How does an oil boom work?

An oil boom occurs when there is a rapid increase in oil production and economic activity in a region, typically due to the discovery of new oil reserves or advancements in extraction technology. This surge can attract investments, create jobs, and stimulate local economies, often leading to population growth and infrastructure development. However, it can also result in challenges such as environmental degradation, fluctuations in oil prices, and social tensions. Ultimately, the boom can significantly impact both the local and global economy, depending on its scale and duration.