Summary Essay Example | Topics and Well Written Essays - 500 words - 70

Summary - Essay Example The author’s major argument was that an extended conflict in Libya would lead to increased global fuel prices and subsequently derail economic growth. Though Libya was presented as a minor supplier of global crude oil, its product was of high quality and was as a result preferred by many of the European countries that did not have facilities for refining low quality oil that is majorly available in the global market. Its crude oil was also preferred by the United States’ market (Krauss, p. 1). Krauss further argued that failure to solve the Libyan crisis would force dependants of the Libyan oil to shift their demand to two alternative suppliers, Nigeria and Algeria. This would however lead to increase in fuel prices as had earlier been witnessed in the United States. According to the author, quality of oil from Libya, Algeria, and Nigeria concentrates focus on their crude oil instead of alternatives from other global suppliers. As a result, relative supply shortage, due to the conflict, with respect to demand would hike prices as had been previously witnessed. Though the article noted adverse impacts of the conflict on major European economies, it reported that the United States would not be a victim due to its ability to refine sour crude oil, unlike many of the European nations that heavily depended on Libyan oil. The author supported his opinion of the impacts of the Libyan conflict on global crude oil market by experts’ views from academic and corporate fields. With the fact that oil industries in Middle East countries are majorly controlled by the government, national security forces ensures protection of to oil companies. Production in Libya, according to the author, was however vulnerable due to privatization that made it highly sensitive (Krauss, p. 1). The article directly relates to concepts of scarcity and competition. Sowell defines scarcity as a condition of limited supply relative to demand that consequently means