Internatyional oil system

Energy consumption is vital for sustainable development. This energy need which is vital for sustainable development is faced with various energy sources such as renewable energy sources and fossil fuels. Oil is the most widely used energy source among these sources. The stages of oil industry which explore oil, make investments on the reserves and supply oil to the market are projects which require high fixed costs and big investments. The direction of the interaction among the actors of the international oil system is influenced by various disciplines such as economics politics, geology, history and sociology. The roots of this interaction lie even in the exploration period. Consumer countries have to secure their oil supplies for uninterrupted continuation of their social life and economic development. Oil producer countries, also, are vitally dependant on this energy source. Producer countries primary source of income of which is oil trade are dependant on the security of oil demand for their social life and economic development. Other important actors of the internarional oil system are the oil companies. International Oil Companies, National Oil Companies and Independent Oil Companies perform their duties and responsibilities of the global flow of oil with the host governments, the owner of this hydrocarbon source. The duties and responsibilities of the oil companies do not end with the supply of oil to the market from the exploration stage which is determined by either the concession system or the contract system. Oil companies acquire very important roles in the determination of oil prices which occupy a key position in both national and global eceonomic balance. The actors of this structure, which functions as an international system, are interdependant to each other. Each component of this system both influences and is being influenced by this system with different ratios in relation to its strength. Key Words 1. Energy 2. Crude Oil 3. System 4. Security of Supply 5. Oil Prices