Managing supply and demand through transfers, storage and pricing
Oil production declined due to over exploitation
Tech developments= enable oil and gas exploration to be taken place in extreme environments
Transferred through pipelines or converted into liquid form and by tankers
Reduction in oil supply= increase in oil price
Stored for strategic reasons
Global storage capacity= 7-8 billion barrels- concentrated in global trading hubs e.g. Singapore
USA= largest strategic oil reserves in the world