energy situation to a more stable one(Difiglio 2014, p.56). Moreover, the study facilitates the management of the global crude oil prices by inhibiting the political power of oil producers who withhold the commodity for a periodic time to raise the market demand for the good; thus, the increased prices. Seemingly, the study might object to assure the amendment of environmental policies that affect the movement of oil from exporters to importer nations, fast movement of the energy source from producers to consumers. Environmental policies expect a zero pollution incident in the transport of fuel; therefore companies had to take caution for environmentally safe transportation.

Knowledge Gap and Rationale for Study

There is a gap in knowledge on factors leading to an imbalance of demand and supply of crude oil and its products. The study will provide information on the research topic thus filling the existing knowledge gap. Previous studies concentrated on the analysis of the relationship between crude oil availability and pricing. There is inadequate knowledge in an understanding of factors that influence the demand and supply of petroleum products in America and beyond. Research on the causes of imbalance of demand and supply of crude oil and its products will be vital for the governments, corporates, and private firms that deal with the products. Stakeholders in will strategize on a possible mechanism to avoid the setback of the trends through the provision of a valuable insight of what causes an imbalance of demand and supply of crude oil and its products. The spiking of petrol prices affects the majority of citizens in both developed and underdeveloped nations since the cost of living increases when oil products increase globally (Difiglio 2014, p.56). Equally, the study might help firms revisit and amend policies that have failed to control resilient supply chain functions in tackling the outcomes of the diminishing supply of oil. In another scenario, the research might help governments, and private firm manages to formulate policies that check on supply chain management thus reducing cases of inflation whenever oil prices increase.

Research Methodology

The research methodology provides the techniques and procedures that will be used to collect data about the problem under study. The method includes; the research design, instruments used to collects data, target population, sample size, data collection procedure and reliability of the information collected. For the particular problem, it's expected a descriptive design to be deployed to establish factors that influence the imbalance in the supply and demand of oil and its products in America. The model best suits the study since it provides a holistic approach of assessment and understanding of flexibility in supply and influences the ever affects the ready market of the product. The target population for the research includes all people engaging in the exploration, transportation, refining and marketing of oil. These targets include; oil exploration companies, marketing firms, oil supply analysts, loading superintendents, and Oil-firm accountants. In the study, officers in the supply and marketing will be used to explore existing trends in the supply chain of oil products, a small sample size selected to represent the entire population.

Quantitative data analysis embraces the use of questionnaires and semi-structured interviews that are the most viable techniques to exploit. In essence, the research instrument expected are questionnaires and interviews, which must reflect on the aims and objectives of research highlighting both dependent and independent variables. Data collection is from the relevant sources for five working days and new information to be organized for analysis. Data analysis will occur through the use of SPSS software and a descriptive analysis deployed. The found information should be coded in categories classifying the emergent issues for useful interpretation.

References

Difiglio, C., 2014. Oil, economic growth and strategic petroleum stocks. Energy Strategy Reviews, 5, pp.48-58.