Effect of High Petroleum Prices on Economy

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A literature review is a text written by someone to consider the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic. Critical points:

* history

Petroleum, in one form or another, has been used since ancient times, and is now important across society, including in economy, politics and technology. The rise in importance was due to the invention of the internal combustion engine, and the importance of petroleum to industrial organic chemistry, particularly the synthesis of plastics, fertilizers, solvents, adhesives and pesticides etc. Formation from crude oil:

An oil well produces predominantly crude oil, with some natural gas dissolved in it. Because the pressure is lower at the surface than underground, some of the gas will come out of solution and be recovered (or burned) as associated gas or solution gas. A gas well produces predominantly natural gas. However, because the underground temperature and pressure are higher than at the surface, the gas may contain heavier hydrocarbons such as pentane, hexane, and heptane in the gaseous state. At surface conditions these will condense out of the gas to form natural gas condensate, often shortened . Petrol is obtained from crude oil by fractional distillation and subsequent mixing of some of the fractions to obtain the desired properties. There are seasonal differences in petrol to facilitate vehicle operation under different climactic conditions. Some of the fractions for the petrol may be obtained by "cracking" higher molecular weight fractions to lower molecular weights. Some impurities, like sulfur, and some unsaturation of the fraction may be removed by treatment with hydrogen which replaces the impurity on the hydrocarbon molecule or adds hydrogen to the molecule to make it more stable. Some of the fractions may be treated to rearrange some of the molecules to make a more desierable product. It is a complex process that is highly dependant on the crude source, desired products, time of year, and the configuration of the refinery. From the same crude may come: fractions for making plastics, rubber, heating oil, diesel and gasoline fuels, lpg fuel, lubricants, solvents, petroleum coke, elemental sulfur, asphalt, bunker fuel oil, etc. Petroleum is used in manufacturing a wide variety of materials, and it is estimated that the world consumes about 90 million barrels each day. Composition by weight Element| |

| Percent range|
Carbon| 83 to 87%|
Hydrogen| 10 to 14%|
Nitrogen| 0.1 to 2%|
Oxygen| 0.05 to 1.5%|
Sulfur| 0.05 to 6.0%|
Metals| < 0.1%|
First five decades:
When it gained independence in 1947 from UK, Pakistan's average economic growth rate since independence has been higher than the average growth rate of the world economy during the period. Average annual real GDP growth rates ]were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. Average annual growth fell to 4.6% in the 1990s with significantly lower growth in the second half of that decade. During the 1960s, Pakistan was seen as a model of economic development around the world, and there was much praise for its economic progression. Karachi was seen as an economic role model around the world, and there was much praise for the way its economy was progressing. Many countries sought to emulate Pakistan's economic planning strategy and one of them,SOUTH KORIA copied the city's second "Five-Year Plan" and World Financial Center in Seoul is designed and modeled after Karachi. Later, economic mismanagement in general, and fiscally imprudent...
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