Economic And Political Interests Of Oil Exporting Economies

More often, higher oil prices falter the overall global economy. While exporting countries may enjoy the returns on transactions, importing countries, especially the net importers, largely suffer the consequences of high petroleum prices thereupon slowing down the deelopment of the global economy. The impact of high oil prices on importers and the entire world economy cannot be underrated as they adversely affect the growth of the importing economies in various ways. For one, with a rise in oil prices, commodity cost also rises signalling bad times for the recipient economies (Yépez-Garcia and Dana 90). Commodities such as food are dependent on oil for transport and shipment

Exchange rates play a pivotal role in the relationships between individual economies and the global economy. Almost all financial flows are processed through the exchange rate, as a result the movements and fluctuations of the exchange have a significant impact on international competitiveness, trade flows, investment decisions and many other factors within the economy. Due to the increasing globalisation of the world economy, trade and financial flows are becoming more accessible

At the dawn of the Industrial Era, many curative people imagined the future of humans and how we could advance in technology. But as we neared the future they imagined we reared off the line many times. We could have used ethyl, may cars in the early 1900's had engines that used both gasoline and ethyl. The United States of America has been using gasoline for over 100 years and has now as a country we need to change to a new source, sooner or later.

This study is designed to examine the causes of exchange rate fluctuations and their impact on the Nigerian economy since there is scarcely any country that lives in absolute autarky in this globalised world. The economies of all the countries of the world are linked directly or indirectly through asset or/and goods markets. This linkage is made possible through trade and facilitated by foreign exchange. The price of foreign currencies in terms of a local currency (i.e. foreign exchange) is therefore important to the understanding of the growth trajectory of all countries of the world.

The oil lobby was not the only reason the United States got involved, however. During a meeting with top CIA and State Department officials in November 1952, shortly after Dwight D. Eisenhower won the election. M16 agent C. M. Woodhouse brought to their attention the threat of communist expansion in Iran. The United States, contending with the peak of Cold War tensions, viewed the combination of Iran’s long border with the Soviet Union, active Communist party, and the Mossadeq-led nationalist movement as a major threat. The new secretary of state, John Foster Dulles, and his brother, the new CIA director Allen Dulles, took the possibility of a communist takeover very seriously. Shortly after Eisenhower’s inauguration, the Dulles brothers agreed

Robert Samuelson's article, "Let's export oil," is a brilliant opinion on the macroeconomic advantages of exporting oil in the international markets and the need to lift the ban on the export of crude oil. The application of new drilling techniques has resulted in an exponential increase in the production of crude oil. This increased production has given us the opportunity to reevaluate our position on the ban on the export of crude oil, because with this new capability comes a responsibility of stabilizing the global oil market as a responsible member of the global community, not to mention our responsibility towards the American people by curbing our import dependence. The author details how this ban is handing an unfair advantage to hostile countries such as Russia and Iran, while severely limiting the options to oil producers in the States, who would eventually reduce, if not stop, new exploration because the ban makes it a less lucrative project which is not worthy of investing time and resources on it. While trying to be fair and balanced, he highlights the risks involved in transporting oil by trains and inadequate pipelines, while explicitly mentioning the environmental worries about fracking. He clearly points out the microeconomic implications by mentioning that the quadrupling of oil prices in the early 1970s led to the ban on oil exports. He understands that persuading the public may be difficult, and that is where political leadership needs to bridge this divide by explaining to the public in the most efficient way possible that despite the risks involved, the gains outweigh the costs.

Economic growth is fundamental for sustainable development. It is not possible, for a developing country, to ameliorate the quality of life of its growing population without economic growth. The relationship between government expenditure and economic growth has continued to generate series of debate among scholars. Government performs two functions- protection (and security) and provisions of certain public goods (Abdullah, 2000) and (Al-Yousif, 2000). Protection function consists of the creation of rule of law and enforcement of property rights. This helps to minimize risks of criminality, protect life and property, and the nation from external aggression. Under the provisions of public goods are

"... an open and attractive oil sector for foreign investment, with the appropriate arrangements to explore new fields."

