Impact of oil shocks on venezuelan economy

Abstract

Oil is a primary source of energy classified as one of the three commercial sources along with the other fossil fuels such as coal and natural gas. It is generally found under the surface of the earth in areas that have porous rocks or have folds between rocks. It is found in a three-layer format – water below it and a layer of gas above it. After extraction using machineries, crude oil is treated in a refinery before it’s usage and sale. The oil when exposed to fractional distillation produces not only a single product but also supports multiple industries through its wide spectrum of products such as aviation fuel, oil for ships, oil to be used in power plants for electricity generation, home-heating oil, making crude oil the most traded source of energy at a global scale.