Learning how to start a new business from conception to execution. Oil prices have risen steadily over the past year, but what many people don’t know is why they’ve gone up so much. Because the Syrian Civil War has cut down on oil production, the global demand for oil has outstripped supply, which has caused prices to rise substantially in the last year or so. So if you’re wondering why gas prices have increased and why they don’t seem to be coming down anytime soon, now you know the answer!
History of Oil in Syria
Syria is a small oil-rich country located in the Middle East. The majority of Syria's oil fields are located in the eastern part of the country, near the city of Raqqa. Prior to the Syrian Civil War, Syria was producing around 400,000 barrels of oil per day. However, production has fallen sharply since the start of the conflict, with most estimates putting current production at around 20,000 barrels per day. Despite this drop in production, oil prices actually rose during the early years of the war. This was due to concerns about potential disruptions to supply from other major oil-producing countries in the region, such as Iraq and Iran. However, prices have fallen back to pre-war levels in recent years as these concerns have eased.
The 2011 Uprising
In Syria, the 2011 uprising began as a part of the Arab Spring protests. The protests were initially against President Bashar al-Assad's government. They quickly turned into an armed conflict when Assad's government began to violently crack down on protesters. The civil war has displaced millions of Syrians and left hundreds of thousands dead. It is one of the most devastating conflicts in recent history.
The 2012–2014 Supply Cuts
The 2012–2014 Syrian civil war resulted in sharp production cuts in Syria, which was a small but strategically important oil producer. In 2011, Syria produced 380,000 barrels per day (bpd), but by 2013 production had fallen to just 60,000 bpd. The fall in output was due to fighting around key oil fields, damage to infrastructure, and Western sanctions. As a result of the production cuts, global oil prices rose by about $10 per barrel in late 2013.
The 2014–2015 Supply Restraints
The Syrian Civil War began in 2011, resulting in production cuts of up to 700,000 barrels per day. In addition, oil prices were further restrained by international sanctions placed on Syria. These two factors resulted in a rise in oil prices. However, as the war progressed, oil prices began to fall as production increased. The increase in production was due to Islamic State capturing several key oil fields. As a result, by 2015 oil prices had returned to pre-war levels.
Conclusions on the causes of increased oil prices during the conflict
There are a variety of factors that contributed to increased oil prices during the Syrian Civil War. The conflict disrupted production and exports from Syria, as well as disrupted oil transportation routes in the region. Additionally, global demand for oil was high during this time period, while other major producers were experiencing declines in production. All of these factors together resulted in higher oil prices during the Syrian Civil War.