The Importance of Oil in U.S. Foreign Policy During the oil and energy crisis of the mid-1970s Americans became painfully aware of the consequences of the United States dependence on foreign sources of oil. Unfortunately, research and exploration for alternative sources of oil in North America has not been pursued vigorously enough to cease such foreign dependence. As a result, in the mid-1990s Americans find themselves in the same precarious position as they were during the 1970s. The Persian-Gulf War in 1991 was all the proof needed to convince the United States of how strongly oil still influences our foreign policy and international relations in general. Oil and U.S. Foreign Policy: Historical Issues The United

In an open and deregulated economic environment, exchange rates can play an important role in macroeconomic management for stability and growth. The increasing role of exchange rates since the early 1970s has indeed been a break from the Bretton Woods tradition of the 1950s and 1960s that assigned a limited role for exchange rates in economic affairs. However, the banking and currency crises of the 1990s that afflicted many developing countries in different regions have provided a somber lesson that in a global economic setting, exchange rate policy, and monetary and financial policy more broadly, cannot be

The United States has made great strides with its oil industries. In fact oil is used in a plethora of products that are commonly used every day such as plastics. The use of oil has allowed the citizens to travel globally, to enjoy the freedoms the combustible engine have provided and to produce affordable energy sources to handle the tasks of living daily life. However, the problem is that oil is not renewable and is unclean. It not only destroys the atmosphere but those who control the majority of the oil are considered the richest countries among the world. All other countries must depend upon those few countries for the excess oil that they provide. This puts the United States at risk for shortages if differences arise between those countries and puts limits on the sort of political sanctions that can be placed on those countries if they commit obvious criminal acts against humanity or threaten war. The fine balancing act of pleasing the Middle East and still maintaining autonomy in the United States even while the United States depends on the Middle East for most of its oil is a double-edged sword. The dependency on foreign oil needs to be reduced to a minimum. There are options open to renewable, clean energy sources. There are alternative fuels that are not necessarily clean but are not crude oil and would help to lessen the need for Middle Eastern assistance. There are however several blockages to

The Nigerian economy has quite the surplus of natural resources they offer the potential for economic growth. “Crude oil accounted for over 95% of exports and over 65% of government revenue in 2004;” Nigeria is number eight in the world's exporter for oil. But agriculture still is a big part in the basic economic activity for the Nigerians.

The appeasement of the Americans would have been feasible with some flexibility and long-term thinking. Appeasement of the Americans would have required the Japanese to “abandon all, or at least half, of China,” according to Matsuoka Yosuke, an aggressive pro-expansionist advisor who was the leading advocate for the

Oil embargo in 1973 by the Organization of Petroleum Exporting Companies (OPEC) focuses attention on the energy crisis and results in increased demand for coal as a preferred alternative to oil in the United States Europe, and much of the rest of the world [Speight 2013]. At that time there were a large number of oil power plants in the world which had suddenly become very expensive to operate led to the introduction of larger coal-fired power plants [Jeffs 2010]. While Middle East countries which has the largest proven reserves of crude oil; fuel oil as well as crude oil are an available and economically feasible fuel in power and water desalination plants (Fig 1). For example, Saudi Arabia which has the largest known oil reserves in the world, consume annually more than 40 million tons of crude oil and heavy fuel oil [Husain and Ahmad 2015] in both sea water desalination and power plants. The produced ashes were collected using electrostatic precipitators installed in the major facilities and dispose into landfills. While Egypt consume annually approximately 7 million tons of heavy fuel oil in electric power plants to generate electricity, generation more than 4000 metric tons of oil ashes [Mohammed et al 2016]. All the Egyptian power plants are not fitted with electrostatic precipitators and situated in the densely populated region. In addition, most of the ashes are not used for anything but landfill. However, little attention has been paid to the environmental effect

Since the past few decades, owning a car has become a necessity in order to commute from one place to another. However, cars do not work automatically, they require fuel. Since the past decade, the petroleum industry has become one of the leading industries impacting the nation’s economy. Oil has become an essential commodity as it is utilized in transportation vehicles, serves as a raw material for manufacturing plastics, and is utilized in homes for cooking. America’s economy is greatly dependent on petroleum as it is the “black gold” of the nation. The considerable significance of oil has led to the drilling of it, which is not only limited to land, but also the oceans. Offshore drilling is a method in which petroleum is extracted from underneath the seabed. It is one of the significant technological advancements in the past few decades. However, the ones who are involved in the process of offshore oil production are humans, and humans tend to make mistakes. In 1969, due to a human error, an oil spill occurred and natural gas, oil, and mud shot up the well and oozed into the ocean (“Offshore Drilling”). The oil spilled led to an environmental disaster which killed thousands of marine animals and distorted the environment. In order to prevent the same error, the government passed a moratorium in 1981, banning more than 85 percent of the country’s oil drilling sites (“Offshore Drilling”). The moratorium restricted the United States to mass-produce its natural resource.