Measuring The Impact of Technology Innovations on Global Oil Prices

Abstract

This study examined the impact of technological innovations on global oil prices during the period 2019-2024, focusing on technological developments that have transformed the global oil industry, including advanced drilling technologies, artificial intelligence, and renewable energy. The study demonstrated that significant advances in drilling technologies, such as horizontal drilling and hydraulic fracturing, have directly contributed to increasing production volumes from depleted and unconventional fields, significantly reducing production costs. Artificial intelligence has also played a pivotal role in improving exploration and production operations by analyzing massive amounts of data accurately and quickly, enabling companies to make better and faster decisions and reduce waste and costs. Furthermore, renewable energy has indirectly contributed to reshaping the dynamics of the oil market, as many countries and institutions have begun investing in clean and sustainable energy sources, reducing global dependence on conventional oil and creating new competition in the global energy mix. The study demonstrated that these innovations not only enhanced operational efficiency and reduced costs but also contributed to relatively stable oil prices despite the economic and geopolitical challenges the world experienced during that period. The study presented recommendations for enhancing international cooperation in technology and developing innovative solutions that would enhance the sustainability of the oil industry and reduce reliance on traditional resources, ensuring a balance between meeting global market needs and preserving the environment.