What would happen if one of the major players in the oil industry was to shut down?



  1. 0 Votes

    There would probably be an economic turmoil that would influence the country in various aspects, and this economic downturn may create a domino effect for other countries that have relations to the country that has fallen. 

  2. 0 Votes

    It would depend a lot on which country it was. If it was any oil producer other than Saudi Arabia, then Saudi could (if it chose to) increase its oil production to make up the loss. Saudi is the only country that has significant spare capacity (oil ready to be produced, but not on production).

    Otherwise, impacts would first be felt in nations doing direct business with the nation in question. If it was Iran, China’s primary trading partner for oil, that would be the first impact although since oil is priced globally, the price would soar everywhere. China might begin to seek replacements from nations that normally sell their oil to the US; China might be more willing and able to pay the higher prices, and then there would be both high prices AND actual shortages in the US. It could get very complicated.

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