Benefit Consultants Blog

As we all realise we are currently in the middle of an all out economic crisis, every sector is feeling the wrath and most importantly people left, right and centre are being made redundant and losing there work it what could only lead to devastation for there families.

One of the worst effected industries at the moment though has to be the huge oil industries; we are even seeing the biggest oil millionaires in the world start to cut back on expenditure and make staff redundant.

But predictions say things will get better, but the oil industry is looking very bad as the International Energy Agency said that we could experience a big supply crunch by next year. At the moment there are no problems because the demand for oil is at a very minimal rate, but when we start to recover from the devastation of the economic downturn there will be a problem in production, especially if they do not get any capital investment.

Oil's increase from below $20 in 2002 to a record high near $150 last year was fuelled in section by increasing demand from China and other emerging economies which strained supplies. The oil demand slowed down a lot in 2009 due to the shear devastation of the banking crisis that spread throughout the world.

But as the economy improves, sectors will get better and if the oil industry does not get the backing it needs then production of oil will become minimal. We would have to pay more for our heating oil and our car fuel as the heating oil suppliers would have no option but to increase the heating oil prices to make them a healthy profit.