The Issue of Oil Price Rising

The issue of oil price rising has become a widely discussion under the circumstances

of the instability in Middle East and global economic recession, and oil price

fluctuations may change people's daily demand and economic development. Despite

the fact that lower fuel price is more likely to be accepted and supported by the

majority of people as it stabilises the prices of goods and the costs of transportation,

the value of increased oil price contributes to emerging enterprises by means of

innovation and technology development in the long term. In this essay, it attempts to

investigate four elements which link to high oil price and the rationalities behind the

increase of oil price for healthy lifestyle and innovative industries, which in turn

accelerate human progress. This essay will deal with four aspects. It will start with a

brief analysis of three major reasons with respect to the rises in oil price, followed by

explaining the flaws and merits of oil price rising. After that, four elements which are

business performance, consumption behaviors, environmental protection and

globalisation will be addressed and how they influence on the diversified enterprises

and healthy lifestyle. Finally, potential impacts on global economy and

recommendations for excessive oil price will be considered in terms of market

activities and global economy environment. According to Balke et al. (2009), oil prices are keeping upward trend recently, and it

is obvious that people continue to rely on conventional sources of energy, such as coal,

oil and natural gas.