What’s behind the Game of Oil?

December 20th, 2007 at 05:39pm Under Crude oil+ OPEC+ Oil+ Oil politics

More than in a half century long history Oil, has been the only one determining factor on international economy. The rise and fall in oil prices have shivered most of the biggest industry through out the world. Since the end of world war I oil has become the single most valuable element of shivering the entire economy of developed countries like US, UK and most of EU. Many other smaller factors have risen up since then but the politics of oil was the only determining factor for the Gulf war and Invasion of Iraq. Most economist and activist all around the world have the same assumption that oil was the only reason behind such tragictry events killing more than million people on both sides. This is the oil theory that has proved the sole supremacy of US over the world and has kept Russia in a leading position in the international politics despite their economy being poor and loose organizational structure.

Stopping the Oil imperialism

Most of the countries that produce crude oil hardly spends the money on their economic development or have public funds for such expenditure. The citizens of such countries have absolutely no role in the trade of oil. That benefits goes directly to the minority of people that control the whole process of selling and purchasing of oil. One intermediate solution to this problem can be using the oil as a public utility. According to this process, the handling of oil and its resources is given to private sector but the price is set by the public utilities department which controls the monopolization by any single entity.

The politics of Oil has some really hard dent on the international humanity like the 1990 Gulf war and recent invasion of Iraq; if the uncontrolled game of Oilisim is not stopped or controlled by the collective human support of all countries involved in it then it will surely bring in few more devastating events in near future. After the invasion in Iraq, US is already eyeing on Iran and Syria and a small fire from any side can light up the whole warfare scenario again which can be more devastating that earlier once. This should be stopped as the world needs some chance for peace, especially around Christmas.

By Oilism.com Add comment

The Peak Oil Theory

December 20th, 2007 at 05:30pm Under OPEC+ Oil+ Oil Theory+ Oil politics+ Production levels+ peak oil

Peak oil theory or normally known as Hubbert Peak theory states that the future word production of oil with increasing in near years and again decline at the same rate until the reserves are exhausted. This Peak Oil theory suggest the way to find out the current reserves capacity and its duration to exhaust but it has also been disregarded as mere assumption because earlier theory on similar subjects could not state the real peak time and failed without any calculations. The theory tells that when crude oil reserves starts using the similar amount of water used to extract oil then that reserve starts exhausting and fails in near future.

This theory has been successful to determine the US oil peak time which led to a decline in oil production in United States in 1971. Since then, OPEC has been determining the oil prices in international market which had led to a major oil crisis in 1973.  After the US reserves reached its peak many other countries to follow the trend including UK’s north seas which peaked in 1990, Mexico’s national oil company and China’s two major oil reserves are on decline. This has created a sudden decrease in international oil supply. But this has not created a huge panic situation because the recent finding of oil reserves in India and other countries has balanced the demand and supply of oil in markets.

It is actually very difficult to determine the time for peak of any crude oil reserve due to the unreliable accounting of oil producing countries oil reserves and uncertain production data. Some economist have said the years 1989,1995 and 1995 -2000 to be the major years of oil peak but those failed to prove because of unavailable data. Now some economist have a speculation that 2007 might be the peak year of oil and some years later for natural gas but this cannot be proven unless the reserves exhaust completely.

Whatever be the speculation of peak oil theory, the general idea is that crude oil is reducing in quantity, all around the world and unless an alternative solution is not found, the future of world remains slightly uncertain over oil prices.

By Oilism.com Add comment